Iofina PLC on Friday said its interim profit has fallen by more than 75%, following a six-month period of increased maintenance costs.
The Colorado, US-based iodine producer said its revenue at the end of the six-month period to June 30 was $26.0 million, up 7.0% on-year from $24.3 million.
However, pretax profit fell 77% to $1.1 million from $4.7 million.
Cost of sales rose to $20.8 million, up 30% from $16.0 million the previous year. This was the result of new contracts negotiated in April with a brine supplier that gives two plants longer-term supply, but at a higher cost, as well as other large maintenance projects moved into the first half of 2024.
Iofina expects these maintenance costs to be lower in the second half of the year, and said it remains on track to meet full-year market expectations.
‘Iofina expects both margins and production volumes to significantly improve in the second half of 2024 given that our plant efficiencies improve in warmer months. We remain on track to reach full-year 2024 adjusted earnings before interest, tax, depreciation and amortisation between $8.5 million and $9 million’, the company said.
Chief Executive Officer & President Tom Becker said: ‘The group has delivered a robust first half performance, with sustained demand for our products and increased production leading to a 7% increase in revenue, despite the average realised selling price of iodine being 7% lower than reported for the first half of 2023. The group has continued to generate strong cash flows, with its net cash position improving to $1.1 million.
‘As well as our commitment to securing sites for new plants and ongoing product research and development, new investment has been made in our marketing and sales team, including targeted hires and upgrades to our website and other digital marketing channels, to help facilitate and drive sales directly to Iofina Chemical. We have built a stronger platform for accelerated growth, and we look forward to reporting on further progress in due course.’
Shares in Iofina were down 7.0% at 20.00 pence each in London on Friday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
