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It's a bit like during covid times ITX did really well with ramped up cleaning volumes

I did think there was some strange market maker price action in the run up to the ITX investor update. Most likely tariff fear driven, BUT as we now know with full benefit of hindsight, tariffs could be near to neutral on ITX thankfully (eg Canada supply vol. competition limitation v's US manufacturers benefiting AND limited P&L cost impacts since most costs are US centric costs). Not major concern of the company as per John. 😀. This dynamic means that the SP may have been artificially depressed in days leading to the update. I recall some lucky character benefited on some cheap share purchases- Shorty? So, result is SP should gradually lift up or correct as continuing Q1 2025 strong performance news hits home with investors and large immunity from Trump impacts. As I said most product supply is fixed and locked into routine brands that may ratchet or increase if US consumers reduce discretionary spending in restaurants and going out partying in worse case of a recession and peaking inflation and cost of living issues. So in fact we could be a real winner here amongst a field of otherwise affected stocks.

Hi AJP - yes they have been sensibly building EU stock to fulfill demand growth I understand from yesterday given ratio heading to 30% of global sales demand as non-US/Canada.

PS - I noticed like another poster Rivaldo that the ADVFN chat room was not aware of key Broker update and tariff non-issue news direct from John's mouth yesterday on his Proactive video so re-pasted some key content over there - we all need to be on the same page as its confusing if all shareholders do not have the latest intel. and news.

Yes AJP - I did notice the toothpaste reference, but unaware of ITX supply here! Called out a major new diversification add-on in the development pipeline (2026)- so no idea what that will be. Also, they made a big thing of the v. low relative capital intensity of the ITX manufacturing plant - in other words all other things constant offers greater margin potential at high or full utilisation. Thx for the tonnage update - keep tracking please

John stated yesterday that the first quarter of 2025 has started strongly so at this point something near to full year $10m revenues appears to be very achievable based on the existing growing client portfolio and near term launches. Broker is aligned even with known market forces and uncertainties - however good for us is that most of ITX's product supply is defensive and protected in nature (e.g heavy end client investment in brand formulations and strategic positioning/promotion, so difficult to switch out of ITX in the medium to long term even if they wanted to!

Good delivery today - ITX is now a fully fledged walking and talking commercial spec. chem. company with really strong IP. It's no longer just an R&D chemistry platform, in fact it's now both in one. Inflexion point just reached on its own evolution pathway to profitability.

There you go during investor presentation. Patents are the gold mine here above and beyond the visible earnings and revenues that everyone focuses on. This vast IP messaging if leveraged with investors is potentially massive with new investors inbound. Its defensive and diversifying, simple.

Some other market commentators coming in - https://www.tipranks.com/news/company-announcements/itaconix-strengthens-market-position-with-strategic-shifts-and-innovation

Yes, I totally agree Smart on balance when viewed across the total ITX global business, US manufacturing footprint and supply chain, we appear to be largely immune or around neutral on global Tariff impacts. Whilst N America is largest revenue contributor and prospect for Canada to be at a competitive disadvantage due to ITX being a 'captive MAGA' ringfenced beneficiary - we do manufacture in the US and could get some windfall advantages from Canada but with some equal balancing offsets in EU. So the prior share price decline due to investor concerns of Tariff impacts are definitely over-cooked and should right-size the SP in coming days is my take. Overall, the company is on track as before almost c.$10m rev. this year end then profit transition soon after. good stuff

Interestingly on Alpha-sense all main Directors were called out just prior to today's announcements - I've pasted one example re: Paul LeBlanc Non-Executive Director Itaconix Board member in case you want to review - Paul Leblanc has 25 years' experience

Highlights

25+ years growing international manufacturing business

CFO and Treasurer of Bemis Associates, Inc.

Global oversight for financial planning across 10+ countries.

Strategic financial advisor ensuring fiscal responsibility.

University of Massachusetts Dartmouth, MBA

Thomas College, BS Accounting

A distinguished member of Itaconix's Board of Directors since January 2023, Paul LeBlanc brings over 25 years of invaluable experience in international manufacturing businesses. Serving as the Audit Committee Chair and contributing his financial acumen, Paul plays a crucial role in ensuring Itaconix's fiscal responsibility and strategic financial planning. Currently, the CFO and Treasurer at Bemis Associates, Inc., a global adhesives manufacturing company, Paul's comprehensive understanding of financial audits, executive management, and team leadership enriches the board's collective expertise.

As a board member, Paul LeBlanc actively participates in shaping Itaconix's financial trajectory, fostering sustainability, and steering the company towards continued success. His commitment to excellence and strategic financial oversight aligns seamlessly with Itaconix's mission, reinforcing the brand's dedication to innovation, performance, and sustainable practices in the plant-based polymers industry.

