IDT Australia (ASX: $IDT) reports $3.9 million comprehensive loss for HY24

IDT Australia Limited (ASX: $IDT) has reported a comprehensive loss of $3.9 million for the half-year ended 31 December 2023, compared to a loss of $2.5 million for the same period in 2022. The company's operating cash outflows for the half-year were $4.1 million, with a reported closing cash balance of $4.2 million at 31 December 2023. IDT Australia also holds an unused debt facility of $2.7 million, due for renewal on 31 October 2025, with National Australia Bank Ltd.

Executive Commentary on HY24 Performance and Strategic Focus

IDT Australia recorded growth across its three key business verticals in the first half of financial year 2024 (HY24), namely the manufacture of Active Pharmaceutical Ingredients (API), Specialty Orals, and Advanced Therapies. The total revenue increased by 137% to $5.8 million in HY24 compared to the previous corresponding period, and the net loss after tax improved to $3.9 million versus HY23 loss of $5.8 million before gain on Property revaluation of $3.3 million. The company strategically pivoted to focus on the integration of end-to-end pharmaceutical manufacturing, resulting in a three-year high in commercial contracts. Despite increased investments, the company's revenue from the three key business verticals collectively increased by 138% to $5.3 million over the previous corresponding period, setting the company up for further success in the current financial year.

Outlook and Future Plans

IDT Australia's strategic pivot to focus on end-to-end pharmaceutical manufacturing has shown promising results, with significant revenue growth and a strong pipeline of prospective sales leads, proposal requests, and new contracts won. The company's API business saw a substantial revenue improvement, while Specialty Orals recorded a 12.2% increase in revenue. Additionally, the company's Advanced Therapies business vertical showed significant growth potential, with revenue reaching $323K in HY24 compared to $42K in the previous corresponding period. IDT Australia remains committed to improving operations, onboarding digital systems, and driving down operating costs. The company also expressed confidence in its ability to continue as a going concern, supported by significant cash reserves and projected revenue growth. IDT Australia did not declare any dividends during the current or previous financial half-year.