Q4 2026 Redox Ltd Earnings Call

August 20, 2026

Speaker #1: Thank you for standing by, and welcome to the Redox Limited full-year 2026 results briefing. All participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the Redox Limited Full Year 2026 Results Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question via the phone, you will need to press the star key followed by the number one on your telephone keypad. If you wish to ask a question via webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Mr. Raimond Coneliano, with CEO. Please go ahead.

Speaker #1: If you wish to ask a question via the phones, you will need to press the star key, followed by the number 1 on your telephone keypad.

Speaker #1: If you wish to ask a question via webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Mr. Raymond Conliano, CEO.

Speaker #1: Please go ahead.

Speaker #2: Thank you. Good morning, and welcome to Redox Limited's FY26 full-year results briefing. I'm Raymond Conliano, Redox's CEO and Managing Director, and I'm joined today by our Chief Financial Officer, Kimya.

Raimond Coneliano: Thank you. Good morning, and welcome to Redox Limited's FY26 full year results briefing. I am Raimond Coneliano, Redox's CEO and Managing Director. I am joined today by our Chief Financial Officer, Kim Yap. Moving to slide 2. I will begin with the FY26 highlights and discuss our sales performance. Kim will then take you through the financial results, after which I will return to cover our strategy and outlook. We will conclude with questions. Change slide 4. Sales revenue increased 6.9% to a record AUD 1.33 billion in FY26. This was a good result in a generally subdued operating environment and was driven primarily by organic growth, supplemented by contributions from previously acquired businesses. Gross profit increased 11% to AUD 298 million, supported by an improved product mix and strong growth in North America.

Speaker #2: Moving to slide 2. I'll begin with the FY26 highlights and discuss our sales performance. Kim will then take you through the financial results, after which I will return to cover our strategy and outlook.

Speaker #2: We will conclude with questions. Turning to slide 4, sales revenue increased 6.9% to a record $1.33 billion in FY26. This was a good result in a generally subdued operating environment, and was driven primarily by organic growth, supplemented by contributions from previously acquired businesses.

Speaker #2: Gross profit increased 11% to $298 million, supported by an improved product mix and strong growth in North America. Gross profit margin increased by 0.8%.

Raimond Coneliano: Gross profit margin increased by 0.8 percentage points to 22.4%, again, demonstrating the resilience and breadth of our operating model. EBITDAfx increased 9.9% to AUD 134 million, and our conversion margin remained highly competitive at 44.8%. Statutory NPAT increased 19.2% to AUD 92 million. Pro forma basic earnings per share increased 19.2% to AUD 0.175, while after-tax ROIC increased by 1.1 percentage points to 14.6%. The board declared a final dividend of AUD 0.065 per share, bringing total FY26 dividends to AUD 0.13 per share and representing a payout ratio of 74%, within our target range of 60% to 80%. Moving to slide 5. Sales revenue increased 6.9% to AUD 1.33 billion. This was driven primarily by organic growth, including fully integrated acquired businesses and a full 12-month contribution by Molekulis. As the chart demonstrates, Redox has consistently produced sustained long-term growth, achieving a 30-year revenue CAGR of 10.1%.

Speaker #2: Percentage points to 22.4%, again demonstrating the resilience and breadth of our operating model. EBITDA RFX increased 9.9% to $134 million, and our conversion margin remained highly competitive at 44.8%.

Speaker #2: Statutory NPAT increased 19.2% to $92 million. Pro forma basic earnings per share increased 19.2% to 17.5 cents, while after-tax ROIC increased by 1.1 percentage points to 14.6%.

Speaker #2: The Board declared a final dividend of 6.5 cents per share, bringing total FY26 dividends to 13 cents per share and representing a payout ratio of 74%, which is within our target range of 60% to 80%.

Speaker #2: Moving to slide 5. Sales revenue increased 6.9% to $1.33 billion. This was driven primarily by organic growth, including fully integrated acquired businesses and a full 12-month contribution by Moleculus.

