I-Tech

I-Tech’s CEO, Markus Jönsson and I-Tech´s CFO, Magnus Henell are presenting the report live on the 6th of February, at 10:30 (CET).
Follow the broadcast: Here

Summary of the period

Net sales during the fourth quarter amounted to SEK 57,804 (25,273) thousand, which corresponds to an increase in sales of 129 (-16) % compared to the same quarter in 2023. The operating profit amounted to SEK 16,763 (-479) thousand.

Net sales for the full year 2024 amounted to SEK 179,451 (120,861) thousand, corresponding to an increase in sales of 48 (45) % compared to the full year 2023. The operating profit amounted to SEK 45,490 (23,389) thousand.

Significant events January to December 2024

• Major marine coating company launched a low biocidal premium antifouling product using Selektope.
• Sales of Selektope reached the 20 mt milestone with strong growth in NE Asia
• In conjunction with the Annual General meeting in May Philip Chaabane stepped down as CEO of I-Tech AB and was elected new Chairman of the board, replacing Stefan Sedersten. Remaining board was re-elected.
• The process for renewed approval within the EU moved from a scientific evaluation phase to a decision phase, and during the fall a Public Consultation was executed.
• Mid-September Markus Jönsson took office as CEO in I-Tech AB, replacing Magnus Henell who was serving as acting CEO since mid-May.
• I-Tech AB was awarded DI Gasell company by Dagens Industri.
• The board proposes an ordinary dividend of SEK 1.00 per share and en extra dividend of SEK 0.75 per share, in total SEK 1.75 per share, corresponding to 53% of the net profit for the year.

Significant events after the end of the period

• I-Tech AB signed a supply and license agreement with major Asian-based paint company.

Financial summary

CEO Comments
2024 has been another record year for I-Tech. We signed supply agreements with two new global paint companies, total sales grew by 48% year-on-year, and our financial performance continued to improve, despite a significant increase in external costs linked to regulatory compliance. Operating profit (EBIT) for the year grew by 94%, reaching SEK 45.5 (23.4) million.

Selektope sales accelerated further in Q4, achieving a new quarterly record of SEK 57.8 (25.3) million. Total sales for the year amounted to SEK 179.5 (120.9) million, resulting in a net profit margin of 22% (17%). I-Tech has now repaid all loans and consumed all tax losses that have been carried forward since the start.

In 2023, CMP represented around 80% of total sales. Throughout this year, our sales have diversified, and now more than a third of total sales come from customers other than CMP. PPG launched Nexeon 810, a copper-free antifouling product with Selektope during the spring of 2024, and sales to them have grown substantially throughout the year. The share of total sales to Asia grew to 97% (92%), and year-on-year sales to Korea, Japan and China grew by 86%, 37% and 94%, respectively.

Selektope’s Renewed Regulatory Approval in the EU:

The public consultation phase ended in November, with many external stakeholders voicing their concerns and disagreements with ECHA’s opinion on the hazard profile of medetomidine and the Analysis of Alternatives conducted by Norway, the competent authority evaluating the dossier. An independent socioeconomic study commissioned by I-Tech concluded that non-renewal would have major disproportionate negative impacts on society, justifying renewal under derogation criteria.

In the next phase, EU Commission representatives will consider the input and engage the Standing Committee on Biocidal Products (SCPB), with a derogated approval being one potential outcome. A decision is likely to come during the second half of 2025.

Market expansion:

As previously highlighted, the dry-docking market segment is becoming increasingly accessible thanks to a broader customer base, excellent formulation development by the R&D team, and successful testing. These factors can further accelerate Selektope’s growth in the coming years.

Regulatory approval processes in the USA are moving into a phase of higher activity in 2025, with the first steps of market penetration in the Americas expected this year. We are also expecting the regulatory process in New Zeeland and Malaysia to move forward during 2025.

A portfolio of new opportunities has been defined, and business development activities are being pursued in parallel with organic innovation projects. The team’s capabilities related to specific activities are being strengthened by additional, flexible resources.

Markus Jönsson

CEO I-Tech