I-Tech (ITECH) Q3 2024 earnings summary

Executive summary

• Net sales in Q3 2024 reached SEK 40.8 million, up 27% year-over-year, with operating profit at SEK 9.4 million, reflecting strong demand and customer diversification.

• CEO Markus Jönsson appointed in September 2024, bringing experience in specialty chemicals and business development.

• The company operates in the antifouling coatings market for ships, with Selektope as its key product.

• Over one-third of sales now come from a diversified customer base, with notable growth from PPG and Kansai Paint.

• Recognized as a DI Gasell company for growth and profitability.

Financial highlights

• Q3 2024 net sales: SEK 40.8 million (SEK 32.2 million in Q3 2023), operating profit: SEK 9.4 million (SEK 8.1 million), net result: SEK 7.8 million (SEK 6.8 million).

• Gross margin stable at 52% for Q3 2024.

• Cash and cash equivalents at period end: SEK 94.3 million; equity: SEK 143.1 million.

• Net working capital nearly doubled since year-end 2023 due to prepayments and increased receivables.

• Cash flow from operating activities for Q3: SEK 10.5 million.

Outlook and guidance

• Favorable market conditions expected to continue, driven by shipping industry energy transition and increased demand.

• Focus on expanding customer base and product penetration, especially in Asia and the dry docking segment.

• Regulatory approval processes ongoing in the EU, USA, New Zealand, and Malaysia, with Malaysia approval expected in H1 2025.

• Regulatory process in the EU will continue to absorb resources into the first half of 2025.

• Operational improvements and cost savings anticipated from onboarding new suppliers in 2024-2025.