Supply Network Limited Drives 18% Profit Growth Amid Major Expansion
Supply Network Limited has reported robust first half 2026 results, with double-digit profit growth and ambitious network expansion projects underway across Australia and New Zealand.
- Group sales revenue reaches $200.1 million, up 16.9%
- Profit after tax grows 18% on a like-for-like basis to $22.9 million
- Earnings per share rise 13.5% to 52.4 cents
- Major branch upgrades and relocations in Brisbane, Auckland, Toowoomba, and Perth
- On track to meet or exceed $50 million revenue growth target for FY2026
Strong Financial Performance
Supply Network Limited (SNL), a key player in automotive parts distribution, has delivered a solid financial performance for the first half of 2026. The company reported group sales revenue of $200.1 million, marking a 16.9% increase compared to the prior corresponding period. Profit after tax rose 18% on a like-for-like basis to $22.9 million, while earnings per share climbed 13.5% to 52.4 cents. These results underscore SNL’s steady growth trajectory amid a competitive market landscape.
Strategic Network Expansion
Behind this financial momentum lies a series of strategic network development projects designed to boost capacity and operational efficiency. Notably, the Darra branch in Brisbane underwent a significant upgrade in FY2025, doubling its operating capacity and stock holding. Current projects include a new branch in Auckland’s North Shore, scheduled to commence trading in March 2026, and relocations of existing branches in Toowoomba and Perth, expected to be operational by mid to late FY2027. Brisbane’s branch is also set for a major upgrade, more than doubling its storage and throughput capacity by the third quarter of FY2027.
Market Share Gains and Industry Trends
SNL’s trading operation, Multispares, continues to gain market share in the trucks 4-tonne-plus segment, reflecting broader industry trends where OEM and aftermarket parts are increasing their footprint. The company’s ability to navigate the competitive dynamics between genuine parts, OEM parts, and aftermarket alternatives positions it well to capture ongoing demand from both original equipment manufacturers and independent suppliers.
Outlook and Growth Targets
Looking ahead, SNL remains confident in its growth prospects. The company reaffirmed that there have been no material changes to market conditions or external factors that would impact its business development plans. With network and IT projects progressing on schedule and within cost expectations, SNL is on track to meet or exceed its ambitious $50 million revenue growth target for the full fiscal year 2026. Investors can expect more detailed financial commentary following the release of the FY2026 full-year results.
Bottom Line?
SNL’s blend of solid financial growth and strategic expansion sets the stage for a potentially transformative year ahead.
Questions in the middle?
- How will the completion of branch relocations and upgrades impact SNL’s market share in FY2027?
- What are the potential risks to the $50 million revenue growth target amid evolving market dynamics?
- Will SNL’s dividend policy or share buyback plans change following this strong half-year performance?
