Itaconix (ITX) , a producer of sustainable plant-based polymers, announced preliminary results for the year ended December 31, 2023 (FY23).
Itaconix saw a 63.9% increase in gross profits, driven by higher volumes and margins, and improved production utilisation. Revenues rose to US$7.9m in FY23 from US$5.6m in FY22, representing a CAGR of 57.2% since 2019. Revenues rose in all segments of ITX's end market, but the primary driver was the cleaning segment in North America and Europe. Notably, the group's TSI 322 product found use in novel non-phosphate dishwashing detergents.
Aside from cleaning, ITX saw strong momentum in the hair care segment with its ingredients gaining wider recognition for their effectiveness and high plant-based content. These ingredients are sold through Nouryon as Amaze SP and by Itaconix as VELASOFT NE 100. In hygiene, the company continued to move polymers for odour neutralisation, sold through Croda as ZINADOR 22L and 35L, and by Itaconix as VELAFRESH ZP20 and ZP30.
In terms of balance sheet and management, ITX raised US$12.7m in February 2023, and completed a 50:1 share consolidation in August 2023. Paul LeBlanc was appointed as independent Non-Executive Director and Chair of the Audit Committee. LeBlanc was formerly CFO and Treasurer of Bemis Associates. Post-period end, Jonathan Brooks was appointed as independent Non-Executive Director and Chair of the Nomination Committee.
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Itaconix delivers another year of growth, continuing the streak of 57.2% CAGR revenue growth since 2019. Revenues were in line with market expectations at US$7.9m, up 40.5% year-on-year on the back of higher-margin new and recurring orders. Gross profit margins were up to 31% from 26.6% last year, and losses continued to shrink to (US$925m), down from (US$1.4m) last year and (US$2.46m) in 2019 as the company moves steadily toward profitability.
Following last year's US$12.7m fundraise, ITX's balance sheet has allowed it to invest in long-term growth, its technology platform, and product development. Aside from the abovementioned developments in the cleaning, hair care and hygiene segments, ITX polymers generated growing interest in smaller and higher-margin segments, such as leather tanning, superabsorbents, and artist paints. ITX's plant-based polymers are often cheaper to produce than existing synthetic solutions. Additionally, ITX is an attractive alternative for companies seeking to meet sustainability goals.
Itaconix has a US$2.3bn addressable market for its ingredients within a US$20bn potential for its broader technology platform as it explores new market opportunities. With strong momentum in recurring revenues and margins, the company is well-positioned for continued growth and firmly on the path to profitability.
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