• Revenue from operations up 17.8% to $171.2m
• Profit after tax up 31.6% to $19.8m
• Interim dividend of 32.0 cps, 69.3% payout ratio

Supply Network Ltd has provided an update on its financial performance for the first half of FY2025. Revenue from operations was $171.2m, an increase of 17.8% on the prior corresponding period. Profit after tax was $19.8m, an increase of 31.6% on the prior corresponding period. Basic earnings per share of 46.2 cents increased 28.3% on the prior corresponding period. The company declared an interim dividend of 32.0 cents per share, representing a 69.3% payout ratio for the first half. Revenue growth was stronger in Australia (18.1%) than in New Zealand (15.3%), though the gap is closing. Gross margin improved by approximately 2.3% on the prior corresponding period, with roughly half the increase due to a recovery of margin lost during peak inflation and the other half due to improved sourcing. Operating expenses increased by 22.5% compared to the prior corresponding period, and the company expects a similar trend for the remainder of the financial year as it absorbs costs related to implementing higher customer service standards and building out network capacity to support Group revenue of $400m. The company has been focused on systems improvement, targeting transaction efficiency and the speed and accuracy of customer service, which is expected to remain a key focus for another two years. Sales growth has been broadly based across geographic regions and customer segments. The company notes that the macro environment, including the threat from new vehicle entrants, skilled labour challenges, and technology confusion, are raising risks and changing the focus of investment in established truck franchise workshops, which will continue to constrain their capacity to meet market demand for established technologies. This trend is contributing to the company's improved sourcing and helping it build a position as the major alternative supplier for high-quality replacement parts.

The company expects to achieve revenue of $400m in the current financial year.

The company has commenced work on its next 3-Year Plan, which will include investments needed to support revenue of $450m by FY2028.