Dental equipment and consumables manufacturer SDI (ASX: SDI) increased its profit and sales in the latest financial year as it navigates away from amalgam, the traditionally used material for filling teeth.
The Melbourne manufacturer today announced net profit after tax was up 29 per cent to $7.3 million on sales up 6.8 per cent to $79.7 million.
Sales growth was driven by export of aesthetic products and amalgams in the middle east, and rising aesthetics sales in Asia and Australia. South American markets were impacted by adverse economic conditions.
An ongoing decline in the market for amalgams, compositions of mercury and other metals for filling teeth, continues.
Amalgams now represent 22 per cent of sales, down from 43 per cent five year ago.
SDI makes a wide range of dental equipment and adhesives, alloys, composites, cements and accessories.
The company boosted investment in plant and equipment by $1.3 million during the year, investing in equipment to make new products and continuing its automation strategies.
Marketing spend increased $1.5 million as the company continues to promote its ‘non-amalgam’ image.
CEO Samantha Cheetham said the company expected the current sales trend and product mix to continue in the year ahead.
She said: “SDI will allocate its resources in R&D, sales and marketing and capital investment to build a sustainable product mix to increase its global market share.
“The company is actively exploring amalgam replacement products and has been awarded a $3 million Commonwealth Government grant to assist us.”
The company’s long term inventive programme which covers 38 staff globally cost $400,000.
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