Speaker #2: As the chart demonstrates, Redox has consistently produced sustained long-term growth, achieving a 30-year revenue CAGR of 10.1%. We believe this validates our business model and broader strategy.

Raimond Coneliano: We believe this validates our business model and broader strategy. Geopolitical volatility affected product availability, demand, and replacement pricing during the year, particularly through the Middle East conflict and its broader macroeconomic and supply chain effects. Importantly, selling prices were broadly flat with FY25, although they increased in the second half. Growth was therefore primarily driven by volume. By volume. Sorry, apologies. My computer glitched there. By volume and mix rather than inflation. Gross profit margin rose to 22.4%, supported by an improved product mix in APAC and a strengthening margin profile in North America. Turning to slide 6. Australian sales increased 6.1% to AUD 1.120 billion, supported by growth across several of our largest industry segments and a healthy contribution from Molekulis, which continues to build sales of transformer oils to the energy generation and transmission sectors. We were particularly pleased with the momentum in our North American business.

Speaker #2: Geopolitical volatility affected product availability, demand, and replacement pricing during the year, particularly through the Middle East conflict and its broader macroeconomic and supply chain effects.

Speaker #2: Importantly, selling prices were broadly flat with FY25, although they increased in the second half. Growth was therefore primarily driven by volume. Sorry—apologies, my computer glitched there.

Speaker #2: By volume and mix, rather than inflation. Gross profit margin rose to 22.4%, supported by an improved product mix in APAC and a strengthening margin profile in North America.

Speaker #2: Turning to slide 6, Australian sales increased 6.1% to $1.12 billion, supported by growth across several of our largest industry segments and a healthy contribution from Moleculus, which continues to build sales of transform oils to the energy generation and transmission sectors.

Speaker #2: We were particularly pleased with the momentum in our North American business. Revenue exceeded $100 million for the first time, increasing 33.8% on the prior corresponding period.

Raimond Coneliano: Revenue exceeded AUD 100 million for the first time, increasing 33.8% from the prior corresponding period. This growth reflected new customer wins and increased share of wallet across the industrial, food, human health, and personal care segments. We also broadened our product range, adding 47 new active products during the year, and achieved further progress in the US Southeast and Canada. Moving to slide 7. This map demonstrates the breadth of our North American footprint. California remains our largest market, but we are now generating sales across most of the United States, as well as in Canada and Mexico. We have people on the ground in Seattle, Portland, Los Angeles, Columbus, Dallas, Houston, Orlando, and New Jersey, giving us a genuinely coast-to-coast presence. This growing local capability brings us closer to customers, improves our responsiveness, and allows us to offer innovative solutions to their chemical and ingredient sourcing needs.

Speaker #2: This growth reflected new customer wins and increased share of wallet across the industrial, food, human health, and personal care segments. We also broadened our product range, adding 47 new active products during the year, and achieved further progress in the US, Southeast Asia, and Canada.

Speaker #2: Moving to slide 7. This map demonstrates the breadth of our North American footprint. California remains our largest market, but we are now generating sales across most of the United States, as well as in Canada and Mexico.

Speaker #2: We have people on the ground in Seattle, Portland, Los Angeles, Columbus, Dallas, Houston, Orlando, and New Jersey, giving us a genuinely coast-to-coast presence. This growing local capability brings us closer to customers, improves our responsiveness, and allows us to offer innovative solutions to their chemical and ingredient sourcing needs.

Speaker #2: The North American market is highly fragmented and truly enormous. The United States alone presents a potential addressable market measured in the hundreds of billions of dollars.

Raimond Coneliano: The North American market is highly fragmented and truly enormous. The United States alone presents a potential addressable market measured in the hundreds of billions of dollars. As such, we believe there is considerable opportunity to greatly expand our presence across the continent. Kim will now take you through the financial results in more detail. Change to slide 8.

Speaker #2: As such, we believe there is considerable opportunity to greatly expand our presence across the continent. Kim will now take you through the financial results in more detail.

Speaker #2: Turning to slide 8.

