• Net profit after tax up 3.5% to $3.8 million
• Gross product margin improved 200 bps to 63.5%
• Aesthetics sales grew 4.5% in local currencies

SDI Ltd delivered a solid result for the six months ending 31 December 2024, with net profit after tax increasing 3.5% to $3.8 million compared to the previous corresponding period. Total sales were $51.5 million, down 1.3% on the prior year, with good growth in the European and Brazilian markets offset by declines in Middle Eastern, Asian, and Amalgam product sales. Product margins improved by 200 basis points to 63.5%, driven by operational efficiencies and a favorable product and geographical sales mix. Operating expenses increased 4.3% due to inflationary pressures, particularly in employment costs and increased marketing spend. The company remains focused on its strategic priorities, including growing its Aesthetics and Whitening product categories, achieving manufacturing and logistics efficiencies, investing in production automation, and ongoing R&D for new product launches. The Board has maintained the interim fully franked dividend at 1.5 cents per share.

The company expects the positive trend in product margin improvements to continue for the remainder of the financial year.

SDI expects Whitening sales to further improve with a planned rebranding rolling out in the second half of FY2025. The company continues to focus on its strategic priorities, including growing its Aesthetics and Whitening products, achieving operational efficiencies, and investing in new product development.