REG - Itaconix PLC - Update on US Tariffs

ItaconixAnnouncement

01/05/2025 07:00

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RNS Number : 9387G  Itaconix PLC  01 May 2025

For release on RNS: 1 May 2025

Itaconix plc

("Itaconix" or the "Company")

Update on US Tariffs

Itaconix plc (AIM: ITX) (OTCQB: ITXXF), a leading innovator in plant-based
specialty polymers used in everyday consumer products, provides the following
update on current trade developments. Trading for 2025 remains in line with
the Board's expectations.

US trade actions taken in recent weeks are expected to have a negative effect
on production costs and positive impacts on US and European revenues. In
addition, the Company is implementing selective price increases and supply
chain cost reduction efforts to maintain profit margins. Expected outcomes
remain subject to any new or revised trade actions.

As previously disclosed, management took action in 2024 to invest in
increasing our finished goods inventories to meet growing demand.
Consequently, the Board believes any impact from US tariffs on imported raw
materials will take several months to have an impact as the Company draws on
finished goods and raw material inventories purchased prior to US trade
actions. Five raw materials are sourced from Asia. Two of these materials are
currently exempt from reciprocal trade tariffs. Itaconic acid and one other
material are currently subject to a net tariff of less than 25%. One material
used at low percentages has a tariff greater than 100%. Under the current
actions, Itaconix's products are expected to experience modest increases in
production costs. The Company is confident it will maintain demand growth and
overall gross profit margins with price increases and supply chain
improvements. As previously disclosed, the Company did not implement new 2025
pricing at the end of 2024 in anticipation of US trade actions.

The Company is benefiting from European revenues tied to the rise in the Euro
exchange rate to the US dollar. This positive effect is reducing the need for
major pricing changes in Europe. The Company is also in a favourable position
to benefit from expected geographic shifts in US detergent supply as brands
and retailers respond to tariffs on imports from China and Canada. As such,
the Company has seen an increase in enquiries from existing and potential
customers in certain geographies.

The Board's expectations for 2025 therefore remain unchanged, with continued
confidence in the Company's ability to drive growth and sustain gross profit
margins. The Board nevertheless continues to monitor US trade policies, the
macro-economic environment and customer ordering patterns. The Group's balance
sheet and cash position remain strong.

John R. Shaw, CEO of Itaconix, commented:

"We are committed to using the value and affordability of our ingredients to
enable our customers to succeed in the evolving trade landscape. I believe we
are in a net position to continue making gains in the midst of uncertain trade
developments, especially with the opportunities advancing within our SPARX™
program."

- Ends -

Enquiries:

Itaconix
plc
+1 603 775 4400

John R. Shaw / Laura Denner

Rosewood
 
+44 (0) 207 653 8704

Financial PR

John West / Llewellyn 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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