Redox Limited has reported solid half-year results for December 2025, with revenue climbing 6.6% to $673.6 million and profit after tax increasing 8.9% to $43.8 million. The company declared a fully franked interim dividend of 6.5 cents per share, underscoring its financial strength amid dynamic market conditions.
- 6.6% increase in revenue to $673.6 million
- 8.9% rise in profit after tax to $43.8 million
- 33% growth in North American market
- Declared fully franked interim dividend of 6.5 cents per share
- Net cash position of $145 million with strong balance sheet
Robust Financial Performance Amid Market Dynamics
Redox Limited has delivered a commendable half-year performance for the period ending 31 December 2025, reporting a 6.6% increase in revenue to $673.6 million. Profit after tax rose by 8.9% to $43.8 million, reflecting the company’s ability to navigate a complex global chemical distribution landscape. This growth was underpinned by a particularly strong 33% expansion in the North American market, driven by gains in the industrial and food sectors.
Operational Highlights and Expense Management
The company’s gross margin remained steady at 21.5%, consistent with historical levels, while operating expenses increased moderately due to annual salary increments, additional staffing to support sales growth, and higher insurance and compliance costs. Distribution and storage expenses rose in line with volume growth, reflecting the company’s expanding footprint and operational scale.
Strong Balance Sheet and Cash Flow Position
Redox maintains a robust financial position with $145 million in cash and short-term deposits, alongside net assets of $551.2 million. The company reported a significant increase in underlying net operating cash flow to $62 million, up from $12 million in the previous corresponding period. This strong liquidity position supports Redox’s strategic focus on organic growth and disciplined cost management.
Dividend and Shareholder Returns
Reflecting confidence in its ongoing performance, Redox declared a fully franked interim dividend of 6.5 cents per share, consistent with the prior period. The dividend payout ratio remains steady at 78%, signalling a balanced approach to rewarding shareholders while retaining capital for growth initiatives.
Outlook and Strategic Focus
Looking ahead, Redox acknowledges the dynamic nature of market conditions but remains optimistic about delivering continued growth through disciplined execution and geographic diversification. The company is particularly focused on strategic mergers and acquisitions in North America, aiming to capitalise on structural growth opportunities within the chemical and ingredients distribution sector. With zero net debt and a strong return on invested capital of 14%, Redox is well positioned to leverage its financial strength to capture emerging opportunities.
Bottom Line?
Redox’s half-year results reinforce its resilience and growth potential, setting the stage for strategic expansion and sustained shareholder value.
Questions in the middle?
- How will Redox’s planned M&A activities in North America impact future earnings?
- What are the risks associated with foreign exchange volatility on Redox’s profitability?
- How will rising operating expenses, particularly insurance and compliance costs, affect margins going forward?