• Revenue up 33%, EBIT improved $8.0 million, free cashflow improved $6.8 million
• Higher pricing and cost efficiencies deliver earnings benefits of $6.6 million
• Continued growth for Penthrox in Australian hospital segment and Europe

Medical Developments International Limited (ASX: MVP) announced its FY25 half-year results, reporting a net profit after tax of $0.3 million, compared to a loss of $10.9 million in the prior corresponding period. The company's underlying EBIT improved by $8.0 million to $0.2 million, driven by stronger volumes, improved pricing, and operational efficiencies. Group revenue was up 33% on the prior corresponding period, with the Pain Management segment revenue growing 37% and the Respiratory segment revenue increasing by 26%. The company's free cashflow improved by $6.8 million, reflecting improved earnings, disciplined working capital management, and lower capital expenditure. The company has implemented pricing initiatives that are expected to deliver annualized margin improvements of approximately $3.5 million, including enhanced pricing in Australia and improved economic terms in the UK and Ireland. The company also made further progress in its strategy to grow Penthrox in the Australian hospital emergency department segment, with demand up 52% on the prior corresponding period. In Europe, in-market demand for Penthrox was up 22% versus the prior corresponding period, with strong growth in all markets. The company also submitted an application to the European regulatory agency based on the MAGPIE paediatric study data, which, if successful, would broaden the addressable market for Penthrox in select markets to children from 6 years of age.

The Group expects underlying EBIT for the full year to be strongly improved on FY24, driven mainly by benefits of $8 million from higher average Penthrox prices and operational efficiencies. The Group remains on track to generate positive operating cashflow for the second half of FY25.

Phasing and movements in foreign exchange rates are expected to result in earnings that are lower in the second half of FY25 compared to the first half. Notwithstanding, the Group expects underlying EBIT for the full year to be strongly improved on FY24.