Itaconix announces record revenue and improving gross margin for 2023, eyes diverse growth
London, UK
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April 16, 2024 07:13 AM Eastern Daylight Time
Itaconix PLC (AIM:ITX, OTCQB:ITXXF) CEO John Shaw tells Proactive's Stephen Gunnion the company achieved a record year in 2023 with a revenue of $7.9 million, marking a compound annual growth rate of over 40% across the last five years.
Shaw highlighted significant financial achievements, including an increase in gross profit margin to 31%. This improvement is strategic as it focuses on capturing value in polymer ingredients and formulations. The company's EBITDA losses are aligning with market expectations, supported by a successful fundraising event which enhances the company's financial flexibility for future growth.
Operational growth was mainly driven by the cleaning sector in North America and Europe, with continued expansion expected, particularly through new applications in beauty and hygiene. However, ongoing negotiations with major merchandisers have led to a revision of revenue expectations for 2024, now projected between $6 million and $6.5 million. This adjustment is part of a broader strategy to diversify customer and application bases, ensuring long-term profitability and value capture.
Looking ahead, Shaw said Itaconix plans to focus on higher-margin revenue streams, both from existing and new customers. The company is also investing in new products and processes, notably in leather and sustainable paint applications, leveraging recent technology upgrades. These initiatives are part of Itaconix's long-term goal to become a significant player in the specialty ingredients market, with aspirations to reach a $100 million revenue target.
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