Itaconix plc
("Itaconix" or the "Company")
Half year results for the period ended 30 June 2024
Itaconix (LSE: ITX) (OTCQB: ITXXF), a leading innovator in sustainable plant-based polymers used to decarbonise everyday consumer products, is pleased to announce its unaudited interim results for the six months ended 30 June 2024.
A copy of the Interim Report & Accounts is available for download on Itaconix's website at www.itaconix.com.
John R. Shaw, CEO of Itaconix, commented:
“We have succeeded at adjusting our revenue base with gross profit margins that better reflect the value of our plant-based ingredients. Our efforts in the first half of the year place the Company in position for a strong second half and future long-term growth. With cash resources in place to support our new marketing efforts and new product development, the Company is firmly in a new stage of progress, focused on achieving near-term targets while also pursuing larger and broader opportunities for its technology platform. The Company remains on track to deliver full-year 2024 results in line with the Board’s expectations.”
Financial Highlights
- First half revenues of $2.8 million were 30% lower than in the first half of 2023 ($4.0 million).
- Gross profits were $1.1 million, consistent with the first half of 2023.
- Gross profit margin was 39% compared to 28% for the first half of 2023. Gross profit margin on Performance Ingredients was 46% compared to 34% for the first half of 2023. This improvement in gross profit margin was based on the strategic decision, as previously announced, to focus on higher-margin business and a more diverse revenue base for its performance ingredients.
- Adjusted EBITDA1 was a loss of $1.0 million, compared to a loss of $0.4 million for the first half of 2023 and a loss of $0.5 million for the second half of 2023, due to increased investment spending on major new revenue generating opportunities and further development of our operating capabilities.
- As at 30 June 2024, Cash and Investments were $8.0 million, compared to $10.0 million as at 31 December 2023. To date, we have judiciously used the proceeds from our 2023 fundraise on working capital, capital spending on laboratory and facility upgrades, new marketing efforts, increased new product development, new regulatory approvals, and further studies to support the human and environmental safety of our ingredients.
- The Board reiterates its revenue expectations of $6.0 million to $6.5 million and gross profit margin expectations of 36% for FY 2024.
Company Milestones:
- Cleaning revenues of $2.3 million for the first half of 2024 compared to $3.7 million in the first half of 2023.
- As announced on 2 April 2024, the Company reached an impasse on acceptable pricing with a major existing merchandizing customer in North America for supply in 2024. The Company continues to benefit from new orders and continuing revenues for the merchandizer at lower levels and better gross profit margins.
- Combined hygiene and beauty revenues were $0.4 million for the first half of 2024 compared to $0.3 million in the first half of 2023.
- Initial orders were received in the first six months for a new dish detergent application in Europe, a new sustainable leather account, and a new application in mineral processing.Improving gross profit margins, as the Company is diversifying its revenue base with new accounts and growth from existing accounts.
- As previously disclosed, revenues and volume growth from these new accounts are expected to occur predominantly in H2 2024 and beyond.
- Post period end, Company signed new Performance Ingredients supply agreements with two European customers and one US customer, as of 1 September 2024, and expects at least two more agreements in the second half of 2024.
- Polymer research and process development on the Company’s plant-based superabsorbents have succeeded in achieving absorption performance that approaches the incumbent acrylate superabsorbent polymers.
- These breakthroughs are milestones towards the Company’s goal of introducing more competitive products with broader market appeal.
- Jonathan Brooks was appointed as an Independent Non-Executive Director and Chair of the Nomination Committee in February 2024, adding extensive legal as well as capital markets and growth company experience to the Company.
1Adjusted EBITDA is defined and reconciled to Operating loss in Note 4 of the Interim Report.
For full release, please download the full news release.