I-Tech (ITECH) Q4 2024 earnings summary

Executive summary

• Achieved record year in 2024 with 48% sales growth, 94% increase in operating profit, and a record quarter, driven by strong Asian demand and product launches.

• Diversified customer base, with over one-third of sales from non-CMP customers and 97% of sales to Asia.

• Selektope demonstrated strong efficacy in reducing barnacle fouling and fuel consumption, with significant adoption in the fleet.

• Board proposes a total dividend of SEK 1.75 per share, representing 53% of annual net profit.

• Recognized as a Gazelle company by Dagens Industri for 2024.

Financial highlights

• Net sales reached 179.4 MSEK for 2024, up 48% from 2023, with Q4 net sales at 57.8 MSEK, a 129% year-over-year increase.

• Full-year gross margin stable at 53%, with Q4 gross margin at 54%.

• Operating profit (EBIT) rose to 45.5 MSEK, a 94% increase year-over-year.

• Cash position at year-end was 100.2 MSEK, with strong cash flow from operations.

• EPS for 2024 was 3.3 SEK, up from 1.7 SEK in 2023.

Outlook and guidance

• Favorable market conditions expected to continue, with new customer product launches and expansion into new regions like New Zealand and Malaysia.

• EU regulatory renewal process for Selektope ongoing, with a decision expected in H2 2025.

• U.S. regulatory process to intensify in 2025, with initial steps toward market entry in the Americas.

• Continued investment in R&D, business development, and regulatory compliance.