• Margins, earnings and cashflow strongly improved
• Good progress in delivering key strategic priorities
• Expect lower earnings in H2 FY25 vs H1 FY25, but full year EBIT to be strongly improved

Medical Developments International Ltd reported a strong set of results for the first half of FY25, with group revenue up 33% to $20.0 million, driven by improved performance in both the Pain Management and Respiratory segments. The company achieved significant margin improvements of $2.6 million from enhanced pricing, with $3.5 million in annual benefits expected. This, combined with a $4 million reduction in operating costs from efficiencies, led to a strong turnaround in underlying EBIT, which improved by $8.0 million compared to the prior corresponding period. The company also generated positive reported NPAT of $0.3 million, compared to a $10.9 million loss in the prior year. The company made good progress on its key strategic priorities, including accelerating Penthrox penetration in Australia, growing Penthrox in global markets, and driving continued growth in the Respiratory segment. While the company expects earnings to be lower in the second half of FY25 compared to the first half due to phasing and foreign exchange movements, the full year underlying EBIT is expected to be strongly improved on FY24, driven by the benefits of higher Penthrox prices and operational efficiencies.

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

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 remains on track to generate positive operating cashflow for the second half of FY25.