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Shares of Itaconix PLC (LON: ITX) 30.9% after reporting a loss for the first six months of 2021 driven by changing customer requirements, especially in the detergents and personal care segments.
The company that specialises in creating sustainable plant-based polymers for use in consumer products noted that the drop in customer orders accelerated towards the end of the six months as the coronavirus lockdown measure affected consumer behaviour.
Itaconix generated $1.4 million in revenues during H1, a 26% improvement to the figures reported in a similar period last year, but the figures represented a 36% decline from the revenues generated in H2 2020.
The company noted significant growth in demand for odour control products from customers in Europe, North America and Asia. As a result, the firm plans to introduce a new odour control product to capitalise on the rising demand from its customers.
Itaconix is also working on new detergent products based on its proprietary Itaconix® TSI™, promising to unveil new formulations and brands by the end of 2021.
The company’s personal care division registered the most significant revenue decline. However, the shipments done in H2 2020 were more than adequate to meet customer demand during the second wave of COVID-19 lockdowns in Europe and North America.
Itaconix also reported higher raw material and delivery costs as its suppliers struggled with shipping delays due to the coronavirus restrictions.
John Shaw, Itaconix’s CEO, commented: “We continue to make significant progress capitalising on the revenue potential in every household for our plant-based technologies. Supply chain delays with both our customers and our suppliers are causing some short-term issues, but our revenue opportunities are growing through the increasing recognition of the value of our ingredients in sustainable consumer products and through new additions to our offering of plant-based products. Underlying consumer demand for these products also remains strong.”
*This is not investment advice.
Itaconix share price.
Itaconix shares plunged 30.9% to trade at 7.53p, falling from Monday’s closing price of 10.9p.
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