CORRECTION: Higher currency adjusted growth than earlier noted – I-Tech AB (publ) Year-end report 2022

I-Tech AB (publ) issues a correction to the press release that was published yesterday, February 22. The correction is related to that the currency adjusted growth for quarter 4 amounts to 120.8% compared to 85.4% which was earlier noted. Fur the full year it amounts to 33.3% compared to earlier noted 25.8%.

Summary of the period
" Robust growth ends a successful year "

• Net sales during the period amounted to 30 222 (11 813) TSEK corresponding to a sales increase of 156 (6) %. Operating profit amounted to 5 420 (-2 386) TSEK.
• Net sales for the full year 2022 amounted to 83 631 (52 901) TSEK corresponding to a sales increase of 58 (0) %. The operating profit amounted to 12 024 (-4 683) TSEK.

January to December 2022

• I-Tech held its Annual General Meeting (AGM) in May. At the meeting, it was decided to approve a long-term incentive program with warrants for management and other employees. The program has been implemented with 100% subscription rate. At the AGM Dr Raouf Kattan was elected as a regular member of the board of directors alongside existing representatives, who all were re-elected.

Important events after the period

• No specific events occurred after the period.

Financial Summary

All amounts in TSEK 2022Oct-Dec 2021Oct-Dec 2022Jan-Dec 2021Jan-Dec
Net sales 30 222 11 813 83 631 52 901
Operating result 5 420 -2 386 12 024 -4 683
EBITDA 7 652 -402 20 045 3 234
Net result 4 356 -1 607 10 617 -2 648
Operating cash flow 4 292 5 259 20 125 -1 698
Equity at end of 116 035 104 939 116 035 104 939
period
Cash and cash 52 754 35 009 52 754 35 009
equivalents at end of
period

CEO Comments

The last quarter of the year is in a class of its own demonstrating our position as an established growth company. The sales overtook any previous levels by large margins driven by strong macro-trends that increases focus on high performing antifouling products. A segment in which Selektope is included in more and more product offerings by our customers. 

The turnover for the quarter reached a record level of 30.2 MSEK (11.8) which equals an increase of 156%. The organic growth (excluding currency effects) amounted to 120.8%. The operating profit amounted to 5.4 MSEK (-2.4). The strong performance in the quarter closed a successful year establishing ourselves as a growth company under increasing profitability albeit with an extra boost effect from currencies. Sales for the full year amounted to 83.6 MSEK (52.9), an increase of 58%. The organic growth reached 33.3% for the full year and the operating results amounted to 12.0 MSEK (4.7 MSEK). In addition, the EBITDA-margin raised from 6% to 24%.

The driving force for the quarter, and to a large extent for the year as such, comes from increased activity in Asia. Primarily, we take notice of a strong increase in Japan and Korea. Sales are reported to be both from newbuilding and maintenance segment with some overweight towards newbuilding. Our largest customer, Chugoku Marine Paints (CMP) is the main contributor to the growth but recurring sales to 5 other large paint companies also contribute.

The up-take in Japan is considerable and is linked to an increase of the many products launched on this market the past few years. Selektope is increasing its share in CMPs Japanese product portfolio. In addition, a second customer is growing in the Japanese market although from low levels. Growth is also considerable in Korea with its strong position in the new building segment. Here our sales increased by more than 100% compared to the previous year.

As previously addressed, the effects of tighter regulation on emissions to air within shipping is a top priority for operators, owners and charter companies. From January all vessels are required to report their actual carbon emissions to air under the Carbon Intensity Index (CII). In addition, demand is driven by energy efficiency guidelines related to ship design (EEXI Energy Efficency Existing Ship Index). Recently, it was also decided that the shipping industry is to be included in the EU-ETS (Emissions Trading System) starting 2024. The macro-trends are clearly closing in demonstrating the importance of investing in the best and most appropriate coating. For example, during the period a heavily fouled cruise vessel was denied port entry in various countries around Oceania due to excessive biofouling and risk of transferring invasive species.

In addition to the sustainability factors related to reducing greenhouse gas emissions to air throughout the value chain, regulators are pushing a stricter view of which technologies can be used. At the moment, Korea is in focus where regulators have launched a plan to reduce the biocidal loadings in coatings to around 1% of each active substance. The options to achieve this are clearly limited and to comply, Selektope represents a highly interesting enabler as it is effictive already at 0.1%. 

Following a few years of troublesome external factors we are, with support from a strong 2022, raising the bar in our outlook moving forward. Our ambition is to achieve a sustainable double digit profitable growth within our core business. Our judgement is that macro-trends combined with higher underlaying customer activity should support our ambition.

Philip Chaabane, CEO

M: +46 73 910 37 08
E: philip.chaabane@i-tech.se

About I-Tech AB

 I-Tech is a biotechnology company that has developed the product Selektope, an active agent that prevents barnacle attachment on submerged surfaces such as ships and boat hulls, but also other marine installations. By increasing the resistance to barnacle growth in marine paint systems (e.g. antifouling coatings), fuel and maintenance costs are reduced. I-Tech has obtained the necessary regulatory approvals for Selektope and has several of the world's largest manufacturers of marine antifouling coatings as customers. The company's share is listed for trading on Nasdaq First North Growth Market in Stockholm with Erik Penser Bank as Certified Adviser. For more information visit our website www.i-tech.se.

About Selektope®

Selektope introduces, for the first time, a pharmacological mode of action to combat barnacle settlement. By temporarily stimulating the octopamine receptor, the barnacle larvae's swimming behavior is activated and the organisms are deterred from the hull. These ground-breaking discoveries enable unrivalled power at very low concentrations, yet within the limits of rigorous risk assessments. Selektope® is an organic, non-metal compound with efficacy proven at 0.1% w/w. For more information visit our website www.selektope.com

This disclosure contains information that I-Tech is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 22-02-2023 08:00 CET

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