I-Tech AB (publ) Interim report Q1 2021

Summary of the period

”A strong quarter under difficult to assess market conditions”

• Net turnover for the period amounted to kSEK 14 458 (13 525), corresponding to an increase in turnover of 7% (119%). Operating profit/loss amounted to kSEK 58 (-984).

January to March 2021

• Chugoku Marine Paints expands their portfolio of Selektope®-containing antifouling coatings in Japan.

• I-Tech AB gives notice to Annual General Meeting.

• I-Tech AB publishes its Annual Report for 2020.

Important events after the period

• I-Tech AB receives a frame order worth 53 MSEK from Chugoku Marine Paints.

Financial Summary

CEO comments

The first quarter 2021 was our strongest first quarter so far and was crowned with a positive operating result. I am pleased to report that long-term sales and development processes are now beginning to yield results with an increasing number of customers, as well as creating an increasingly strong impact on our sales numbers. Net turnover rose to SEK 14.5 (13.8) million and operating profit amounted to kSEK 58 (-984).

Earlier in the quarter, our largest customer, Chugoku Marine Paints (CMP), announced the launch of new antifouling products in the Japanese market, in both the shipping and leisure boat markets. As of this year, Selektope® will be present in six of nine premium products in CMP’s portfolio in Japan. The continued expansion of the technology at CMP is still central to the continued development of I-Tech’s business and these are important signals that the strategy holds firm.

Step-by-step, we are building a broader customer base that includes the majority of the world’s leading marine coating manufacturers, albeit in early commercialisation stages and, thus, with significant quarterly volatility. The contribution to the company’s sales in the first quarter comes from six of the world’s nine leading marine coating manufacturers. Unnamed customers account for approximately 25% of sales during the quarter, while named customers account for 73%. The remaining part is derived from various development projects with commercial partners in both the leisure boat and shipping sectors.

Despite the positive broadening of our customer base, I see continued challenges in the industry during this year. I-Tech’s relatively high exposure to new construction projects in Asia is burdened by COVID, and CMP has indicated continued high inventory levels while waiting for new product launches to pave the way for the next wave of growth. Launches are delayed and slowed down due to continued restrictions in Japan and several other places in Asia. In addition, raw material prices are significantly higher for several integral components in our customers’ products. This also creates challenges, especially in the products where Selektope® is used in combination with copper oxide.

Regarding COVID, new risks re-emerge as India reports exceptionally high infection   rates.   We are preparing for potential new “lockdowns” by transferring stock with capital tie-up effects as a result, while at the same time securing delivery capacity for some time to come.

While respecting the fact that the year looks challenging based on what we see now, there are also important positive signals to note for our journey back to steadily increasing growth. The number of new construction orders for larger vessels increased markedly compared to the same period last year from the historically low levels then. This, together with planned and ongoing preparations for new product launches in both the new construction market and the maintenance market, creates confidence.

We reiterate the strong statement from the industry that emissions must be reduced, and that is where the hull plays a crucial role. I-Tech is well positioned with a broad customer base and proven technology performance in numerous paint formulations.

Finally, I focus on a quarter where the customer base has grown and matured to new levels and where our largest customer continues to broaden its range of products with Selektope®. Step by step the pieces fall in place for long-term growth even if various external factors continues to have a slowing effect.

Philip Chaabane, CEO

M: +46 73 910 37 08
E: 

ph*************@i-****.se

This information is information that I-Tech AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 08:00 CET on May 21, 2021.

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, phone: +46 (0)8 463 83 00, email: 

ce**************@pe****.se











. 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

I-Tech Q1_EN 2021 Final