Record H1 revenue and executing growth plans

Iofina plc, specialists in the exploration and production of iodine and manufacturers of specialty chemical products, is pleased to announce its unaudited Interim Results for the six months ended 30 June 2024 (the “Period”).

H1 2024 Key financials:

• Record H1 revenue of $26.0m
• Cost of Sales of $20.8m
• Gross Profit of $5.2m
• Adjusted EBITDA of $2.3m
• Operating Profit of $1.1m
• Profit Before Tax of $1.1m
• Net Cash of $1.1m

Business Highlights:

Revenue growth and improved net cash position

• Strong product demand and higher iodine production led to H1 2024 revenue growth of 7% compared to H1 2023
• Secured new brine water agreements for two existing IOsorb® plants that provide stability of supply
• Net cash was $1.1m (H1 2023: $0.2m, FY 2023: $1.2m), excluding lease liabilities and after capex of $4.7m (H1 2023: $3.7m), mainly on IO#10 and investment of $0.9m in Iofina Chemical
• Sustained a strong cash position of $5.7m (H1 2023: $6.3m, FY 2023: $6.5m) after higher investment expenditure in the Period
• Well-placed to finance our ongoing operational investment program through a strong cash position and a renewed loan facility, which was increased to $10m

Iodine production and sales

• Produced 276.1 metric tonnes (“MT”) of crystalline iodine during H1 2024, a 14.3% increase and within the Company’s target range
• Crystalline iodine sales grew by 13% to 191MT, reflecting an ongoing strong market demand
• The average prices realised (100% iodine equivalent) for sales of crystalline iodine fell by 7% to $66.84 against the comparable period (H1 2023: $71.53) but were similar to the prices experienced in H2 2023
• Iodine derivative sales were up 5% to $7.9m (H1 2023: $7.5m), whilst non-iodine derivatives rose 4% to $4.7m (H1 2023: $4.5m)

Outlook

• With IO#10 fully commissioned, the Group expects to produce 355-380 MT of crystalline iodine in H2 2024, with total production for 2024 being dependent on the rate of ramp-up of IO#10
• Current crystalline iodine spot price has marginally strengthened in the range of the upper sixties USD per kg and above
• The Board believes the Group remains on track to meet market expectations for the full year

Commenting on today’s results, Dr. Tom Becker, President and CEO stated:

“The Group has delivered a robust first half performance, with sustained demand for our products and increased production leading to a 7% increase in revenue, despite the average realised selling price of iodine being 7% lower than reported for H1 2023. The Group has continued to generate strong cash flows, with its net cash position improving to $1.1m.

“Looking ahead, the completion of IO#10 is anticipated to add a further 100-150 MT of annual iodine production capacity. The new plant will contribute to production in the remaining months of 2024, with the total crystalline iodine production range expected to be 355-380 MT in H2 2024. Negotiations for IO#11 are continuing to advance well, and we hope to update on an agreement very soon.

“As well as our commitment to securing sites for new plants and ongoing product R&D, new investment has been made in our marketing and sales team, including targeted hires and upgrades to our website and other digital marketing channels, to help facilitate and drive sales directly to Iofina Chemical. We have built a stronger platform for accelerated growth, and we look forward to reporting on further progress in due course.”

In the video below, President & CEO Tom Becker outlines iofina’s business including the increasing global demand for iodine