All smiles as SDI reports profit jump

Dental research group SDI has reported a half-yearly jump in profits and sales on the back of its suite of aesthetic and alloy restorative products.

The Melbourne company also declared an interim dividend of 2 cents per share, to be paid on May 24.

The chairman's report, released to the Australian Stock Exchange yesterday, revealed group sales had risen 34 per cent to $15.7 million in the six months to December 31. SDI's after tax profit also rose by 35 per cent to $1.1 million.

It showed a net operating cash flow that had leapt 308 per cent to almost $2 million, helping to lift earnings per share to 4.9 cents compared to 3.6 per cent for the same period last year.

Chairman and director Russell Smith said the Bayswater company now exported about 95 per cent of its products to more than 75 countries.

Mr Smith said all of SDI's restorative products were selling well, including its new range of Pola tooth whiteners, with Latin America emerging as a growth area.

He said an AusIndustry grant of $2.1 million would help push forward the group's R&D program and would be dedicated to the development of new biomedical implant materials.

Mr Smith said new products expected to be released this year would add to the company's predicted growth in revenue.

"Our overseas entities and exclusive distributors are becoming more established in their own markets and hence demand for SDI products is increasing," he said.

The dental material industry continues to grow worldwide by 5.8 per cent per annum and the current estimate is that SDI has less than 2 per cent of the estimated US$1 billion global market of dental material implants providing scope for our planned growth."

Southern Dental Industries was founded in 1972 and listed on the Australian Stock Exchange in 1985.