MicroSalt Reports Record H1 Sales and Projects $11M Growth from Major Customer

MicroSalt reports record H1 sales of $0.9M despite FDA delay trimming 2025 guidance. Major customer projects $11M growth from 2027.

18 August 2025by Joshua Thompson6 min read34 views

This article covers information on MicroSalt PLC.

LON:SALT

MicroSalt’s H1 2025: Record sales, deeper penetration, and a bigger prize on the horizon

MicroSalt has posted a record first half, built around repeat bulk orders and expanding geographic reach. The company also flagged a sizeable new volume projection from “Customer 3” – described as one of the world’s largest food, soft drink and snack manufacturers – which, if realised, would push revenue sharply higher from 2026.

There is a short-term wobble: a US regulatory detour has slowed some product reformulations, trimming 2025 guidance. But the medium-term setup looks stronger, with clearer line of sight to bigger orders and more product launches across multiple divisions and markets.

What actually improved in H1 2025

B2B bulk sales – that is, selling MicroSalt’s low-sodium salt in large quantities to food manufacturers – did the heavy lifting. Total sales hit a company record of $0.9 million in H1 2025, up roughly $0.4 million (about 72%) versus H2 2024. First-half sales were already 121% of all sales in 2024, showing clear momentum.

Customer 1 (the Mexican division of Customer 3) purchased $0.6 million for three mainstream items, with two more planned to begin in Q3 or Q4 2025.
Customer 2 (the North American division of Customer 3 – Canada and the US) purchased $0.2 million for one full brand (multiple items), with two more planned for Q4 2025.
Non-bulk sales to retail and ecommerce customers totalled $0.1 million.

Geographically, MicroSalt shipped to its existing markets in Mexico, the United States and Canada, and opened new markets in the UK and Belgium. That’s important: it reduces reliance on a single territory and helps validate the product across different regulatory and consumer environments.

The big swing factor: fresh volume projections from Customer 3

Here’s the headline: MicroSalt has received increased North America volume projections from Customer 3 for a single new item. The rollout is indicated to start in Q2 2026, with resultant sales exceeding $5 million in 2026 and expanding to $11 million in 2027.

Two caveats. First, the projections are non-contractual. Second, this relates to one product in North America only, albeit on top of the existing sales pipeline with Customer 3 and its divisions. Even so, management’s confidence reads well, and the numbers are meaningful when set against today’s run-rate.

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Guidance reset for 2025 and upgraded trajectory into 2026

Short term, the US FDA’s unexpected focus on eliminating petroleum-based food colourings has delayed a larger rollout that was previously slated for Q4 2025. As a result, MicroSalt has trimmed its 2025 sales estimate to $2.0 million (previously $2.5 million).

The delay is timing rather than demand related. The company now projects 2026 sales of $6.7 million, based on in-hand volume estimations and the current customer base, with further acceleration flagged for 2027 given the Customer 3 projections above.

Cash, inventory and operational readiness

Gross cash at 30 June 2025 stood at US$0.9 million (31 December 2024: US$0.3 million), supported by a US$2.9 million fundraise in February 2025. Management invested $1.2 million in inventory to meet expected higher orders in H2 2025. With some new formulations delayed by the FDA’s initiative, the company expects lower cash utilisation in H2 2025 than in H1.

In plain English: they’ve stocked up to deliver a bigger second half and to be ready for a step-up in 2026. Lower cash burn in H2 helps the near-term funding picture, though the exact runway is not disclosed.

Why this matters for investors

Repeat orders across multiple divisions of one of the world’s largest food groups are the best form of validation a small-cap ingredient supplier can get. Add to that new markets in the UK and Belgium, plus an expanded foodservice push via MicroSalt Premium (now targeting larger foodservice outlets, group purchasing organisations and school districts). The pipeline looks broader and stickier.

On the demand side, regulators around the world continue to lean into lower sodium consumption, which aligns neatly with MicroSalt’s proposition. The FDA’s colourant focus is an unexpected bump in the road, but it does not cut across sodium reduction – it just shifts the sequencing of certain product launches.

Key numbers at a glance

Metric	Figure	Timing / Notes
Total sales	$0.9 million	H1 2025; a company record; up c.72% vs H2 2024; 121% of FY 2024 sales
Customer 1 purchases	$0.6 million	Mexico; three mainstream items; two more planned to begin Q3/Q4 2025
Customer 2 purchases	$0.2 million	North America; one full brand; two more items planned for Q4 2025
Non-bulk sales	$0.1 million	Retail and ecommerce
2025 sales estimate	$2.0 million	Reduced from $2.5 million due to FDA-related delays
2026 sales projection	$6.7 million	Based on in-hand volume estimations and current customer base
Customer 3 new item	>$5 million (2026), $11 million (2027)	North America only; rollout indicated Q2 2026; non-contractual
Gross cash	US$0.9 million	30 June 2025; after US$2.9 million fundraise; $1.2 million invested in inventory

Risks and watch-outs

Non-contractual projections: The $5 million+ in 2026 and $11 million in 2027 for the new item are not binding. Conversion to firm orders is the key hurdle.
Regulatory timing: The FDA’s push on petroleum-based food colourings has delayed rollouts. Further regulatory changes could affect formulation timelines.
Customer concentration: H1 2025 was dominated by multiple divisions of Customer 3. It’s encouraging for scale, but concentration risk remains.
Cash and inventory: Cash was US$0.9 million at June-end with a sizeable inventory build of $1.2 million. Lower H2 cash utilisation is expected, but the runway length is not disclosed.
Margins not disclosed: There is no gross margin or profitability detail in this update, so the earnings impact of scaling volumes is not visible yet.

Near-term catalysts to monitor

Confirmation of the major fast-food company decision for MicroSalt Premium.
New items starting with Customer 1 in Q3/Q4 2025 and Customer 2 in Q4 2025.
Any movement on the FDA colourant initiative that accelerates or further delays reformulations.
H2 2025 trading showing whether the inventory build translates to higher shipments.
Updates converting Customer 3 projections into contractual orders for the Q2 2026 rollout.
Cash updates or financing plans, if required, ahead of the 2026 step-up.

My take: a timing setback, but a bigger opportunity building

This is a classic case of short-term delay, medium-term upgrade. Cutting 2025 guidance to $2.0 million is never fun, but the drivers are regulatory and timing-related rather than demand-related. Against that, MicroSalt has posted record H1 sales, added new markets, deepened ties with a global food group, and surfaced a new item that could be transformational from 2026.

If the indicated Customer 3 volumes convert to contracts and the rollout begins in Q2 2026 as projected, today’s scale will look small in hindsight. Execution, cash management and regulatory navigation are the watchwords from here. On balance, this trading update reads positively for the long-term thesis, with 2026 and 2027 shaping up as the key growth years.