REG - Itaconix PLC - Trading Update

ItaconixAnnouncement

22/01/2025 07:00

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RNS Number : 1951U  Itaconix PLC  22 January 2025

For release on RNS: 22 January
2025

Itaconix plc

("Itaconix", the "Company" or the "Group")

Trading Update

Itaconix plc (AIM: ITX) (OTCQB: ITXXF), a leading innovator in plant-based
specialty polymers used to decarbonize everyday consumer products, is pleased
to provide a trading update for the year ended 31 December 2024 which is in
line with expectations.

Unaudited 2024 revenues of $6.5 million and an increase in unaudited gross
profit margins to c. 35% from 31% in 2023. reflect the Company's success at
adjusting market positioning in 2024. Revenue diversification has also
improved significantly, with increased contributions from a wider array of
products across a broader customer base. The Board believes the Company is
well positioned for future revenue growth as a higher margin business, in
furtherance of the Board's strategy to become a profitable specialty
ingredient company.

The Cleaning Sector remains a key strength and leading source of revenue.
European volumes continue to grow significantly as more detergent formulators
and producers recognize the superior performance, cost efficiency, and
sustainability benefits of Itaconix's plant-based detergent polymers. This
growth partially offset the anticipated year-on-year ("y-o-y") decline in the
North American Cleaning Sector as a result of the previously announced
strategic move away from a low margin customer.

Increased volumes purchased by Croda and Nouryon led to sizable y-o-y revenue
growth in the Hygiene and Beauty Sectors, respectively. The high relative
value of Itaconix's odour neutralizing and hair styling ingredients
contributed to improving the Company's overall gross profit margin.

The size and breadth of the Formulated Solutions business segment continue to
grow. The Company is increasingly able to provide North American brands with
new generations of consumer products. The SPARX™ program, aimed at fostering
collaborative innovation with advanced specialty ingredient companies and
end-product manufacturers, is developing well and is expected to introduce at
least 10 new products and generate additional revenue opportunities in 2025.

The balance sheet remains strong with sufficient cash resources to fund future
growth. Unaudited net cash and investments as at 31 December 2024 were $6.7
million (2023: $10.0 million), which reflects investments in new marketing
capabilities, new products, additional product studies and global regulatory
approvals as well as a step up in inventory levels to support substantial
current and expected increases in European revenues.

Itaconix is proud of its Environmental, Social, and Governance (ESG) impact
and its 2023 ESG report is available for investors to review on the Company
website. Visit www.itaconix.com to download the report.

Overall, the Board remains optimistic about the Company's prospects for 2025,
driven by increasing customer and consumer awareness of the efficacy, cost
benefits, and sustainability of its products. The new year has started
strongly, although the Board remains mindful of current macroeconomic and
geopolitical risks, including a potential for increased tariffs on key raw
materials that the Company sources from Asia.

Further details of 2024 trading and the latest outlook for 2025 will be
provided when the Company announces FY24 results by early April.

John R. Shaw, CEO of Itaconix, commented:

"We have ended 2024 in a strong position, with trading in line with
expectations and continued progress in diversifying our revenues. Our growth
in Europe, customer diversification, and the development of our SPARX™
program underpin our optimism for 2025. We remain committed to delivering
sustainable solutions that meet evolving customer needs while carefully
navigating external risks. With a solid balance sheet and a growing customer
base, we are confident in our ability to sustain growth and create long-term
value."

- Ends -

Enquiries:

Itaconix
plc
+1 603 775 4400

John R. Shaw / Laura Denner

Rosewood
 
+44 (0) 207 653 8704

Financial PR

John West / Llew Angus

Canaccord Genuity
 
+44 (0) 7523 8000

Nominated Adviser and Broker

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 detergents, hygiene, and
hair care. Itaconix's products contribute to the global low carbon economy.

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

 

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