• Sales revenue up 8.6% vs PCP, driven by strong volume growth
• Gross profit margin of 21.6% within historical range
• Completed 2 strategic acquisitions in 1H25

REDOX Ltd (RDX.ASX) reported its 1H25 financial results, with sales revenue increasing by 8.6% compared to the prior corresponding period (PCP). This growth was driven by strong volume increases, particularly in the Crop Production & Protection and Water Care segments, which offset lower sales in the Mining & Explosives segment. Gross profit margin was 21.6%, sitting within the company's historical range, though down 1.5 percentage points from 1H24 due to higher volumes of lower-margin commodity products. REDOX completed two strategic acquisitions in the half - Oleum, an Australian distributor of surfactants and specialty chemicals, and Auschem, an Australian distributor of solvents and specialty chemicals with bulk storage and blending capabilities. The company's balance sheet remains strong, with $138 million in cash and cash equivalents and zero net debt. REDOX's management expects macroeconomic and geopolitical headwinds to continue into 2H25, but the company is well-positioned for recovery, with volume growth expected to remain above historical averages and 2H25 gross profit margins expected to be similar to 1H25 levels.

REDOX expects volume growth to remain above historical averages in 2H25, with 2H25 gross profit margins expected to be similar to 1H25 levels of 21.6%.

The company is strongly positioned for recovery, with macroeconomic and geopolitical headwinds expected to continue into 2H25. REDOX expects to deliver volume growth above historical averages for the remainder of the year.