Materials innovator Itaconix (ITX) said in a trading update today that it had delivered record revenues of $7.9m in 2023, a 40.6% on the previous year and in line with expectations. That was driven by strong increases in both the US, which saw sales climb 35.6% to $6.9 million, and its smaller European operation, which climbed 89.3% to $1m. 

The bulk of revenues came from its cleaning solutions, which grew 43.7% to $7.2m as existing North American customers increased volumes and it secured new accounts in Europe. Thanks to their low toxicity, its plant-based solutions are seeing increased demand from detergent manufacturers across a range of industrial and domestic applications, including laundry detergents, vehicle washing products, and industrial and household cleaners.

The company is also starting to gain traction in the hygiene and beauty segment, with sales of its odour-neutralising solutions up almost a third to $0.6m, while new product development including new superabsorbent polymers and ingredients for paints and leather is expected to open up new revenue streams. As well as improving sustainability credentials, the company’s itaconic acid derivatives improve both performance and cost. 

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The company ended the year with $10m in net cash and investments, up from $0.6m after a successful fundraise early in 2023, leaving it well funded to capitalise on the major opportunities opening up for Itaconix.

Demand for sustainable alternatives to commonly used materials is reshaping the market. Traditional materials like chemicals and plastics carry huge environmental costs, and now, in light of a more fragile environmental situation than ever, this is prompting an urgent need for eco-friendly solutions. 

Chemical pollution of rivers and landfills is also a significant source of harm to ecosystem and are being increasing linked to long-term health risks, often linked to cancer and respiratory problems – problems which Itaconix’s water soluble solutions go some way to addressing. 

That’s demonstrated in the company’s 55% CAGR over the last five years and suggests a sales target of $12.8m by 2025 is well within reach, at which point the company is expected to become profitable on an EBITDA basis.

Itaconix's shares jumped 31% on the news.