I-Tech AB (publ) (ticker: ITECH) publish the interim report for the third quarter 2024
I-Tech's CEO, Markus Jönsson and I-Tech´s CFO, Magnus Henell present the report live on 18th of October, at 10:30.
Follow the broadcast: here
Read the full report: here
Summary of the period
” Yet another solid performance ”
Net sales for the third quarter amounted to SEK 40,766 (32,175) thousand, which corresponds to a sales increase of 27 (62) %. The operating profit amounted to SEK 9,436 (8,132) thousand. For the first nine months, net sales amounted to SEK 121,647 (95,588) thousand which corresponds to 27 (79)% growth. The operating profit amounted to SEK 28,727 (23,867) thousand.
Significant events July to September 2024
- Mid-September Markus Jönsson formally took office as CEO in I-Tech.
- I-Tech announced that a Public Consultation for renewal of the Selektope approval in EU has been launched.
Significant events after the end of the period
No significant events occured after the period.
Financial summary
| All amounts in kSEK | 2024 Jul-Sep | 2023 Jul-Sep | 2024 Jan-Sep | 2023 Jan-Sep | 2023 Jan-Dec |
| Net sales | 40,766 | 32,175 | 121,647 | 95,588 | 120,861 |
| Operating result | 9,436 | 8,132 | 28,727 | 23,867 | 23,389 |
| EBITDA | 11,488 | 10,144 | 34,892 | 29,828 | 31,371 |
| Net result | 7,790 | 6,782 | 24,714 | 20,435 | 20,203 |
| Operating cash flow | 10,501 | 17,181 | 29,000 | 35,917 | 35,143 |
| Equity at end of period | 143,089 | 136,470 | 143,089 | 136,470 | 136,238 |
| Cash and cash equivalents at end of period | 94,264 | 84,593 | 94,264 | 84,593 | 83,262 |
CEO Comments
It’s been a month since I took office, and what an eventful period it has been for both me personally and the I-Tech team. First, I want to thank Magnus Henell for his leadership as interim CEO during the transition period and express my gratitude to the entire I-Tech team for the warm welcome. I look forward to working closely with everyone to ensure I-Tech’s continued success as we focus more intensively on new opportunities.
Selektope® sales have maintained strong momentum in Q3, driven by favorable macroeconomic conditions, and more importantly, by the market success of our customers’ new and existing antifouling solutions that include Selektope.
Sales in the quarter amounted to SEK 40.8 (32.2) million and the operating profit was SEK 9.4 (8.1) million, both closely trailing the previous record quarter. The operating margin was 23 (25)%. Year- to-date sales at the end of September amounted to SEK 121.6 (95.6) million surpassing 2023 full year turnover, with an operating margin of 24 (25)% where the increased costs linked to the re- registration process in the EU have been offset.
Customer base diversification continued in Q3, with more than a third of total sales now coming from customers other than CMP. We have seen significant growth in sales to several customers, including PPG, who released their Selektope- containing product, Nexeon 810, during the spring. Kansai Paint in Japan has recently registered three new Selektope-containing products in their Takata Quantum dry-docking series for the Japanese market.
Selektope’s Renewed Regulatory Approval in the EU – “An Ironic Twist of Fate?”
The European shipbuilding and dry-docking markets are small in a global context, currently contributing less than 10% to I-Tech’s turnover, with limited additional potential. The ongoing case questioning the renewed approval for Selektope in the EU market threatens its good reputation and long-term market potential but is unlikely to impact medium-term sales growth.
I-Tech is driven by a commitment to develop more sustainable antifouling solutions to benefit the shipping industry and protect our oceans and the environment. We have gathered information and produced a short video to explain I-Tech’s views on the issue related to the renewed approval in the EU: To the info page
The process for renewed approval is currently in the public consultation phase, expected to last until mid-November. During this phase, stakeholders including ship owners, shipyards, and paint producers are invited to provide feedback on the renewal case, explain their use of Selektope, and argue for its continued availability in the EU market. The team is investing significant effort into securing relevant input from customers and key stakeholders and preparing for the next phase when the Standing Committee on Biocidal Products (SCPB) will consider the input from the consultation process.
Market expansion:
As previously stated, the majority of Selektope sales are currently in Asian markets, where most future potential also lies due to the structure of the shipbuilding and maintenance industry. The dry-docking segment is becoming increasingly accessible thanks to the excellent formulation development work in R&D, which can further accelerate Selektope®’s growth in the years to come.
Regulatory approval processes in the USA, New Zealand, and Malaysia are steadily progressing, and we expect to secure Selektope approval in Malaysia during the first half of 2025.
The team is gearing up on business development activities and several new opportunities are being pursued in parallel. The short-term goal is to establish a balanced project pipeline and further strengthen the team’s capabilities in specific areas related to the business development discipline.
Markus Jönsson
CEO I-Tech