• Sales revenue up 6.6% vs PCP, driven by organic growth and acquisitions
• Gross profit margin stable at 21.5%
• After-tax ROIC up 0.5ppts to 14.0%
• Interim dividend of 6.5 cps, representing 78% payout ratio

REDOX Ltd, a leading chemical distribution company, has reported strong financial results for the first half of fiscal year 2026 (1H26). The company's sales revenue grew by 6.6% year-on-year to $674m, driven by a combination of organic growth and contributions from acquired businesses. The Industrial segment performed particularly well, with sales increasing by 29% compared to the prior corresponding period (PCP), driven by portfolio additions in power transmission and generation, as well as customer wins in North America. The Food segment also delivered a solid 14% increase in sales, thanks to new customer conversions and share of wallet gains. However, the Human Health segment saw a 16% decline in sales due to weaker demand in New Zealand. On the profitability front, REDOX maintained a stable gross profit margin of 21.5%, despite the dynamic market conditions. The company's after-tax return on invested capital (ROIC) improved by 0.5 percentage points to 14.0%, reflecting its efficient deployment of capital to fund acquisitions and drive growth. REDOX's balance sheet remains strong, with $145m in cash or cash equivalents and zero net debt, providing the company with ample financial flexibility to pursue further organic and inorganic growth opportunities. The company's net working capital as a percentage of sales improved to 29.0%, demonstrating effective working capital management.The board of directors has declared an interim dividend of 6.5 cents per share, representing a payout ratio of 78% of profits. This is in line with REDOX's long-term dividend policy, which targets a payout ratio of 60-80% of profits.Looking ahead, REDOX's CEO, Raimond Coneliano, noted that while market conditions remain dynamic, the company continues to demonstrate resilience and expects to deliver growth through disciplined execution and diversification. The company is well-positioned to benefit from an improving environment and to capture growth opportunities across its segments and geographies, supported by its strong financial position and asset-light business model.

REDOX expects to deliver growth through disciplined execution and diversification, with the company well-positioned to benefit from an improving environment and capture growth opportunities across its segments and geographies.