Itaconix PLC Trading Statement (5181G)
July 27 2021 - 2:00AM
UK Regulatory
TIDMITX
RNS Number : 5181G
Itaconix PLC
27 July 2021
Strictly embargoed for 07.00, 27 July 2021
Itaconix plc
("Itaconix" or "the Company")
Trading Update
Itaconix plc (AIM: ITX) (OTCQB: ITXXF), a leading innovator in
sustainable plant-based polymers used as essential ingredients in
everyday consumer products, provides the following update on
trading for the half year to 30 June 2021.
Further to the update given on 8 June 2021, the Company is
pleased to report that growth in demand for its plant-based
polymers has continued. Unaudited revenues for the first six months
of the year were $1.4 million, representing 26% growth over the
equivalent period in 2020 and a 36% decline from the second half of
2020. Revenues for the first half of the year were anticipated to
be lower than the second half of 2020 due to the order patterns of
major customers. As a result of the overall increase in revenues,
unaudited LBITDA(1) was in line with management's expectations.
Revenue growth for the period was led by strong product volumes
in odour control applications with new and recurring orders spread
across North America, Europe, and Asia driven by the success of
customer products. The Company plans to add a new odour control
product, expand into at least one new application, and increase
marketing efforts with broader promotional activities in the second
half of 2021.
As highlighted in the Company's trading update announced on 8
June 2021, order fluctuations are occurring in detergent
applications as brands and retailers adjust inventories due to
uncertainties around consumer buying habits, as countries emerge
from Covid-19 lockdowns. As a result, unaudited revenues in this
area for the first half of 2021 were flat compared to the first
half of 2020 due to a sharp decline in monthly volumes at the end
of the period.
Interest in new detergent products based on Itaconix(R) TSI(TM)
continues, with new detergent brands and new formulation projects
starting by the end of 2021. The Board remains confident in the
sizeable revenue potential from current and new customer projects
but expects order fluctuations to continue in the second half.
Revenues in personal care applications for the period were less
than the same period in 2020 and substantially less than the second
half of 2020 as shipments in the last part of 2020 were sufficient
to meet customer needs during the lockdowns in North America and
Europe. The Board anticipates some further delays in new orders but
remains confident of the overall major market potential for
Itaconix ingredients, particularly as the Company develops new
products and increases marketing efforts to accelerate revenues
from personal care.
As has been widely reported, the delivery costs and times for
key raw materials are increasing as suppliers continue to struggle
with shipping delays caused by the Covid-19 pandemic and disruption
throughout the supply chain. The Company has implemented product
price increases and adjusted raw material purchasing and
inventories to assure supply and mitigate potential further cost
increases.
The net proceeds from the recent $1.5 million fundraise have
been used for additional working capital, in particular to improve
the cost and certainty of the Company's raw material and finished
goods supply chain, given the current volatility in this area. The
fundraise strengthened the Company's balance sheet and net cash at
30 June 201 was $1.4 million.
John R. Shaw, CEO of Itaconix, commented:
"We continue to make significant progress capitalising on the
revenue potential in every household for our plant-based
technologies. Supply chain delays with both our customers and our
suppliers are causing some short-term issues, but our revenue
opportunities are growing through the increasing recognition of the
value of our ingredients in sustainable consumer products and
through new additions to our offering of plant-based products.
Underlying consumer demand for these products also remains
strong."
(1) Loss before interest, tax, depreciation and amortisation
- ends -
Enquiries:
Itaconix +1 (603) 775 4400
John R. Shaw / Laura Denner
Belvedere Communications +44 (0) 20 3687 2756
John West / Llew Angus
N+1 Singer +44 (0) 207 496 3000
Peter Steel / James Moat (Corporate
Finance)
Tom Salvesen (Corporate Broking)
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under the UK
version of article 7 of the Market Abuse Regulation (EU) No.
596/2014.
Notes to Editors
Itaconix develops and produces bio-based specialty polymers that
improve the safety, performance and sustainability of consumer and
industrial products, with technology and market leading positions
in non-phosphate detergents, odour control, and hair styling.
www.itaconix.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTEAKXKASEFEFA
(END) Dow Jones Newswires
July 27, 2021 02:00 ET (06:00 GMT)
Itaconix (LSE:ITX)
Historical Stock Chart
From Apr 2024 to May 2024
Itaconix (LSE:ITX)
Historical Stock Chart
From May 2023 to May 2024