Iofina (IOF) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 revenue of $26.0m, up 7% year-over-year, driven by strong iodine demand and increased production volumes.

• Net cash position improved to $1.1m after capex of $4.7m, with cash reserves of $5.7m at period end.

• Commissioned new IO #10 plant in September, expected to add 100-150 MT annual iodine capacity.

Financial highlights

• Revenue rose 7% to $26.0m; total iodine sales up 8% to $21.3m; non-iodine sales up 4% to $4.7m year-over-year.

• Adjusted EBITDA fell to $2.3m from $5.9m; operating profit dropped to $1.1m from $4.9m; net profit was $0.6m, down from $3.6m.

• Gross profit margin declined to 20% from 34% due to higher production and maintenance costs and lower iodine prices.

• Crystalline iodine sales volume increased 13% to 191MT; average realised price fell 7% to $66.84/kg.

• Capex increased to $4.7m, mainly for IO #10 construction and chemical plant upgrades.

Outlook and guidance

• H2 2024 crystalline iodine production expected at 355-380 MT, with IO #10 ramping up.

• Full-year adjusted EBITDA guidance reaffirmed at $8.5m–$9m, assuming expected production ramp and sales timing.

• Iodine spot prices have strengthened in Q3; H2 prices expected to be higher than H1.

• Board expects to meet market expectations for the full year; further plant expansion (IO #11) planned.