REG - Itaconix PLC - Trading Statement

ItaconixAnnouncement

02/04/2024 07:00

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RNS Number : 9105I  Itaconix PLC  02 April 2024

For release: 07.00, 2 April
2024
 

 

Itaconix plc

("Itaconix" or the "Company")

Trading Update

Itaconix (AIM: ITX) (OTCQB: ITXXF, a leading innovator in sustainable
plant-based polymers used to decarbonize everyday consumer products, reports
that following extensive negotiation, it has been unable to reach satisfactory
commercial terms with one of its major existing merchandizing customers in
North America for supply in 2024. This is based on the Board's strategic
decision to decline low-margin business and focus on diversifying the revenue
base for its performance ingredients. The Company continues to focus on
improving gross profit margins and seeks to build a large, profitable
specialty ingredients business. Whilst discussions on 2024 pricing and volumes
are continuing, and some order volumes remain likely, the impact is likely to
be much lower volumes and revenue from this merchandizer in FY 2024 compared
to FY 2023.

With the Board's decision, revenues and adjusted EBITDA(1) for FY 2024 and FY
2025 are expected to be below management's previous expectations, whilst gross
profit margins will improve.  FY 2024 revenues are now expected to be in the
range of $6.0 million to $6.5 million.

As per the trading update on 27 February 2024, the Company expects to announce
final results for FY 2023 in line with current expectations, achieving another
record year with unaudited revenues of $7.9 million, a substantial increase of
40.6% over FY 2022 of $5.6 million.

Itaconix remains highly optimistic about the Company's future and commercial
progress. The Company is securing new detergent customers in Europe and North
America and expanding the use of its performance ingredients into new user
bases. These efforts are focused on building a more diverse, profitable, and
sustainable revenue base to achieve Itaconix's goal of being a large and
profitable specialty ingredient company.

John R. Shaw, CEO of Itaconix, commented:

"Enhancing our revenue structure and increasing gross profit margins, while
impacting our near-term revenue streams, pave the way for our next stage of
growth. We are positioning ourselves to better capture the commercial value of
our performance ingredients with new customer wins, new volumes in
non-detergent uses, and important new product development initiatives. I
believe the strategic efforts we are taking now will advance our long-term
revenue growth and profitability objectives."

 

(1) Adjusted for interest, tax, depreciation, amortization, share-based
payments, and exceptional items.

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 which forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018 ("MAR").

 

- Ends -

 

 Itaconix plc                                                                        +1 603 775-4400

 John R. Shaw / Laura Denner
 Belvedere Communications                                                     +44 (0)20 7653 8702

 John West / Llew Angus
 Canaccord Genuity - Nominated Adviser and Sole Broker                       +44 (0) 20 7523 8000

 Adam James / Harry Pardoe

 

About Itaconix 

Itaconix uses its proprietary plant-based polymer technology platform to
produce and sell specialty ingredients that improve the safety, performance,
and sustainability of consumer products.  The Company's current ingredients
are enabling and leading new generations of products in cleaning, hygiene, and
beauty.  

www.itaconix.com (http://www.itaconix.com)

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