Itaconix PLC (AIM:ITX, OTCQB:ITXXF) has entered 2025 on a firm footing, saying it now has a more profitable client base and is trading in line with expectations following a year of reshaping the business.
The company, which makes plant-based polymers used in things like detergents, toothpaste and skincare, said it deliberately moved away from a major low-margin contract in North America.
As a result, full-year revenue for 2024 dropped to $6.5mn from $7.9mn in 2023. But the remaining business grew strongly, with sales from other customers rising 53.5%.
Gross profit margins improved to 34.7%, up from 31.0% the previous year, helped by better pricing, lower costs, and more efficient operations.
However, the adjusted loss before interest, tax and other charges widened to $1.8mn, compared with a $925,000 loss in 2023, as the company continued to invest in growth.
Chief executive John Shaw said: “We are entering 2025 with a stronger platform for growth, enhanced by the launch of our SPARX innovation program.” He added that Itaconix is now focusing on selling products for their performance and sustainability, across a more diverse customer base.
European revenues doubled in the year and now make up nearly a third of the total. Sales in hygiene rose 49.7%, while beauty revenue was up 24.0%. The company also launched a new detergent ingredient, Itaconix TSI 422, which it said offers early signs of commercial success and cost savings.
Itaconix ended the year with $6.7mn in cash and investments, down from $10mn a year earlier, giving it a decent runway to support ongoing product development and regulatory expansion. It also added regulatory approvals in markets such as Australia, New Zealand and South Korea.
“Current trading is in line with the board's expectations,” said Shaw. “The board remains confident in Itaconix's mid-term path to profitability and long-term revenue potential.”