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Chemicals

Iofina notches up another year of record sales

Iofina PLC (AIM:IOF, OTC:IOFNF) posted another record for annual revenues in 2023 with sales also up by more than 15% in the current year.

Revenue in the twelve months to the end of 2023 topped $50.0m (2022: $42.2m) for the first time as a new plant helped the iodine-from-brine extraction specialist notch up its sixth year in a row of higher sales.

AIM-listed Iofina said the improved sales helped to offset “significantly” higher input costs and the impact of inflation generally with underlying profits coming in at US$10.8 million (US11.5 million, or US$8.3 million (US$10 million) pre-tax.

So far in 2024, iodine prices have stayed high at around the mid to upper sixties $ per kg, noted Iofina, and are expected to remain at these levels into the second half.

A new extraction plant, IO#10 is currently on schedule and expected to be operational in the third quarter while potential sites for IO#11 have also been identified

Tom Becker, chief executive, said: "Iofina delivered another strong year across the business, which culminated in record sales of just over $50m.

"The business has continued to generate cash and further reduced its debt level, moving into a net cash position of $1.2m.

“We have made important investments for growth, in particular the completion and switch on of IO#9 in June 2023 as well as further R&D within our derivatives business to introduce new products to our customers.

"In Q4 2023, we announced the agreement was signed for IO#10 and we remain on track to have this in operation in Q3 2024.

"Like IO#9, the new plant is expected to add 100MT-150MT of crystalline iodine per annum.

"2024 has started well, with Q1 production up 15.5% year-on-year as recently announced, and iodine prices continue to remain at their higher, favourable levels."

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