"2023-2025? Your own graph. I am talking about recent revenue"
Arguably, focusing on recent revenue makes my argument for me hardly any different to that based on the long-term history.
In terms FY2024, Amalgam (which commenced the year at ~18% of Revenue) declined by 6.5%; yet total group revenue grew by 3.1%. Which means, if you solve the equation for what the non-Amalgam revenues did, means the core business streams grew by around 5% in FY2024.
And in FY2025, group sales remained flat on FY2024, but that was despite the fact that Amalgam sales (at the start of FY2025, Amalgam represented 16% of group Revenue) got crunched by 20%. So again, solving the compositional equation, says that core product revenues grew by ~4% in FY2025.
So, has been shown, SDI's core Revenue is growing just fine; however, looking in isolation at only at what the aggregate Revenue line is doing, is a bit of flawed approach and likely to give you a bum steer.
Because of the changing sales mix, Revenue analysis needs to occur in conjunction with Gross Profit Margin outcomes (no good driving aggressive revenue growth if it doesn't add any increase in contribution margin).
And to say that, what has happened to SDI's Gross Gross Profit Margin in recent years is satisfactory, is an understatement:
The resulting nominal dollar Gross Profits over the past two years went from $61.0m in FY2023 to $70.5m in FY2025, so that's an average growth rate of around 7.5%pa.
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SDI Price at posting:
88.5¢ Sentiment: None Disclosure: Held
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