Itaconix PLC (AIM:ITX, OTCQB:ITXXF) CEO John Shaw joins Proactive's Stephen Gunnion with details of a trading update, released after the company was unable to reach satisfactory commercial terms with one of its major existing merchandising customers in North America for supply in 2024.
As a result, it has removed all future revenue expectations from the customer and has guided for full-year 2024 revenue in the range of $6 million to $6.5 million, against an unaudited US$7.9 million in 2023 - itself a record and a 40% rise from 2022.
Shaw highlighted this move as a significant short-term revenue loss but framed it as a positive step towards reducing dependency and fostering a healthier business relationship. He stressed that despite this change, the company remains optimistic about its future, aiming to become a "$100 million company" without operating out of fear. The relationship with the said customer remains amicable, with Shaw sharing personal anecdotes to underline their close ties.
Looking forward, Shaw discussed Itaconix's focus on leveraging the value of its ingredients for future consumer products, indicating a robust pipeline of opportunities in North America and Europe. He concluded by noting that the company's final results will be announced later in April, expressing excitement for the company's growth prospects.
