Chair's Address to Shareholders

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Stock SDI Ltd (SDI.ASX)
Release Time 27 Nov 2025, 11:51 a.m.
Price Sensitive Yes
 SDI Ltd Chair's Address to Shareholders
Key Points
  • Solid normalized after-tax profit of $10.5 million, up 0.1% on last year
  • Ongoing focus on aesthetic and whitening products as future strategy
  • Stela, a new amalgam and restorative replacement product, showing good sales growth
Full Summary

The 2025 financial year presented SDI Ltd with challenges, including continued changes to the European product registration requirements, instability in some Middle East markets, and underperforming Asian markets. Despite these challenges, the company achieved a solid normalized after-tax profit of $10.5 million, up 0.1% on the previous year. Sales of $110.4 million were led by growth in Aesthetic products, improvement in Whitening products, and strong growth in the European market. The ongoing focus on aesthetic and whitening products continues to be the company's strategy for the future direction of its portfolio. SDI also saw declining sales of Amalgam products, which were offset by other products, including their newest product, Stela. Stela, an exciting amalgam and restorative replacement, was released in most key markets during the year and showed good sales growth and positive market feedback. The new European Union Medical Device Regulation (MDR) continues to be a major emphasis for the company, and they have secured the necessary registration. As a consequence, much of SDI's research and development resources have been allocated to achieve registration for its legacy products. However, the company still aims to release one to two new products every year. Globally, product registration is becoming more difficult to achieve, but SDI is well equipped to sell all products in all major markets around the world. The company's planned new 6,500sqm factory in Montrose is an exciting project that will increase production capacity and efficiency, with construction expected to commence in early 2026 and the manufacturing plant to be moved in 2027. In the 2026 financial year, SDI will continue to focus on changing its amalgam customers to Stela, the building of the new manufacturing plant, and ensuring full compliance with the MDR registration.

Guidance

In the 2026 financial year, SDI will continue to focus on changing its amalgam customers to Stela, the building of the new manufacturing plant, and ensuring full compliance with the MDR registration.

Outlook

SDI is well equipped to sell all products in all major markets around the world. The company's planned new 6,500sqm factory in Montrose is an exciting project that will increase production capacity and efficiency, with construction expected to commence in early 2026 and the manufacturing plant to be moved in 2027.