Speaker #3: Thank you, Raymond, and good morning, everyone. Let's move straight to slide 9. This slide sets out the key profit and loss measures for FY26 compared to FY25.

Kim Yap: Thank you, Raimond, and good morning, everyone. Let's move straight to slide 9. This slide sets out the key profit and loss measure for FY26 compared to FY25. Revenue increased 6.9% to a record AUD 1.33 billion, with organic growth, particularly in North America, supplemented by contribution from Molekulis. Gross profit increased 11% to AUD 298 million. While our underlying EBITDAfx increased 9.9% to AUD 134 million. The underlying EBITDAfx margin increased by 0.3 percentage point to 10.1%. Underlying NPAT FX increased 8.8% to AUD 87 million. Pro forma basic earnings per share increased 19.2% to AUD 0.175, reflecting the highest statutory profit and the company's capital structure. ROIC increased by 1.1 percentage point to 14.6%, as higher operating earnings more than offset the additional capital invested in acquisitions and working capital. Moving to slide 10. Slide 10 provides further details on the revenue and gross profit by geography.

Speaker #3: Revenue increased 6.9% to a record $1.33 billion, with organic growth—particularly in North America—supplemented by the contribution from Moleculus. Gross profit increased 11% to $298 million.

Speaker #3: While our underlying EBITDA RFX increased 9.9% to $134 million, the underlying EBITDA RFX margin increased by 0.3 percentage points to 10.1%. Underlying NPAT RFX increased 8.8% to $87 million.

Speaker #3: Pro forma basic earnings per share increased 19.2% to 17.5 cents, reflecting the highest statutory profit and the company’s capital structure. ROIC increased by 1.1 percentage points to 14.6%, as higher operating earnings more than offset the additional capital invested in acquisitions and working capital.

Speaker #3: Moving to slide 10. Slide 10 provides further details on the revenue and gross profit by geography. Australian sales represented more than 84% of total revenue, an increase of 6.1%.

Kim Yap: Australian sales, while representing more than 84% of the total revenue, increased 6.1%. New Zealand sales declined 4%, with softer demand in human health segments while weighing on the results. North American revenue increased 33.8%, driven by expansion into new industry sectors, additional active products, and further customer wins. Gross profit margin increased 0.8 percentage point to 22.4%. The improvement reflected product mix, including a greater contribution from higher margin activity in North America. Turning to slide 11. Underlying operating expenses increased by AUD 90 million to AUD 176 million in FY26, reflecting both higher activity levels and increased investment in our capabilities. Distribution and storage expenses increased by AUD 6 million, principally due to higher sales volume, while fuel and transport costs also contributed. Administration expenses increased by AUD 8 million due to additional headcounts, wage growth, and incentive payment.

Speaker #3: New Zealand sales declined 4%, with softer demand in human health segments weighing on their results. North American revenue increased 33.8%, driven by expansion into new industry sectors.

Speaker #3: Additional active products and further customer wins. Gross profit margin increased 0.8 percentage points to 22.4%. The improvement reflected product mix, including a greater contribution from higher-margin activity in North America.

Speaker #3: Turning to slide 11, underlying operating expenses increased by $90 million to $176 million in FY26, reflecting both higher activity levels and increased investment in our capabilities.

Speaker #3: Distribution and storage expenses increased by $6 million, principally due to higher sales volume, while fuel and transport costs also contributed. Administration expenses increased by $8 million, due to additional headcount, wage growth, and incentive payments.

Speaker #3: We continue to invest selectively in our workforce, despite subdued market conditions, because we believe this will support future growth and strengthen our capabilities. Other expenses increased by $5 million.

