SDI Limited (ASX: $SDI) FY24 Trading Update

SDI Limited (ASX: $SDI) has reported a 3.2% increase in preliminary unaudited sales for the twelve months ending 30 June 2024, reaching $111.4 million compared to $107.9 million for the same period last year. The company also noted a significant rise in European sales, while experiencing a decline in Amalgam sales. Product margins saw a 490 basis points increase, attributed to enhancements in logistic costs, operational efficiencies, regional market performance, product mix, and favorable currency movements. Despite inflationary pressures, operating expenses remained well managed. The company anticipates the FY24 reported net profit after tax (NPAT) to be in the range of $9.5 million to $10.0 million, with underlying NPAT expected to be in the range of $10.5 million to $11.0 million after adjusting for asset impairments, compared to $7.1 million and $7.5 million respectively for the corresponding period last year. The Full Year results (Appendix 4E) are scheduled for release on August 27, 2024, with an investor conference call planned for 11:00am.

Executive Commentary

The company is pleased to announce the positive sales growth and improved product margins in FY24. The increase in European sales has been a significant contributing factor to the record performance. We have diligently managed operating expenses amidst inflationary pressures, which has positively impacted our bottom line. The anticipated NPAT range reflects our commitment to delivering sustainable growth and value to our shareholders. We look forward to sharing further insights during the investor conference call.

Summary

SDI Limited (ASX: $SDI) has achieved a 3.2% increase in preliminary unaudited sales for FY24, driven by a notable rise in European sales and improved product margins. Despite challenges in Amalgam sales and inflationary pressures, the company effectively managed operating expenses. The anticipated NPAT range of $10.5 million to $11.0 million demonstrates the company's focus on sustainable growth and value creation for shareholders. The upcoming release of Full Year results and the investor conference call present opportunities for stakeholders to gain deeper insights into the company's performance and future prospects.