Some interesting granular details to call out within today's Broker report (and RNS now I had time for a full review):

• REVENUE GROWTH SEGMENTS 2025/26F: Broker view “We continue to see Hygiene and Beauty segment as major long-term drivers for Itaconix growth, both in existing applications and with new polymer families” - This year, 2025 - Hygiene (Zinador, Velafresh) growth at 94%; Beauty (Velasoft, Amaze SP) growth at 83%;

• REVENUES EUROPE: Cleaning grew by 100% in FY2024 and now makes up almost 30% of global sales (major geographic re-balancing of clients/derisking portfolio);

• FUTURE DIVERSIFICATION CHANNELS: 2026F – new diversification product applications anticipated to make up 11% of global sales (beyond cleaning, hygiene and beauty);

• GROSS MARGIN: 2025F & 2026F gross margin expected to grow from 35% to 38% (+3% above 2024), even with current tariff impacts worked-in;

• CAPEX: FY25+26F – Total capex of $2.85m – again this is big investment for plant re-tooling and replacement / enhancement spending – seems bullish for growth to support material plant op. capacity and revenue uptick;

• WC: Working capital growth well below revenue growth – op. / financial efficiency

• BS CASH: Net cash at end of FY 2026F of $2.6m (+21 months) – taking us beyond breakeven so no assumed additional cash call / dilution is the Broker assumption;

• VALAUTION MULTIPLES: Currently EV/Sales (x) of only 1.7x sales for current year at moment, so ITX appears to be materially undervalued given the presence of major off balance sheet IP assets (16 patent families covering proprietary processes, compositions and applications) that ringfence the itaconate polymerisation technology platform. In my mind this collective patent estate is the real gold stored in the ITX safe that underpins the large upside value of ITX in near term;

• TARGET PRICE: Broker : “Our unchanged price target of 325p is based on a combination of EV/sales multiples for perceived peers and a potential take-out value.” - The latter has not been described quite like this before I don’t believe but given the above you can see why – protected growth with margin expansion possibilities for larger business combination.

I totally agree Smart - fantastic news re: very manageable tariff impacts going forwards......Remember that most of the COGS costs ("Cost of Good Sold" e.g. US manufacturing plant costs/energy/depreciation etc, major US human plant op resource costs and all non-China supplies) are NOT directly impacted by tariffs. In other words I believe John is saying that China's raw materials tariff exposure (say c.2% of sales for sake of argument), can be easily managed through:

1. Manufacturing efficiencies - ongoing as plant utilisation increases at say, c.50% pa you can reduce your cost per unit of production to offset

2. Seeking better selling prices from suppliers as volumes purchased ramp up

3. Partial offsetting pass-through costs to end customers - raising sales prices selectively and slightly over time and especially applied to the more value added / functionality ingredient segments

For me, what is of really important is 'no mention' of needing alternative supplier strategies - why - its deemed relatively unimportant given above factors.

Alex Brooks | Analyst | Canaccord Genuity Ltd (UK) - the actual summary narrative is below:

TITLE: “Robust outlook for 2025”

Price target – 325p (unchanged)

"Itaconix has this morning announced its final FY24 results combined with an update on 2025 trading. 2024 results are in line with existing guidance, and we continue to expect a c.50% increase in revenue this year, broadly in line with the c.53% increase achieved in 2024 outside the terminated low-margin merchandiser relationship. Gross margin in 2024 was up materially, at 35% from 31%, indicating the effect of this termination and the attractiveness of the product to end customers. Cash conversion of sales remains good, with a modest growth in working capital and limited capex. Cash at year-end of $7mn remains a solid position, with cash burn rapidly diminishing. Itaconix has been highly successful through 2024 in diversifying its revenue base and in adding new customers in new territories, notably in Europe, as well as successfully launching further products. Current trading is in line with the Board's expectations and we are making only minor changes to our forecasts. We continue to expect positive EBITDA for 2026 as a whole and potentially close-to-positive as early as 2H2025 given normal seasonal weighting. We remain BUYers with an unchanged target of 325p.

Changes to forecasts: housekeeping We are making only de minimus changes to forecasts, as results are in line with existing guidance and there is no change to the outlook. We note the group is now close to its target 35% gross margin and we expect an increased focus on revenue growth and successful drop-through of that revenue to profitability going into 2025."

I agree 👍

Let's hope my email did its trick - more timely guidance and urgent need to right-size the ITX mkt cap after a period of being excessively oversold. starting Monday!

Thx Smart - had not noticed this new PR company alongside. Web site is impressive and looks just what ITX have been lacking!

Market makers early April fools joke. 30 shares at 112p shifting mkt by 10% They know they need some serious shares since demand will puts stripe supply on Monday for sure :-)

Think people are keeping powder dry for next weeks big show and tell events (RNS, Investor Q&A and follow on proactive interviews)

Thx wacca, yes a long awaited and very interesting day for all ITX shareholders re: company performance update and medium term trajectory/ new opportunities news. Can't wait.

Thanks AJP, could not locate item easily - are you able to summarise context? Great if our clients are patenting formulations with ITX ingredients in them, especially if it's a newish one.