Massachusetts, US – Polymeric flame retardant specialist FRX Innovations has reported a 59% increase in revenue for the third quarter of 2023 compared to the same quarter in 2022, rising to $620k. The gross margin deficit improved from $1.0m in the 2022 quarter to $370k in the quarter this year. The company said that this indicates its variable costs, including those for energy, are returning to historical levels.
“This performance prepares FRX well for anticipated future growth as deadlines approach for previously announced legislative and litigation-driven requirements to eliminate brominated and PFAS-containing flame retardants,” it said.
Cost of goods sold expenses also fell year-on-year. The company also said it had “aggressively” reduced inventories, converting $820k of its finished goods inventory to cash during the first three quarters of 2023, aiding cash flow.
“The third quarter of 2023 has been an important period for FRX Innovations, underscored by promising financial results,” said CEO Marc Lebel. “Our revenue growth of 59% and the marked improvement in our gross margins demonstrates that we are successfully navigating the current challenges facing the global chemical industry.”