Revenue up 18.5% to $50 million

Iofina plc, specialists in the exploration and production of iodine and manufacturers of specialty chemical products, announces its audited full-year results for the 12 months to 31 December 2023 (the “Period”).

Higher sales of crystalline iodine drive 18.5% revenue growth, profits resilient despite higher inflation and input costs:

• Revenue of $50.0m (2022: $42.2m); Sixth successive year of revenue growth
• Gross profit of $15.7m (2022: $15.8m)
• Adjusted EBITDA1 of $10.8m (2022: $11.5m)
• Operating profit of $8.6m (2022: $9.6m)
• Profit before tax of $8.3m (2022: $10.0m)

Strong balance sheet and swing to net cash position:

• Cash of $6.5m at year-end up 10.0% (2022: $5.9m)
• Further debt reduction moved the Company into a net cash position of $1.2m

Investing for growth:

• Capital investment into chemical and new iodine plants doubled to $6.2m (2022: $3.1m)
• Signed agreement in Q4 2023 for IO#10

2024 so far:

• Production of 123.7 MT of crystalline iodine in Q1 from Iofina’s six IOsorb® plants
• The iodine global spot price started around the mid to upper sixties $ per kg and prices are expected to stay at these levels into the second half of 2024
• IO#10 is currently on schedule and expected to be operational in Q3 2024
• Potential sites for IO#11 identified
• Renewal of iodide-rich brine water supply agreements for two IOsorb® plants

Refer to the Consolidated Statement of Comprehensive Income for calculation

Commenting, President and CEO, Dr. Tom Becker, stated:

“Iofina delivered another strong year across the business, which culminated in record sales of just over $50m. Despite the impact of sustained inflation and higher input costs during 2023, profits remained resilient and were only marginally down on last year. The business has continued to generate cash and further reduced its debt level, moving into a net cash position of $1.2m. We have made important investments for growth, in particular the completion and switch on of IO#9 in June 2023 as well as further R&D within our derivatives business to introduce new products to our customers.

“In Q4 2023, we announced the agreement was signed for IO#10 and we remain on track to have this in operation in Q3 2024. Like IO#9, the new plant is expected to add 100MT-150MT of crystalline iodine per annum. We are also pleased that negotiations are progressing well with several interested parties for IO#11, with potential sites identified. Outside of the construction of new IOsorb® plants, the Board continues to examine other potential growth projects that complement Iofina’s existing skill set and range of products, which may present cross-selling opportunities.

“2024 has started well, with Q1 production up 15.5% year-on-year as recently announced, and iodine prices continue to remain at their higher, favourable levels. We have also confirmed the long-term agreement to supply two IOsorb® plants with iodide-rich brine water with the current supplier. The security in the new agreement ensures the Company can keep on track with its strategy in aiming to increase production from our existing plants and to match the increased production with additional sales.”

In the video below, President & CEO Tom Becker outlines iofina’s business including the increasing global demand for iodine