Regulatory press release

I-Tech AB (publ) (ticker: ITECH) publish the interim report for the first quarter 2025

I-Tech’s CEO, Markus Jönsson and I-Tech’s CFO & Director Operations, Magnus Henell will present the report live on the 8^th of May, at 10:30.

Follow the broadcast: here
Read the full report: here

Summary of the period
” Solid growth with record-high turnover and profit ”

Net sales during the first quarter amounted to 56,880 (38,270) TSEK, which corresponds to an increase in sales of 49% (24%) compared to the first quarter in 2024. The operating profit amounted to 17,656 (9,119) TSEK, which is an increase of 94%, and the resulting net profit margin for the quarter was 24% (21%).

Significant events January to March 2025

A new supply and license agreement was signed with a major Asian-based paint company.
A new study of 700+ vessels underscores the value of Selektope in achieving better barnacle protection. One-third of all ships in the study had more than 10% of their underwater surface area covered with barnacles at the time of entering drydock. Vessels coated with Selektope containing products had no, or very minor, presence of barnacles.
Board of Directors update: The Nomination Committee proposes the re-election of Tomas Bergdahl, Philip Chaabane, Raouf Kattan, Chatarina Schneider, and Tomas Tedgren, and the election of new director Staffan Asplund. Mikael Laurin has declined re-election.

Financial summary

All amounts in kSEK	2025 Jan-Mar	2024 Jan-Mar	2024 Jan-Dec	2023 Jan-Dec
Net sales	56,880	38,270	179,451	120,861
Operating result	17,656	9,119	45,490	23,389
EBITDA	19,649	11,180	53,713	31,371
Net result	13,868	8,186	39,013	20,203
Operating cash flow	26,082	14,562	35,173	35,143
Equity at end of period	171,256	144,424	157,388	136,238
Cash and cash equivalents at end of period	126,163	97,739	100,164	83,262

CEO Comments
The macro conditions for shipping have changed during the course of the first quarter of 2025. A gradual adjustment of underlying demand that mirrors the development of global trade can be foreseen going forward. For I-Tech, the ongoing changes to the world order are thus far only seen in the effect of a depreciating US dollar. The USD is our operational currency, and over time there is an almost linear impact of the USD/SEK ratio on our gross margin. In addition, there is a short-term exposure to currency fluctuations in our working capital and on our safety stock. During Q1, the value of the USD versus SEK has depreciated by almost 10%.

Total sales in SEK during Q1 grew by 49% year-on-year. Our financial performance continues to improve, and the operating profit (EBIT) for Q1 grew by 94%, reaching SEK 17.7 (9.1) million. As planned, our gross margin continues to strengthen to 56% (53%).

Among our customers, both CMP and PPG continued to develop very positively during the first quarter, with their volumes growing by 40% and 300% over Q1 2024, respectively. The share of total sales to Asia during Q1 was 98%, with sales to China growing faster than in other northeastern markets.

Selektope’s Renewed Regulatory Approval in the EU:

EU Commission representatives from DG SANTE met with the Standing Committee on Biocidal Products (SCPB) in March for an initial discussion on the input received during the public consultation for Selektope (Medetomidine). I-Tech expects that an extension of the current market approval for Medetomidine, which ends in June, will be announced during Q2. This is a standard procedure for the SCPB and will ensure there is sufficient time to complete all the necessary steps of the ongoing re-registration process. In terms of the timeline, I-Tech still expects more clarity on the outcome of the current process during the second half of 2025.

Market expansion:

There is good progress on the business development activities in the portfolio of new opportunities. Organic growth projects are advancing through the innovation funnel, and inorganic growth opportunities are being actively evaluated. The team is exploring both product and market adjacencies, as well as more transformative ideas.

Markus Jönsson

CEO I-Tech

About I-Tech AB
I-Tech is a biotechnology company that has developed the antifouling technology Selektope®, an active substance that prevents barnacle attachment on submerged surfaces such as ships and boat hulls. By increasing the anti-barnacle performance in marine paint systems (e.g. antifouling coatings), fuel and maintenance costs are reduced ang vessel energy efficiency improved. I-Tech has obtained the necessary regulatory approvals for Selektope® and has several of the world's largest manufacturers of marine antifouling coatings as customers. The company's share is listed for trading on Nasdaq First North Growth Market in Stockholm. The Company’s Certified Adviser is Carnegie Investment Bank AB (publ). For more information visit our website www.i-tech.se.