Itaconix PLC (AIM:ITX, OTCQB:ITXXF) chief financial officer Laura Denner talked with Proactive about how the company is navigating the shifting landscape of global tariffs and what that means for its detergent polymers business in 2025.
The company is navigating newly reintroduced US-China tariffs with confidence, thanks to resilient demand and effective supply chain strategies, according to Denner.
She confirmed that the speciality polymers producer is “off to a very strong start” in 2025, buoyed by continued strength in the detergent sector.
While several industries have faced immediate cost impacts from US tariffs, Itaconix has some exposure but it remains limited.
Proactive: Laura, let's talk about the outlook for 2025. How is Itaconix positioned so far this year?
Laura Denner: “We are off to a very strong start in 2025. The year began with robust demand, and our operations have been running smoothly. We're continuing to see momentum across our core markets.”
Proactive: Tariffs are a growing concern this year. What changes have occurred recently and how do they affect Itaconix?
Laura Denner: “Yes, tariffs have been reintroduced and expanded. In February, a 10% tariff was placed on imports from China, followed by additional measures in March and April. While most of our raw materials have not been directly impacted, one minor ingredient has become more expensive.”
Proactive: Are you seeing this impact margins or overall production costs yet?
Laura Denner: “Not immediately — we haven’t felt a direct hit to margins yet. However, as we move through the year, we anticipate a 5–15% increase in production costs stemming from the tariffs.”
Proactive: How does that compare to past cost pressures — say, during COVID-19?
Laura Denner: “The good news is that our key feedstock, itaconic acid, is still priced below pandemic-era highs. That’s helped absorb some of the increases.”
Proactive: What measures are you taking to mitigate these cost increases?
Laura Denner: “We’re revisiting pricing with our customers, exploring domestic sourcing for select inputs, and renegotiating logistics contracts. The strengthening euro is also offsetting some of the cost pressure.”
Proactive: What’s your message to investors heading into the rest of 2025?
Laura Denner: “We remain confident. Despite the tariff headwinds, demand trends are strong and we’ve built flexibility into our supply chain. We're focused on preserving margins and continuing growth.”