10 September 2019

Itaconix plc

Unaudited interim results for the 6 month period to 30 June 2019

Commercial Base and Momentum for Long Term Growth

Itaconix plc (AIM: ITX) a leading innovator in sustainable specialty polymers (“Itaconix” or the “Company”), today announces its unaudited interim results for the six-month period to 30 June 2019.

Highlights

• Total revenues for the six-month period were 78% higher than the first half of 2018 and 23% higher than the
  second half of 2018. First half revenues also represent 72% of revenues for the previous full year.
  • Growth was broadly based across the Company’s non-phosphate detergent, odour control, and hair styling polymers.
  • Use of our second generation Itaconix® CHT™ 122 detergent polymer expanded further in new North American retail accounts based on the non-phosphate automatic dish detergent formula licensed to New Wave, as announced in December 2018.
  • Use of Itaconix® CHT™ 122 also expanded into Europe, with the first use in a non-phosphate
    detergent announced in May.
  • Demand for our ZINADOR™ odor removal polymer continues to expand into leading household brands and new regions through our collaboration with Croda.
  • Revenues for our hairstyling polymer advanced significantly with both new customers and repeat orders from existing customers.
• Gross profits increased by 157% over the first half of 2018 and by 32% over the second half of 2018.
• Administrative expenses decreased by 52% compared to the first half of 2018 and by 18% compared to the second half of 2018.
• Unaudited Adjusted EBITDA⁽¹⁾ was a loss of £1.0 million, compared to a loss of £2.5 million for the same period in 2018 and a loss of £1.4 million for the second half of 2018, reflecting the success of the Company’s efforts to reduce the overall cost base while growing revenues.
• Net cash as at 30 June 2019 was £1.5 million, compared to £2.1 million as at 31 December 2018.
• Important commercial milestones were achieved to support continued growth with two new global supply agreements with Nouryon for Itaconix detergent and hair styling polymers.
  • Nouryon launched Itaconix’s hair styling polymer as Amaze™ SP in April, and subsequently issued its first purchase order to Itaconix.
• The Company completed the divestment of its legacy nicotine gum business in May with the sale of its interest in Alkalon A/S for £0.2 million
  

Outlook

Itaconix is in a key stage of broad-based long-term revenue growth and value creation. From automatic dish detergents and carpet cleaners to shampoos and underarm deodorants, Itaconix’s proprietary bio-based polymers are emerging as important functional ingredients in an increasing range of everyday consumer products for home and personal care. This expanding diversity of uses is establishing a wide foundation of next generation end-product formulations for Itaconix products. Collaborations with global market leaders like Nouryon and Croda are creating opportunities to convert this foundation into robust revenue growth. John R. Shaw, Chief Executive Officer, stated: “Our base of end-product applications combined with our global collaborations is generating commercial momentum and emerging financial performance that reflect our near-term goal of sustained revenue growth to reach profitability. We have a pipeline of active customer projects to reach beyond this goal, with timing dependent on converting these projects into order volumes.”

¹Adjusted EBITDA is defined and reconciled to Operating loss in Note 4 of the Interim Report. 

For full release, please download full news release.