26th Jan 2022 14:52
(Alliance News) - Itaconix PLC on Wednesday said it expects reduced full-year revenue, due to market disruptions and stated that it anticipates this market volatility to continue, leading to a drop in its share price.
Shares were down 16% at 4.20 pence each on Wednesday afternoon in London.
The London-based speciality polymers firm expects to report revenue of USD2.6 million and net cash of USD700,000 for 2021.
This result would be in line with expectations, it added.
Nevertheless, it represents a 21% decrease from revenue of USD3.3 million the year prior and a 50% fall from year-end net cash of USD1.4 million in 2020.
Itaconix continued that order volumes for Itaconix cleaning ingredients have recovered at the end of the year from the earlier market disruptions.
However, the company still expects full-year cleaning revenue to total USD1.8 million for 2021, down 44% compared to USD2.6 million the year before.
Itaconix added that beauty revenue also started to recover in late 2021 from a large customer inventory build in late 2020. It expects revenue of USD200,000 for this segment, down 50% from USD400,000 a year ago.
Nonetheless, growth for hygiene ingredients business exceeded Itaconix's expectations.
The company now expects revenue of USD700,000 in this segment, a 70% increase from revenue of USD300,000 posted the year before.
"In addition, the company achieved significant customer, application, and product development milestones to enter 2022 with new addressable markets and revenue potential for its Velafresh hygiene products in personal care and pet care," Itaconix stated.
The speciality polymers firm still warned of the increased delivery times and higher costs for key raw materials continue. It also said that it expects overall market volatility to continue in 2022.
However, the company said that it implemented selective price increases and will continue to manage stocks of raw materials and finished goods to counter some of these headwinds.
By Abby Amoakuh; [email protected]
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