• Gross margin improved to 62.9%, up 80 bps
• Aesthetic and Whitening product sales grew, offsetting decline in Amalgam sales
• Investing in new production machinery to drive further efficiency and capacity

SDI Limited, a leading dental technology company, reported a 16.7% increase in net profit after tax to $12.2 million for the 12 months ending June 2025, compared to $10.4 million in the previous corresponding period. After adjusting for a $1.7 million tax expense benefit, the company's normalized profit after tax increased by 0.1% to $10.5 million. Total sales were $110.4 million, down 0.7% on the prior year, with good growth in the European and Brazilian markets offset by declines in Middle Eastern, Asian, and Amalgam sales. Gross margin improved by 80 basis points to 62.9%, driven by operational efficiencies and favorable product and geographical sales mix. Operating expenses increased by 3.5% due to inflationary pressures, particularly in employment costs and increased marketing expenditure. The company continued to focus on its strategic priorities, including new product development in Aesthetics and Whitening, achieving manufacturing and logistic efficiencies, and investing in production automation and processes. The company has also made a commitment to progress its ESG initiatives. The Board has maintained the final fully franked dividend at 1.90 cents per share, showing confidence in the company's future.

The company expects gross margins to continue to improve as the new production machinery installed during the year becomes fully operational. The company will continue to focus on new product development in Aesthetics and Whitening, achieving manufacturing and logistic efficiencies, and investing in production automation and processes.