Itaconix PLC (AIM:ITX, OTCQB:ITXXF), the plant-based polymer specialist, has said it still expects to meet its 2025 targets, despite growing uncertainty over trade policy in the United States following tariff threats from President Donald Trump.
The AIM-quoted company, which supplies sustainable ingredients used in household products such as laundry detergents, said recent US trade actions were likely to raise some of its production costs.
Even so, it expects to offset the impact through selective price rises and efforts to cut supply chain costs.
The company sources five key raw materials from Asia, two of which are exempt from reciprocal tariffs. Of the remaining three, two, including itaconic acid, are currently subject to import tariffs of less than 25%, while one low-volume ingredient is hit with a duty of more than 100%. Despite this, the company believes the overall effect on its cost base will be modest.
The timing of the new tariffs also works in Itaconix’s favour. The company built up inventories in 2024 to meet rising demand, meaning it can rely on pre-tariff stock for the coming months. That buffer, combined with price adjustments and operational efficiencies, is expected to preserve its profit margins.
Itaconix is also benefiting from other global trends. A stronger euro is boosting revenues from Europe when converted back into US dollars, reducing the need to raise prices there.
At the same time, tariffs on Chinese and Canadian imports are pushing some American retailers to rethink their supply chains, creating new opportunities for domestic suppliers like Itaconix.
The company said it had seen an increase in enquiries from both current and potential customers in certain regions, as brands look to diversify their sourcing.
While the board said it remained “confident” in its growth outlook and ability to maintain gross margins, it added that it was continuing to monitor trade developments, the wider economic environment and changes in customer ordering patterns.
The company’s cash position and balance sheet remain 'strong'.
CEO John Shaw said: "We are committed to using the value and affordability of our ingredients to enable our customers to succeed in the evolving trade landscape.
"I believe we are in a net position to continue making gains in the midst of uncertain trade developments, especially with the opportunities advancing within our SPARX programme."