Redox (RDX) investor relations material

Executive summary

• Sales revenue grew 6.6% year-over-year to $674 million, driven by organic growth, acquisitions, and strong industrial and food segment performance, especially in North America and APAC.

• Gross profit increased 5.9% to $145 million, with margins stable at 21.5%, reflecting disciplined cost management and a resilient operating model.

• Net profit after tax rose 8.9% to $43.8 million, with after-tax ROIC improving to 14.0%, up 0.5 percentage points year-over-year.

• Interim dividend of 6.5 cents per share declared, representing a 78% payout of NPAT, within the 60%-80% target range.

• The business remains focused on organic growth, disciplined cost management, and strategic M&A, particularly in North America.

Financial highlights

• Underlying EBITDAFX increased 4.7% to $65 million, with underlying NPATFX up 1.0% to $41.3 million.

• Free cash flow conversion improved to 91.4%, up from 19.7% in the prior year, due to lower inventory and shipment timing.

• Net cash and cash equivalents stood at $145 million at period end, with zero net debt.

• Operating expenses rose by $6 million to $85.8 million, mainly from staff and compliance costs.

• Underlying net operating cash flow surged to $62.2 million from $12 million in the prior period.

Outlook and guidance

• Management expects continued growth in North America, with further M&A opportunities and disciplined execution.

• Upward pricing pressure anticipated in the second half due to supply reductions and stable demand.

• Diversified portfolio and strong balance sheet position the company to act decisively on strategic opportunities.

• Well-financed, asset-light model supports ongoing M&A and organic expansion.

• North American business expected to become less variable as it matures.