SDI (SDI) H2 2024 earnings summary

Executive summary

• Achieved record full-year sales of AUD 111.2 million (up 3.1% year-over-year), with record profit driven by higher-margin aesthetic products and operational efficiencies.

• EBITDA rose 35.5% to AUD 21.9 million, and underlying NPAT increased 51.8% to AUD 11.4 million; final dividend of AUD 0.019 per share, up 8.6%.

• Gross profit margin improved by 530 basis points to 62.1%, supported by product mix shift and cost controls.

• New site capacity and automation investments are set to drive future sales and operational leverage.

Financial highlights

• Operating cash flow was strong at AUD 14.3 million, with net investing activities of AUD 8.8 million focused on plant, equipment, and warehouse upgrades.

• Cash balance stood at AUD 6.3 million, with low leverage and AUD 8.5 million headroom under bank facilities.

• Operating expenses were AUD 50 million, down 1.9% excluding impairment and currency effects.

• Asset impairment of AUD 968,000 related to property write-down and closure of old Brazilian operations.

• Net debt position was AUD 16.8 million at year-end.

Outlook and guidance

• Expect continued EBITDA growth in FY 2025, driven by sales growth, expense control, and margin maintenance.

• 3–4 new product launches and whitening rebrand anticipated to drive future growth.

• Project Montrose expected to expand capacity to over AUD 200 million in sales, with full operational status by December 2027.

• Peak debt projected at AUD 38 million in FY 2026, reducing to AUD 23 million after property sale in FY 2027.

• Continued investment in automation, R&D, and operational efficiencies to support growth.