Iofina plc, specialists in the exploration and production of iodine and manufacturers of specialty chemical products, is pleased to announce its Interim Results for the six months ended 30 June 2019 (the "Period").
During the Period the Group significantly strengthened its financial performance, with revenue up 29% to $14.53m (H1 2018: $11.30m) and EBITDA up 172% to $1.97M (H1 2018: $0.72m). The $3.23m increase in revenue and substantial increase in EBITDA was a result of the growth in sales volumes and higher iodine prices.
The Group's four IOsorb® iodine production plants produced a total of 286.7 metric tonnes ("MT") of crystalline iodine, an 8.6% increase from the prior year (H1 2018: 264.1 MT). The Group is pleased to confirm that a fifth IOsorb® plant, IO#8, is now in the first phase of construction and the new partner in IO#8 is anticipated to provide opportunities for future plants at future sites.
KEY FINANCIAL POINTS:
· Revenue increased by 29% to $14.53m (H1 2018: $11.30m);
· Gross profit increased by 53% to $3.90m (H1 2018: $2.55m), and from 23% to 27% of sales;
· EBITDA increased by 172% to $1.97m (H1 2018: $0.72m), and from 6% to 14% of sales;
· Operating profit was $1.21m (H1 2018 loss $0.05m);
· Loss before and after tax was $0.30m (H1 2018 $0.75m) (profit of $0.13m if $0.43m residual non-cash convertible loan notes charges are excluded);
· Basic loss per share was $0.002 (H1 2018: $0.006);
· Cash balances were $10.26m (H1 2018: $3.0m) ($5.05m unspent from fundraise after debt repayment of $3.26m, $5.21m other cash);
· Equity increased by $8.31m cash from fundraising and $4.19m from debt converted to equity;
· Debt was restructured by extending term and removing convertibility, and reduced by $7.46m to $18.18m.
KEY OPERATIONAL AND MARKET HIGHLIGHTS:
· IO#8 is in the first phase of construction;
· Production of crystalline iodine up 8.6% to 286.7 metric tonnes ("MT") (H1 2018: 264.1 MT)
· Iodine prices have continued to rise with the current spot price at or near $33/kg
· Launch of IofinaEX, licensed in Kentucky to process and develop products derived from hemp such as CBD
· Incorporation of IofinaEX Global, a specialist division focused on the production of hemp derived products in Central America and the Caribbean
· Iofina Chemical continues strong performance with a diverse portfolio of iodine and other halogen products and has increased capacity of some key products to meet demand.
· Iodine market remains tight, with iodine prices likely to move higher with Chilean supply being squeezed
· Iodine expansion remains on track, with the new partner at IO#8 providing opportunities for future plants at future sites.
Commenting on today's results, Dr. Tom Becker, President and CEO stated: "It has been an exceptionally strong first half for Iofina, with the Group having achieved a record revenue of $14.53 million in the period. This, together with the significantly improved EBITDA, has been a result of an increase in iodine production accompanied by growth in sales volumes and higher iodine prices.
"The Company has been working diligently to expand its iodine production capabilities further and is delighted to confirm that IO#8 is currently in its first phase of construction. Whilst iodine expansion remains on track, the Group has also successfully launched IofinaEX and IofinaEx Global, entities that are designed to directly benefit from the profitable and rapidly growing hemp market.
"The strengthening iodine market, coupled with our timely execution of iodine expansion and product development, will ensure that Iofina expands in line with its growth strategy and achieves a record profit in 2019 and future years to come."