Itaconix PLC (AIM:ITX, OTCQB:ITXXF) has reiterated its financial targets for 2024, expecting revenues between $6 million and $6.5 million, with a gross profit margin of 36%.
For the first half of 2024, the sustainable plant-based polymers specialist reported revenues of $2.8 million, down from $4.0 million in in the same period last year, due to a strategic decision to decline low-margin business.
Gross profit margins improved to over 38%, reflecting a focus on profitability. The company diversified its revenue base with new accounts in Europe for dish detergent, sustainable leather, and mineral processing. It launched two new products in April: Itaconix TSI 422 and Itaconix ONZ 405.
The company's financial position remains strong, with $8.0 million in cash and investments as of June 30, allowing continued investment in new product development and facility upgrades.
Its biodegradable water-soluble polymers have received new regulatory approvals in China, Australia, and New Zealand, which are expected to generate additional revenue opportunities.
"We remain highly optimistic about our future and commercial progress," said CEO John Shaw.
"We are securing new detergent customers in Europe and North America and expanding the use of our performance ingredients into new applications.
"These efforts are focused on building a more diverse, profitable, and sustainable revenue base to achieve our goal of being a large and profitable specialty ingredient company."