Star Combo Pharma’s Fire Claim Settlement Fuels Profit Surge but Raises Capacity Questions
Star Combo Pharma has reported a remarkable jump in profit for FY2025, driven by strong revenue growth and a settled insurance claim, while declaring its second dividend and planning production expansion.
- Profit after tax surged to $5.25 million from $0.73 million in FY2024
- OEM Division external sales more than doubled over five years
- Insurance claim from 2022 Smithfield fire successfully settled
- Second fully franked dividend declared
- Plans to increase production capacity by end of FY2026
Robust Financial Performance
Star Combo Pharma Limited (ASX – S66) has unveiled a strong financial performance for the year ended 30 June 2025, reporting a profit after tax of $5.25 million, a significant leap from the $0.73 million recorded in the previous year. This impressive growth was underpinned by sustained revenue increases and the finalisation of an insurance claim related to a fire incident at its Smithfield manufacturing facility in October 2022.
OEM Division Drives Growth
The company’s OEM Division has been a key growth engine, with external sales more than doubling over the past five years. This division’s momentum reflects Star Combo’s expanding footprint in contract manufacturing for vitamins, health, and beauty products, serving markets in Australia, Vietnam, and China. The division’s steady growth has been instrumental in bolstering the company’s profitability and market position.
Dividend Declaration Signals Confidence
In a move that signals confidence in the business’s stability and future prospects, Star Combo declared its second fully franked dividend since listing on the ASX in 2018. The dividend of $0.0037 per share is set with a record date of 15 October 2025 and payment scheduled for 31 October 2025. This step underscores the company’s improved profitability and commitment to delivering shareholder value.
Looking Ahead – Capacity Expansion
Group CEO Su Zhang highlighted the positive outlook for FY2026, emphasizing plans to bring additional production capacity online by the end of the next financial year. This expansion aims to support continued growth and meet increasing demand, reinforcing Star Combo’s position as a leading manufacturer of premium vitamins and dietary supplements in Australia.
With a foundation built on natural ingredients, rigorous scientific research, and adherence to high manufacturing standards governed by the Therapeutic Goods Administration, Star Combo is well-positioned to capitalize on its momentum and broaden its market reach.
Bottom Line?
Star Combo’s strong recovery and growth trajectory set the stage for a pivotal year ahead as it scales production to meet rising demand.
Questions in the middle?
- What is the exact financial impact of the insurance claim settlement on FY2025 results?
- How much additional production capacity is planned, and what will be its timeline?
- Will the company maintain or increase dividend payouts in FY2026?
