Victorian dental products manufacturer Southern Dental had given investors something to smile about with a record December half.
The company reported after tax profit up 11.9 per cent to $3.5 million, on turnover up 7.7 per cent to $40 million as the company continues to benefit from its strategy to develop new products in the post-amalgam era.
Aesthetics sales were up 15.3 per cent and whitening products up 16.3 per cent..
SDI was established in 1972 and now exports 90 per cent of its amalgams, composites, adhesives, and dental equipment to over 100 countries.
Many have been recently developed to fill a gap with the demise of amalgam fillings.
SDI CEO Samantha Cheetham said increased investment in sales and marketing had brought strong growth in product categories and regions the company is targeting.
Cheetham said: Gross margins have been particularly pleasing, reflective of a continuing shift towards our higher margin products.
“We are continuing to make improvements in our manufacturing processes, we are investing in research and development and we are growing faster than our peers in the global dental industry.”
In the half the company boosted marketing activities by 12 per cent, invested $1.8 million in equipment and earmarked an additional $300,000 for R&D.
The decline in the use of amalgams is still a major factor in many markets.
In Brazil sales of non-amalgam products are growing faster than amalgam decline, but in the United States alamgam is still 35.4 per cent of sales.
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