Iofina, specialists in the exploration and production of iodine and manufacturers of high quality chemical products at its specialty chemical company, announces its audited final results for the 12 months to 31 December 2018.
2018 was a record year for Iofina, which saw the Group achieve its highest total production of crystalline iodine and a record EBITDA performance. The Group produced 588 metric tonnes ("MT") of crystalline iodine from its Oklahoma based IOsorb® plants, a 17% increase from 2017. The profitability of the Group continued its upward momentum. For 2018, the EBITDA for the Group was $2.6m which represents an increase of 89% versus 2017. The expansion of iodine production with the Group's newest plant IO#7, coupled with continued internal cost control measures, operational gearing of the business and the positive momentum in iodine prices, were main factors in helping achieve these record results.
2018 Financial Highlights:
- Revenue increased by 15% to $24.0m (2017: $20.8m)
- Gross profit increased by 38% from $4.9m (23% of sales) to $6.3m (26% of sales)
- EBITDA improved by 89% to $2.6m (2017: $1.4m)
- H2 2019 EBITDA totalled $1.9m, well ahead of H1 2019 EBITDA of $0.7m
- Operating profit was $1.1m compared to an operating loss of $0.7m
- Loss before tax decreased by 85% to $1.4m (2017: $9.8m)
- Cash balances increased by 32% to $4.5m (2017: $3.4m)
- Capital investment was $0.9m (2017: $2.1m)
2018 Operational Highlights:
- Produced 588.8 MT of crystalline IOflo® iodine from Oklahoma based IOsorb® plants (2017: 503 MT)
- Iofina's newest IOsorb® plant, IO#7, began production in mid-February 2018 and was a key contributor for the Group
- Continued to reduce overall iodine production manufacturing costs.
- Iodine prices increased to ~$26-27/kg at start of 2019 from levels ~$24/kg at the start of 2018.
- Iofina Chemical had a strong trading year with the Group's IOflo® crystalline iodine and other specialty products
Post year end
- 134.4MT of crystalline iodine produced in Q1 2019, a record production for Q1 in the history of the Group
- Debt refinanced in March 2019 and extended to 1 July 2020
- Continued R&D of new specialty chemicals
- Iodine prices have continued to move upward into early Q2 of 2019 and expected to rise further through 2019
- Sites for IO#8 under review with construction expected to commence later in the year
The Company is posting its 2018 Financial Results to shareholders this week, and will notify the time and location of its AGM to shareholders later this month.
Commenting, President and CEO Dr. Tom Becker, stated:
''2018 was an exceptional year and a result of the strategies executed over the last few years by the Directors and employees of Iofina. The resulting record iodine production, together with increased iodine prices, was the major factor in record EBITDA levels in 2018, and further significant progress is expected. Over the last few years, by executing cost savings plans, prudent growth, and investing in new products, the Group has turned itself around and is performing at its highest level to date. This momentum has continued into early 2019 with record Q1 iodine production.
"Iofina intends to continue with this progress. The Company is looking to expand its iodine production in 2019 and remains committed to investing in new, innovative products. The iodine market is continuing to move in a positive direction, although iodine prices are still below pre-2011 levels. Our focus on everyday execution, coupled with the development and implementation of near-term and long-term growth strategies, are vital to continue with the exceptional progress of the Group moving forward."