Investor confidence has increased significantly across the UK stock market on Tuesday. I couldn’t stop this rise, Itaconics (London Stock Exchange: ITX) Stock prices plummeted following the latest earnings announcement.
Itaconix manufactures plant-based polymers. These are used to create more sustainable products. Used for home, work and personal care purposesAnd in the second half of last week, stock prices soared to a peak of 16.99p per share for the first time in four years.However Purpose The company made a sharp turnaround on Tuesday, down 23% from Monday at 12.5p per share.
On the bright side …
In that statement, “Significant revenue growth in odor control, continued growth in detergents, slight reduction in personal careThe Group’s revenue increased 39% in the first five months of 2021.
From January to May, product volumes for deodorant applications boosted sales. this is”Several years of customer pipeline development and new success with the latest odor control polymers launched in late 2019Itaconix enjoys recurring revenues in North America, Europe and Asia, and also reports new orders in the automotive and residential segments.
Itaconix announces bad news
But the news from the rest of the business wasn’t very positive. As mentioned earlier, personal care application revenue for the first five months of 2021Slightly lessYear after year. Because it was “Shipments in late 2020 met the needs of customers during lockdown in North America and Europe.“
that is”Variable order patternIt may emerge in the future as formulators return to work and more normal consumer buying behavior returns when the Covid-19 emergency subsides.
Other news is that from January to May, product volume for detergent applications increased year-over-year. this is. .. .. was “Despite delays in ordering in North America due to disruption in supply of other detergent ingredients“. Rather moody, the company said it expects some delays in detergent applications to continue as the supply chain adapts to the end of the coronavirus-related blockade. Even though the evaluation activity was updated as I returned to.
At the end”Brands and retailers are also adjusting inventories due to consumer purchase uncertaintyFollowing the Covid-19 lockdown. This raises further questions about the volume level of the products used in the detergent.
Is Itaconix a buy for me?
Itaconix’s share price has risen by more than 760% in the last 12 months, despite a big turnaround on Tuesday. This is a rise that reflects the growing importance of “green” products in the minds of consumers. Thi is a theme that helped the company grow its revenue by 156% in 2020. I think this UK share has plenty of long-term potential. However, due to current supply chain issues, we are not investing at this time.
Royston Wild Has no position in any of the listed shares. The Motley Fool UK does not have a position in any of the listed stocks. The views about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. At The Motley Fool, given a wide range of insights, Better investors than us.
Itaconix shares have plummeted by more than 20%! Need to buy this UK stock now?
https://www.fool.co.uk/investing/2021/06/09/the-itaconix-share-price-has-crashed-20-should-i-buy-this-uk-share-now/ Itaconix shares have plummeted by more than 20%! Need to buy this UK stock now?