SDI Limited (ASX:SDI) Provides Trading Update
Sales Performance
SDI Limited (ASX:SDI) reported preliminary unaudited sales of $51.5 million for the six months ending 31 December 2024. This marks a decline of 1.5% compared to the previous corresponding period. Adjusting for currency movements reveals a modest increase of 1.0% in sales. Notably, European and Brazilian markets showed strong growth, up 9.7% and 9.2% respectively.
Regional Challenges
Despite positive sales in certain regions, SDI experienced weaknesses in direct exports to the Middle East and Asia. Sales of Amalgam products fell significantly by 14.6%, now representing 12.9% of total sales, with North America and Europe showing the weakest performance in this category.
Profit Margins and Expenses
The company’s gross profit margins improved to 63.5%, up from 61.5% in the prior year, driven by enhanced production efficiencies and a favourable product mix. Operating expenses are being effectively managed amidst ongoing inflationary pressures, particularly in employment costs.
Net Profit Expectations
For the six-month period ending 31 December 2024, SDI Limited anticipates a net profit after tax in the range of $3.4 million to $3.7 million, slightly lower than the $3.7 million reported in the previous corresponding period. The detailed Half Year results will be released on February 27, 2025.
Motley Fool contributor Kiarra Jackson 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.
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