Itaconix manufactures plant-based polymers. These are then used to help to create more sustainable products that are used at home, at work and for personal care purposes. And it saw its share price surge to four-year peaks of 16.99p per share late last week. But the AIM company reversed sharply on Tuesday and, at 12.5p per share, it slumped 23% in value from Monday.

On the bright side…

In its statement, it said “strong revenue growth in odour control, continued growth in detergents, and a small decline in personal care” helped group revenues increase 39% in the first five months of 2021.

Product volumes for odour control applications helped to drive sales in the January to May period. This reflected “several years of customer pipeline development and the emerging success of our latest odour control polymer launched in late 2019.” Itaconix is enjoying recurring revenues in North America, Europe and Asia, and it also reported new orders in the automotive and home segments.

Itaconix breaks out the bad news

However, news from the rest of its operations wasn’t nearly as positive. As mentioned, it advised that revenues for personal care applications in the first five months of 2021 “were slightly less” year-on-year. That was because “shipments in the last part of 2020 met customer needs during the lockdowns in North America and Europe.”

It reckons “variable order patterns” may emerge going forwards as formulators go back to work and more normal consumer buying behaviour return when the Covid-19 emergency recedes.

In other news, it saw product volumes for detergent applications rise during January to May year-on-year. This was “despite order delays in North America from disruptions in the supply of other detergent ingredients”. Rather glumly, the company said it expects some delays for detergent applications to continue as supply chains adjust to the end of coronavirus-related lockdowns. This is despite it seeing renewed evaluation activity as those formulators return to work.

Finally, it said “brands and retailers are also adjusting inventories due to uncertainties about consumer buying” following Covid-19 lockdowns. This is raising further questions over product volume levels for use in detergents.

Is Itaconix a buy for me?

The Itaconix share price is still up more than 760% over the past 12 months despite Tuesday’s heavy reversal. It’s a rise that reflects the growing importance of ‘green’ products in the minds of consumers. Thi is a theme that helped revenues at the firm soar 156% in 2020. I think this UK share has plenty of long-term potential. But I won’t invest for the moment, due to those current supply chain problems.

The post The Itaconix share price has crashed 20%+! Should I buy this UK share now? appeared first on The Motley Fool UK.