Healthy salt startup Microsalt cut its losses in the first half of the year as it benefited from improved economies of scale amid rising demand.
Its revenue rose to $800k in the six months to 30 June, up from $200k a year ago, due to the continued expansion of bulk sales.
This helped cut its losses to $1.9m from $2.8m last year, reflecting the developing economies of scale in both the company’s production and sales efforts.
Its sales came almost exclusively from two subsidiaries of a global fmcg company – one in Mexico and another for North America.
Microsalt expanded into the UK and Belgium in the period, taking its presence beyond its base in North America.
“H1 has been a very busy and exciting time for Microsalt, marked by its successful fundraise and clear evidence of growth with some of the world’s largest fmcg companies,” said CEO Rick Guiney.
“Furthermore, our strategic focus on bulk ingredient sales has proven successful, delivering economies of scale across operations and positioning us for sustained improvements in financial performance.”
Last month, Microsalt cut its sales forecast for the full year after the US launched plans to phase out eight commonly used artificial food dyes by the end of 2026.
The company said the ban would cause delays in new product formulations and mean sales for the year would be around $2m rather than the $2.5m forecast previously.
It is still expecting strong growth in subsequent years, however, with “advanced discussions” ongoing with major food manufacturers continuing. It is expecting $6.7m of revenue in 2026 and between $13m and $15m in 2027.
The company revealed unauthorised debt repayments of $500k to Tekcapital Europe in August, leading to a sell-off that saw its share price plummet almost 30% so far this year. Its CFO Konrad Dabrowski consequently stepped down on 31 August.
Microsalt has now confirmed Gary Urmston, a non-executive director, has been appointed as part-time CFO until a new external appointment has been made.
No comments yet