I-Tech AB (publ) Interim report Q1 2022
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Summary of the period
” Increased profit and improved profitability in a quarter with unchanged net sales ”
• Net turnover for the first quarter amounted to 14 478 (14 458) kSEK, corresponding to an increase in turnover of 0% (7%). Operating profit/loss amounted to 333 (58) kSEK.
January to March 2022
• No important events occurred during the period.
Important events after the period
• No important events occurred after the period.
Financial Summary
| All amounts in TSEK | 2022 Jan-Mar | 2021 Jan-Mar | 2021 Jan-Dec | 2020 Jan-Dec |
| Net sales | 14 478 | 14 458 | 52 901 | 52 819 |
| Operating result | 333 | 58 | -4 683 | -5 167 |
| EBITDA | 2 250 | 2 034 | 3 234 | 3 600 |
| Net result | 511 | 415 | -2 648 | -4 806 |
| Operating cash flow | 3 185 | -302 | -1 698 | 5 388 |
| Equity at end of period | 105 449 | 107 017 | 104 938 | 106 602 |
| Cash and cash equivalents at end of period | 38 044 | 40 500 | 35 009 | 40 981 |
CEO Comments
The first quarter of the year shows an improved result at comparable revenue levels as for the corresponding quarter the year before. The increased revenue in combination with favourable exchange rates has strongly contributed to the improved operating profit.
Net sales amounted to 14,478 (14,458) kSEK, while operating profit increased to SEK 333 (58) kSEK, a result that shows a strong potential when returning to a volume growth curve. I am particularly pleased that we succeed in improving profitability with an EBITDA margin of 15.5%, despite the fact that volumes decreased somewhat during the quarter.
Demand for marine paint remains high, as does the general demand for technology that can save fuel and contribute to a more sustainable transport industry. It is a striking trend at reopening trade shows. A lot of focus is spent on ways to reach 50% or more CO2 reduction over time. The interest in Selektope also continues to increase and new product initiatives were highlighted in Asia in connection with the SeaJapan trade show. My assessment is that the industry is in principle fully focused on its long-term goals of reducing the climate footprint.
At the same time, our industry is struggling in headwinds in certain markets where prevailing circumstances give rise to material shortages or other production disruptions. In large urban cities in China, factories and ship yards have been closed for some time which has an impact both locally and globally.
In addition,costs continue to increase generally, and the geopolitical situation has an impact on the priorities throughout the industry. Although, we have successfully fulfilled our delivery commitments, above mentioned challenges brings actual sales down by around 9% (adjusted for currency effects) compared to the previous year. Variances in currencies and a broad customer mix in the newbuilding segment (Korea, Japan) have on the other hand contributed to bring forward one of our best results ever in a single quarter.
In summary, we try to navegate the fog of factors we cannot influence and focus on delivering products on time and to the right quality. The first quarter shows that this has indeed been the case and in addition the gross margin has increased to 55% (52%). Most important, however, is to continue the work of demonstrating that Selektope is the main alternative in the next generation of marine antifouling coatings. Coatings that control marine growth as well as reducing emissions to air and sea.
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, phone: +46 (0)8 463 83 00, email: certifiedadviser@penser.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
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 05-05-2022 08:00 CET.
