SDI Limited (ASX:SDI) Reports Record Profit and Sales Growth
Performance Highlights
SDI Limited (ASX:SDI) has reported a record underlying NPAT of $11.4 million for FY24, marking a 51.8% increase compared to the previous year. The company achieved an EBITDA of $21.9 million, up 35.5%, with a total revenue of $111.2 million, representing a 3.1% growth from FY23. The gross profit margin improved to 62.1%, an increase of 530 basis points.
Dividend Announcement
The Board has declared a dividend of 1.90 cents per share, reflecting an increase of 8.6% compared to the prior year. This decision highlights SDI’s commitment to returning value to shareholders while continuing to invest in growth.
Sales Overview
Sales performance varied by region, with Europe demonstrating strong demand, resulting in a notable increase in sales of Aesthetic products. However, Australian and North American sales experienced declines primarily attributed to reduced manufacturing contracts and customer overstock situations.
Product Development and Market Strategy
Samantha Cheetham, CEO of SDI, noted, “The growth of our Aesthetic product line, particularly with our new product Stela, is exceeding expectations and aims to become our largest composite product.” Additionally, SDI’s successful European registration under the Medical Device Regulation allows further penetration in these markets.
Operational Initiatives
SDI has completed a significant upgrade to its Montrose site, with an investment of approximately $3 million. The new site is expected to enhance operational efficiencies and support revenues exceeding $200 million. Further investments in automation and new production machinery are set to enhance production capacity and streamline processes.
Future Outlook
Looking ahead, SDI plans to focus on Aesthetics and Whitening products, with expectations of launching two to three new products in the upcoming year. The strategic plan will leverage operational upgrades and an emphasis on research and development to foster long-term growth.
SDI Limited reports a record profit for FY24, reflecting strong operational efficiency and growth in European markets.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SDI. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.