Redox Ltd on Thursday reported record annual revenue of A$1.33 billion for the fiscal year ended June 30, 2026, a 6.9% increase from the prior year, driven by organic growth, contributions from the Molekulis acquisition, and expanded product lines.
The company’s gross profit rose 11% to A$298 million, lifting the gross margin by 80 basis points to 22.4%. Underlying earnings before interest, tax, depreciation, amortisation and foreign exchange (EBITDAFX) increased 9.9% to A$234 million, with a conversion margin of 44.8%. Statutory net profit after tax climbed 19.2% to A$92 million, while underlying net profit after tax rose 8.8% to A$87 million.
Free cash flow conversion strengthened to 62.5%, re-entering the company’s long-term target range of 60%–80%, with cash before financing at A$84 million. The balance sheet remained debt-free, with A$183 million in cash and short-term deposits. Return on equity stood at 15%, while return on invested capital rose 1.1 percentage points to 14.6%.
Australia accounted for 84% of revenue at A$1.12 billion, up 6.1% year-over-year, while New Zealand sales declined 4% due to softer demand in human health segments. North American revenue surged 33.8% to exceed USD 100 million for the first time, supported by expanded teams across multiple U.S. cities and growth across industrial, food, human health and personal care segments.
Redox added 47 new active products during the year, bringing its total SKUs to over 5,500 across more than 100 stock locations, serving 8,700 active customers and 1,200 suppliers. Operating expenses rose A$90 million to A$176 million, reflecting higher headcount, wage growth and incentive payments.
For the fiscal year ending June 30, 2027, management expects volume growth of 7% to 8%, with price inflation and replacement costs expected to become more visible in selling prices. The company targets at least one North American bolt-on acquisition in FY2027, typically valued between USD 30 million and USD 100 million in revenue.
Shares of Redox fell 3.16% to A$3.68 in midday trade, leaving the stock 11.5% below its 52-week high and 58.4% above its 52-week low. The company declared a final dividend of A$0.065 per share, bringing total FY2026 dividends to A$0.13 per share, a 4% increase year-over-year, with a payout ratio of 74%.
