• Sales down 1.5% to $51.5 million, but up 1.0% after adjusting for currency
• Strong growth in European and Brazilian sales, offset by weakness in Middle East, Asia, and Amalgam sales
• Gross profit margins increased to 63.5%, reflecting efficiencies and product mix

SDI Limited (ASX: SDI) today announced that preliminary unaudited sales in Australian Dollars for the six months ending 31 December 2024 were $51.5 million, down 1.5% on the prior corresponding period (pcp). However, after adjusting for currency movements, sales increased by 1.0%. The result reflects strong growth in European and Brazilian sales, up 9.7% and 9.2% respectively. This was offset by weakness in direct exports to the Middle East and Asia, as well as continuing weakness in Amalgam sales, down 14.6% on pcp and now representing 12.9% of total sales, with North America and Europe being the weakest regions. Gross profit margins for the first six months of the 2025 financial year increased to 63.5% compared to 61.5% for the pcp, reflecting continued efficiencies in production and product mix. Operating expenses continue to be well managed despite ongoing inflationary pressures, particularly relating to employment costs. For the six months ending 31 December 2024, reported net profit after tax is expected to be in the range of $3.4 million to $3.7 million compared to $3.7 million for the prior corresponding period. The Half Year results (Appendix 4D) will be released on February 27, 2025.