Redox Limited reported record annual revenue and profit for the fiscal year ended June 30, 2026, though its shares slipped after the presentation. The specialty chemicals distributor posted revenue of $1.33 billion, up 6.9% year-over-year, alongside a statutory net profit after tax of $92 million, a 19.2% increase.
Gross profit reached $298 million, up 11%, with gross margin expanding to 22.4% from 21.6% in the prior year. EBITDA before exceptional items rose 9.9% to $134 million, equating to a 10.1% margin. Free cash flow conversion improved to 62.5%, up from 40.7% in FY25, while cash from operations totaled $88 million, compared with $48 million a year earlier. The company maintained a zero net debt position with $123 million in cash and cash equivalents, including $70 million in short-term deposits.
North American sales surged 33.8% to exceed $100 million for the first time, driven by broader market penetration. Australian revenue grew 6.1% to $1.12 billion, supported by acquisitions and demand in industrial and crop protection segments, while New Zealand revenue declined 4% to $100 million amid softer human health demand. Pro forma basic earnings per share rose 19.2% to 17.5 cents, and the company declared a final dividend of 6.5 cents per share, bringing the full-year total to 13 cents, a 4% increase. The payout ratio stood at 74%, within the company’s 60–80% target range.
Chief Executive Officer Raimond Coneliano noted that inflationary pressures, which began rising in February and March, are expected to become more visible in FY27. While Redox will continue assisting customers with cost management, management acknowledged that it cannot fully shield them from broader inflationary trends. The company also outlined a target M&A range for North American bolt-on acquisitions of $30 million to over $100 million in revenue, with at least one transaction anticipated in FY27. Volume growth for FY27 is projected at 7–8%, based on historical comparisons suggesting replacement cost inflation could reach 10–15% in the coming year.
Shares of Redox fell 3.16% to $3.68 following the presentation, despite the company’s record financial performance.
