Itaconix (ITX) , a producer of sustainable plant-based polymers, announced its unaudited interim results for the six months ended 30 June 2023, citing a fifth consecutive year of record first-half revenues on the back of a rapidly expanding customer base. 

First half revenues stood at $4.0 million, 32% higher than the previous period due to recurring and new orders from its growing customer base. Gross profits were $1.1 million, a 49% increase over the first half of 2022 as the gross profit margin improved to 28.1% from 26.6% in 2022. This improvement was achieved with price increases, lower transportation costs, and favorable USD exchange rates. Itaconix anticipates further margin growth in H2 2023.

As a result, adjusted EBITDA losses were reduced to $0.4 million, compared to $0.6 million for H1 2022, while the pre-tax loss for the period was $0.7 million, down from $1.1 million in H1 2022. 

Following an $11.5 million fundraise in February 2023, cash at the end of the period stood at $10.9 million, up from $0.6 million on December 31, 2022, leaving it well funded to reach profitablity on the current growth trajectory.

Green cleaning demand has continued to pickup up pace, with the company's cleaning segment responsible for $3.7 million of revenues. Its polymer used to make-up non-phosphate dishwashing detergents has helped its customer gain increasing market share in the US and Europe. 

Notably, Itaconix also achieved R&D breakthroughs that are key stepping stones toward the company's goal of introducing a more competitive product with broader market appeal in late 2024 or 2025.

 

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Itaconix designs and manufactures polymers that are used in a range of consumer products, including laundry detergents, auto dishwasher pods, odour management products, and hair styling.

The company’s aim is to help the world shift away from chemicals that have poor toxicity profiles and which are made from fossil-based feedstocks, and instead use plant-based ingredients that are more sustainable, while also delivering cost advantages to its customers. 

Itaconic acid is a material produced in nature that can replace synthetic chemistries such as acrylic acid and styrene when made into a polymer. The Itaconix technology platform currently has 16 families of patents and patent applications that protect processes, compositions, or uses for polymers of itaconic acid. This type of polymer boasts a range of advantages, such as its versatility - itaconic acid works as the building blocks for large numbers of compounds - as well as being safe and environmentally friendly.

Itaconix currently has a $2.3 billion addressable market for its ingredients within a $20 billion potential for its broader technology platform as it explorers other market opportunities. Looking ahead, Itaconix said it is on course to deliver full-year results in line with expectations, with its alignment to serving sustainable customer needs setting it up well for growth over the longer-term.

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