SDI (SDI) H2 2025 earnings summary

Executive summary

• FY 2025 sales were $110.4 million, down 0.7% year-over-year, with flat overall revenue but notable gross margin improvement and continued product development progress.

• Gross margin increased by 80 basis points to 62.9%, driven by higher-margin products, regional mix, and production efficiencies.

• EBITDA declined 2.7% to $21.3 million, while normalized net profit after tax was stable at $10.5 million, up 0.1% year-over-year; reported NPAT rose 16.7% to $12.2 million.

• European and Brazilian markets showed strong growth, offsetting declines in Australia, North America, and Amalgam sales.

• Operational improvements, automation, and new product launches, including Stela, contributed to performance.

Financial highlights

• Final dividend of 1.9 cents per share, unchanged from the prior year.

• Operating expenses increased by 3.5–3.6%, reflecting inflationary pressures and higher marketing spend.

• Cash increased by $2.7 million after investments in property, plant, equipment, and product development, with debt reduced by $7.1 million.

• Operating cash flow rose, supported by reduced working capital and lower borrowings.

• Reported EPS increased 16.6% to 10.23 cents; normalized EPS up 0.1% to 8.83 cents.

Outlook and guidance

• Expectation of continued gross margin improvement in FY 2026 as new automation becomes fully operational.

• Strategic focus remains on Aesthetics and Whitening product development, with 1–2 new product launches expected in the next 12 months.

• Manufacturing and logistics efficiencies from the new site are expected to help achieve sales above $200 million.

• Ongoing investment in automation, manufacturing efficiencies, and ESG initiatives, with major site redevelopment planned by December 2027.