IP: Itaconix plc – Half-year results as of June 30, 2021

Itaconix (AIM: ITX) (OTCQB: ITXXF), one of the leading innovators in the field of specialty plant-based polymers used as essential ingredients in everyday consumer products, is pleased to announce its non-intermediate results. audited for the six-month period ended June 30, 2021.

John R. Shaw, CEO of Itaconix, commented:

“We continue to build a diverse base of consumer products that rely on our ingredients to meet customer demands for performance, price and sustainability. Progress with new and recurring orders from our growing customer base has increased overall revenues compared to the first half of 2020 and expanded the use of our plant-based technology platform in the global low-carbon economy. I’m especially pleased that a major brand has set a new standard for bio-based content by launching a new North American dishwashing detergent based on Itaconix® TSI ™ 322 in February. “

Strong points

· H1 revenue of $ 1.4 million was 26% higher than H1 2020. Due to customer ordering habits, this H1 revenue was 36% lower than H1 2020.

· Gross profit was $ 0.5 million, a 30% increase from the first half of 2020 and a 30% decrease from the second half of 2020.

· Gross profit margin was 38% versus 35% for full year 2020, remaining in line with company expectations for a specialty ingredients company.

· Adjusted EBITDA1 was a loss of $ 0.7 million, compared to a loss of $ 0.6 million for the same period in 2020, reflecting some increase in capital spending on new products and applications.

· The pre-tax loss was $ 0.2 million, which represents a decrease of 78% from the losses of $ 0.8 million in the first and second half of 2020. The revaluation of the liability for contingent consideration as a non-cash item contributed $ 0.5 million to this decrease. The forgiveness of the US PPP loan for government aid from Covid-19 contributed an additional $ 0.2 million to this decline.

· Cash and cash equivalents as at June 30, 2021 were $ 1.4 million, compared to $ 1.4 million as at December 31, 2020.

· In June 2021, the Company completed a capital increase with gross proceeds of $ 1.5 million to finance general working capital requirements and the development of new products.

· The Company received the Green Economy Mark from the London Stock Exchange in recognition of its contribution to the global green economy.

Commenting on the outlook, John R. Shaw, CEO added:

“Our revenue opportunities continue to grow in line with the growing recognition of the role our ingredients play in meeting the demands of brands and retailers for more sustainable consumer products. Order volumes are recovering from the turmoil we experienced in the first half of the year, but we expect some further market volatility through the first half of next year. The underlying consumer demand for our products and the development of new applications are generating new customers and revenue potential for 2022. ”

1Adjusted EBITDA is defined and reconciled with operating loss in note 4 of the interim report.

For more information, please contact:

Itaconix plc

+1 603 775-4400

John R. Shaw / Laura Denner

Belvédère Communications

+44 (0) 20 3687 2756

John West / Llew Angus

finnCap

+44 (0) 20 7220 0500

Ed Frisby / Abigail Kelly / Milesh Hindocha (Corporate Finance)

Andrew Burdis / Sunila de Silva (ECM)

About Itaconix

Itaconix uses its proprietary plant-based polymer technology platform to produce and sell specialty ingredients that improve the safety, performance and durability of consumer products. The Company’s current ingredients enable and drive new generations of products in the areas of detergents, hygiene and hair care. Itaconix’s contributions to the global low-carbon economy are recognized by the Green Economy Mark of the London Stock Exchange.

www.itaconix.com

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