• Interim revenue surged 83% to $10.5M, highest since strategic transformation
• Pre-tax profit improved 19.5% to a loss of $3.3M, also highest since transformation
• Growth driven by sharp ramp up in Advanced Therapies vertical with higher margins

IDT Australia Ltd (ASX: IDT) reported a significant improvement in revenue and profitability in the first half of financial year 2025 (H1FY25) when compared to the previous corresponding period (pcp). Interim revenue surged 83% to $10.5 million compared to the prior corresponding period, while the loss before tax narrowed by 19.5% ($787K improvement) to $3.3 million. Both revenue and profitability metrics have reached their strongest levels since IDT initiated its strategic transformation more than two years ago. The growth coincides with strong demand from returning customers and US-based entities who are attracted to Australia because of its high regulatory standards, cost effectiveness and attractive tax credits for research and development. The robust growth in the period is driven by the Advanced Therapies vertical, which recorded revenue of $3.9 million in H1FY25 compared with $323K in the pcp (+1,116%). This higher growth vertical is leveraged to the growing global demand for Antibody Drug Conjugates (ADC) and messenger RNA (mRNA) technologies. Revenue from the Specialty Orals vertical dipped 7.1% pcp to just over $2 million in the period, while the API Manufacturing vertical saw a 63.6% pcp decline to $1 million due to the timing and cycling of orders. IDT is on track to deliver a material uplift in its full year result compared to FY2024, driven by multiple revenue tailwinds, product lifecycle and follow-on work opportunities, margin expansion opportunities, favourable sales mix, and financial flexibility after securing a $20 million asset-based loan facility.

IDT expects to deliver a significant improvement in full year revenue, having won ~$20M in new contracts in H1FY25 alone. The company sees multiple opportunities to expand sales and profit margin over the short and long term via shift in the sales mix, operating leverage, and booming demand for next-gen drugs.

IDT is on track to deliver a material uplift in its full year result compared to FY2024, driven by multiple revenue tailwinds, product lifecycle and follow-on work opportunities, margin expansion opportunities, and a favourable sales mix. The company has the financial flexibility to expand its business and service new and large contracts after securing a $20 million asset-based loan facility.