• Revenue of $632m, up 8.6%
• Gross profit of $137m, up 1.7%
• Interim dividend of 6.0 cents per share, 78% payout ratio

Redox Ltd (ASX: RDX), a leading supplier and distributor of chemicals, ingredients and raw materials, announced its financial results for the half-year ended 31 December 2024 (1H25). Key highlights include revenue of $632 million, up 8.6% compared to the prior corresponding period (1H24), driven by strong volume growth despite subdued demand. Gross profit increased 1.7% to $137 million, though gross profit margin declined 1.5 percentage points to 21.6% due to higher volume, lower margin commodity sales and lower margin acquired businesses. Underlying operating expenses increased $12 million in 1H25, resulting in underlying net profit after tax (NPATFX) declining $7 million to $41 million. The company ended 1H25 with a healthy net cash position of $138 million. Operationally, Redox expanded its sales team, increased its active product groups, and completed two acquisitions during the period. The company also signed new channel partnership agreements with Dow and Viva Energy. The Board determined to pay an interim 1H25 dividend of 6.0 cents per share, representing a payout ratio of 78% of statutory net profit.

Gross Profit Margins are expected to remain similar to the first half. The company anticipates strong volume growth above historical average for the remainder of FY25.

Redox will continue to look for opportunities to expand its geographic footprint, bolster its product portfolio, increase its share of wallet and grow its client base. The company remains focused on driving organic revenue growth and will continue to review strategic M&A opportunities. Redox expects macroeconomic and geopolitical headwinds to continue into 2H25, but is well positioned as demand recovers.