REG - Itaconix PLC - Trading Update

ItaconixAnnouncement

26/01/2022 07:05

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RNS Number : 6302Z  Itaconix PLC  26 January 2022

For release: 07.00, 26(th) January 2022

 

Itaconix plc

 

("Itaconix" or "the Company")

 

Trading Update for the year ended 31 December 2021

 

Itaconix (AIM: ITX) (OTCQB: ITXXF), a leading innovator in plant-based
specialty polymers used as essential ingredients in everyday consumer
products, is pleased to update the market on trading for the full year to 31
December 2021.

The Company expects to report results in line with market expectations with
unaudited revenues of $2.6 million and net cash of $0.7 million as at 31
December 2021.

Order volumes for Itaconix® cleaning ingredients recovered at the end of year
from the earlier market disruptions. Key milestones were achieved in the
second half to advance new revenue opportunities and enter 2022 with renewed
momentum. Three additional brands are now using Itaconix® TSI™ 322, with
two dishwashing detergents already launched in North America.  Cleaning
revenues are expected to be $1.8 million for FY21, compared to $2.6 million in
FY20.

Demand for the Company's hygiene ingredients exceeded expectations from
growing worldwide success by Croda in homecare applications.  In addition,
the Company achieved significant customer, application, and product
development milestones to enter 2022 with new addressable markets and revenue
potential for its VELAFRESH® hygiene products in personal care and pet care.
Hygiene revenues are expected to be $0.5 million for FY21, a 70 percent
increase from $0.3 million in FY20.

Orders for the Company's beauty ingredients began to recover in late 2021 from
a large customer inventory build in late 2020.  Beauty revenues are expected
to be $0.2 million for FY21, compared to $0.4 million in FY20.

Pressure from consumers for more sustainable products continues to grow and
create major new addressable markets for Itaconix's plant-based ingredients
and technology platform. The Company's engagement with customers and
innovation work on new chemistries and applications in 2021 are creating
substantial new revenue opportunities that are expected to emerge in 2022.

Itaconix is not immune from the macro issues affecting consumer product
industries. Delivery times and costs for key raw materials continue to
increase. The Company has implemented selective price increases to
substantially pass on additional costs and expects to continue to do so, as
well as continuing to prudently manage stocks of raw materials and finished
goods.

John R. Shaw, CEO of Itaconix, commented:

"The spotlight is on the global low-carbon economy and the need for
sustainable consumer products with competitive performance and costs.  Our
current plant-based products are finding new customers that are improving the
size and quality of our customer pipeline. At the same time, our sizable 2021
investments in innovation and customer engagement are expanding our revenue
horizons into key new addressable markets.

"Although market volatility will continue in 2022, achievement of commercial
milestones and advances in major customer projects in 2021 have already
created substantial progress towards market expectations for 2022."

 

- Ends -

 

For further information please contact:

 Itaconix plc                                                     +1 603 775 4400
 John R. Shaw / Laura Denner
 Belvedere Communications                                         +44 (0) 20 3687 2756
 John West / Llew Angus
 finnCap                                                          +44 (0) 20 7220 0500
 Ed Frisby / Abigail Kelly / Milesh Hindocha (Corporate Finance)

 Andrew Burdis / Sunila de Silva (ECM)

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

 

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 detergents, hygiene,
and hair care.  Itaconix's contributions to the global low carbon economy are
recognised by the London Stock Exchange's Green Economy Mark.

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

 

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