Iofina (LON: IOF), the AIM-listed iodine producer, said Adjusted EBITDA (underlying earnings before interest, tax, depreciation and amortisation) rose 103% to $6.6 million in the six months to 30 June, as record crystalline iodine production converted growth into cash generation.
The group published the results via RNS early on Monday.
Shares in Iofina were trading around 53.5p on Monday morning, up from Friday’s close of 51.0p, a rise of roughly 4.9% on the day, as investors welcomed the swing from net debt to net cash and the doubling in half-year profitability.
Revenue reached $31.3 million, up 7% on the $29.2 million reported in the same period last year, a record for the first half. Crystalline iodine production climbed 29% to 393.3 tonnes, from 305.5 tonnes, beating the company’s 385-tonne target, on continued demand and firm prices. Crystalline iodine sales rose 22% in value to $16.0 million, with the average realised price broadly flat at $74.69 per kilogram against $74.27 a year earlier.
Gross profit jumped 62% to $10.2 million, 33% of sales, up from 22% a year earlier, and operating profit nearly trebled to $4.9 million.
The cash conversion also reshaped the balance sheet: Iofina swung from net debt of $0.8 million a year earlier to net cash of $7.2 million at 30 June, with cash rising to $12.9 million from $6.4 million. Capital spending of $5.8 million, mostly on the new IO#12 plant, was funded entirely from operating cash flow.
Chief executive Tom Becker said:
The Group delivered another strong first half performance, with Adjusted EBITDA up over 100% as production growth is now converting into stronger earnings and cash generation. Crystalline iodine sales grew by 22% and total revenue by 7%, supported by the ongoing demand for our products in a healthy iodine market.
Tom Becker, Iofina
IO#12, the group’s newest extraction plant, is on track to start production near the end of the third quarter, adding up to 220 tonnes of annualised output. Two more plants, IO#13 and IO#14, are due online by mid-2027 as Iofina targets 2,000 tonnes of annual capacity. The board said it remains on track to meet full-year expectations, with second-half production guided at 460 to 485 tonnes of crystalline iodine.