• Improved operational efficiencies drive strong margin growth
• Aesthetics and Whitening products continue to be the focus for new product development
• Stela product exceeding expectations, on track to be one of the best product launches

SDI Ltd has reported its 1H FY25 results, with improved operational efficiencies continuing to drive strong margin growth. Revenue for the period was $51.5 million, down 1.3% on the prior corresponding period (pcp), with good growth in European and Brazilian markets offset by declines in Middle Eastern and Asian markets. Gross profit margins increased by 200 basis points to 63.5%, driven by favourable product and regional mix as well as operational efficiency gains. EBITDA was $8.6 million, down 4.4% on pcp, while NPAT increased 3.5% to $3.8 million. The company continues to invest in research, development and capital expenditure, with a focus on Aesthetics and Whitening products. The Stela product is exceeding expectations and is on track to be one of the company's best product launches. SDI is also progressing with its ESG roadmap, formalising its ESG working group and defining material topics. The company's new manufacturing facility in Montrose is expected to commence construction in August 2025, with the project expected to provide over $200 million in additional sales capacity.

SDI expects the new Montrose manufacturing facility to provide over $200 million in additional sales capacity, underpinned by margin improvement with an expected return on investment (PBT/Rev) of over 20%.

SDI's focus will remain on Aesthetics and Whitening products, with the release of 2-3 new products in the next 12 months. The upcoming International Dental Show in Germany will help showcase some of the company's innovative products. The new Montrose facility is expected to drive manufacturing and logistic efficiencies to support the company's sales growth aspirations.