I-Tech Q4 2024 slides: 48% sales growth drives 94% profit surge

Introduction & Market Context

I-Tech, the Swedish marine biocide technology company, presented its year-end report for 2024 on February 6, 2025, highlighting exceptional growth driven by strong performance in Asian markets. The company’s Selektope technology, which provides antifouling protection for ship hulls, continues to gain traction in the global maritime industry, addressing key challenges related to fuel efficiency, emissions reduction, and marine ecosystem protection.

The presentation comes as I-Tech’s stock continues its positive momentum, trading at 79.6 SEK, up 1.27% in the most recent session. The company’s shares have shown remarkable strength since the initial earnings announcement, when they surged 25.78% following the release of the financial results.

Quarterly Performance Highlights

I-Tech reported a particularly strong fourth quarter that capped off an impressive year of growth. The company characterized Q4 as "a topline sales sprint" that crowned a successful year, with overall annual sales growth of 48% compared to 2023.

As shown in the following chart of quarterly performance metrics, I-Tech has demonstrated consistent improvement in key financial indicators over the past several years, with significant acceleration in 2023-2024:

The company’s operating profit grew by 94% to 45.5 MSEK for the full year 2024, reflecting improved operational efficiency and strong sales momentum. The board proposed a dividend of 1.75 SEK per share, representing 53% of the net profit for the year.

Detailed Financial Analysis

I-Tech’s financial results show substantial improvements across multiple metrics. For Q4 2024, net sales reached 57.8 MSEK, more than double the 25.3 MSEK reported in Q4 2023. The full-year sales totaled 179.4 MSEK, compared to 120.9 MSEK in 2023.

The company maintained a strong gross margin of 53% for the full year, with a slight improvement to 54% in the fourth quarter. EBITDA for 2024 reached 53.7 MSEK, up from 31.4 MSEK in 2023, representing a 30% EBITDA margin despite increased operating costs.

The detailed financial performance is presented in the following table:

I-Tech’s cash position strengthened to 100.2 MSEK at the end of 2024, up from 83.3 MSEK at the end of 2023. The company noted an increase in net working capital to 32.1 MSEK (from 10.7 MSEK), attributed to prepayments for production and the significant increase in sales during the final quarter.

Geographical Distribution

One of the most striking aspects of I-Tech’s business is its heavy concentration in Asian markets. The company reported that 97% of its sales come from Asia, with the remaining 3% split between Europe and the rest of the world.

Within Asia, China represents the largest market at 50% of Asian sales, followed by Singapore at 30% and Korea at 13%. This geographical distribution reflects the concentration of shipbuilding and maintenance activities in Northeast Asia.

The following chart illustrates this geographical distribution:

This regional focus aligns with the global shipbuilding and maintenance market, where China, Korea, and Japan dominate new ship construction, while China and other Asian countries handle a significant portion of dry-dockings.

Regulatory Challenges

A significant portion of the presentation addressed the ongoing regulatory process for Selektope in the European Union. I-Tech outlined the timeline for re-registration, which extends through September 2025 when a vote in the Standing Committee on Biocidal Products is expected.

The company emphasized that a potential non-renewal in the EU would have global implications with negative trade impacts and would weaken EU competitiveness. I-Tech cited stakeholder feedback highlighting the scarcity of viable alternatives against hard fouling for commercial vessels in the EU market.

An independent socio-economic assessment performed by Ricardo Plc (LON:RCDO) concluded that "a derogated approval of Selektope is warranted," with the cost-benefit analysis showing costs of -4.0 against benefits of 0.0.

Strategic Initiatives & Outlook

I-Tech presented data demonstrating the effectiveness of its Selektope technology, noting that ships with products containing Selektope typically arrive in drydock with less than 10% animal fouling coverage in most cases, compared to higher fouling rates for ships without Selektope:

The company identified a substantial market opportunity, estimating the potential at $300-500 million annually across approximately 1,800 new ships and 20,000 dry-dockings each year:

I-Tech highlighted its current low market penetration, with Selektope present on more than 3,000 ships out of a global fleet of approximately 110,000 vessels. This suggests significant growth potential, particularly as environmental regulations become more stringent and fuel efficiency becomes increasingly important.

Looking ahead, I-Tech outlined its business development pipeline, focusing on complementing technologies, adjacent markets, and potential step-out opportunities:

The company’s business outlook emphasized favorable market conditions and new customer product launches, while acknowledging that the EU regulatory process continues to absorb attention and resources. I-Tech also noted ongoing operational improvements as a focus area.

With its strong financial performance, growing market presence in Asia, and unique technology addressing critical maritime challenges, I-Tech appears well-positioned for continued growth despite regulatory hurdles in Europe. The company’s asset-light business model and focus on innovation provide a foundation for expansion in both existing and new markets.

Full presentation:

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