• First half FY25 profit before tax comparable to first half FY24
• North America revenue up 61.1% in first half FY25
• Europe revenue down 70.5% due to White Sapphire order delays

Advance Zinctek Ltd has provided a business update for the first half of the 2025 financial year (FY25). The company's profit before tax for the first half of FY25 is expected to be comparable to the first half of FY24. Revenue for the first half of FY25 was $5,513,153, compared to $5,626,248 in the first half of FY24. The company's North America revenue grew by 61.1% in the first half of FY25, reaching $3,127,293, compared to $1,940,988 in the first half of FY24. However, revenue in Europe declined by 70.5% to $418,542 in the first half of FY25, down from $1,416,596 in the first half of FY24, due to delays in sales of White Sapphire. The company is working on finalizing the first order of its Dry Feel white sapphire for its largest customer and is also finalizing its new Light Diffusing white sapphire, which is expected to be significantly cheaper than the Dry Feel product. The company is also finalizing the production of its High Purity white sapphire and has identified 13 applications and over 500 potential customers. The company's Perth factory and warehouses are no longer operational, and the cost of redundancies and relocating stock and equipment have been expensed, resulting in anticipated cost savings of up to $1 million per annum, with the full impact of these savings evident in the second half of FY25 and in future years.

The Board is confident that despite adverse economic conditions in Europe, Japan, and Korea, sales revenue will continue to grow. The company is working on adding a further distributor in North America and has identified a new approach to growing the number of distributors and sales in Europe, which will commence in January 2025 and involve offering a number of exclusive product-specific distributorships.