Kim Yap: We continue to invest selectively in our workforce despite subdued market conditions because we believe this will support future growth, strengthen our capabilities. Other expenses increased by AUD 5 million, primarily reflecting a AUD 4 million movement in foreign exchange outcome on receipts. This was offset by the corresponding movement on payments, which reduced cost of goods sold. Despite these investments, our conversion margin remains highly competitive at 44.8%. Moving to slide 12. Cash flow from operation increased by AUD 40 million to AUD 88 million. Cash before financing was AUD 84 million, compared with AUD 59 million in FY25. Free cash flow conversion improved by 21.8 percentage point to 62.5%, returning to our long-term range of 60% to 80%. This demonstrates that the improvement in earnings translated into stronger cash generations, while the business continued to grow. Turning to slide 13. Net working capital was at AUD 470 million at year-end.

Speaker #3: Primarily reflecting a $4 million movement in foreign exchange outcome on receipts. This was offset by the corresponding movement on payments, which reduced cost of goods sold.

Speaker #3: Despite these investments, our margin conversion remains highly competitive at 44.8%. Moving to slide 12, cash flow from operations increased by $40 million to $88 million.

Speaker #3: Cash before financing was $84 million, compared with $59 million in FY25. Free cash flow conversion improved by 21.8 percentage points to 62.5%.

Speaker #3: Returning to our long-term range of 60 to 80 percent, this demonstrates that the improvement in earnings translated into stronger cash generation, while the business continued to grow.

Speaker #3: Turning to slide 13. Net working capital was at $470 million at year-end. As a percentage of revenue, it improved by 1.3 percentage points to 31.4%, and remained within our long-term range.

Kim Yap: As a percentage of revenue, it improved by 1.3 percentage point to 31.4% and remained within our long-term range. Cash and cash equivalent, including short-term deposits, were AUD 133 million, and the group remained in a zero net debt position. This provides sustainable capacity to fund organic growth and pursue strategic acquisitions which meet our investment criteria. Moving to slide 14. The board has declared a final dividend in FY26 of AUD 0.065 per share, in line with the FY25 final dividends. This brings total dividends of FY26 to AUD 0.13 per share, an increase of 4% on the prior year and represents a payout ratio of 74% of NPAT, within our target range of 60% to 80%. The record date is 26 August 2026, and the final dividend will be paid on 22 September 2026. I will now pass back to Raimond to cover our strategies and outlook.

Speaker #3: Cash and cash equivalents, including short-term deposits, were $123 million. The group remained in a zero net debt position. This provides substantial capacity to fund organic growth and pursue strategic acquisitions that meet our investment criteria.

Speaker #3: Moving to slide 14. The board has declared a final dividend in FY26 of 6.5 cents per share, in line with the FY25 final dividend.

Speaker #3: This brings total dividends for FY26 to 13 cents per share, an increase of 4% on the prior year, and represents a payout ratio of 74% of net PAT.

Speaker #3: Within our target range of 60 to 80 percent. The record date is 26 August 2026, and the final dividend will be paid on 22 September 2026.

Speaker #3: I will now pass back to Raymond to cover our strategies and outlook.

Speaker #2: Turning to slide 15. Thank you, Kim. The FY26 result demonstrates that Redox remains in very good shape, both operationally and financially. Moving to slide 16.

Raimond Coneliano: Turning to slide 15. Thank you, Kim. The FY26 result demonstrates that Redox remains in a very good shape, both operationally and financially. Moving to slide 16. At Redox, our vision remains unchanged. To develop an enduring network of customers and suppliers that creates mutual value. We support that vision by providing quality, competitively priced raw materials through responsive, personalized service. Today, Redox connects more than 8,700 active customers with more than 1,200 active suppliers across more than 5,500 SKUs and over 100 stock locations. This network is supported by our 494 team members and our internally developed RediBiz platform. Our long-term growth record reflects the strength of this model. While market conditions remain dynamic, our diversified platform, strong balance sheet, asset-light model, and disciplined approach to acquisitions position us well for the future. Change to slide 17.

Speaker #2: At Redox, our vision remains unchanged: to develop an enduring network of customers and suppliers that creates mutual value. We support that vision by providing quality, competitively priced raw materials through responsive, personalized service.

Speaker #2: Today, Redox connects more than 8,700 active customers with more than 1,200 active suppliers across more than 5,500 SKUs and over 100 stock locations. This network is supported by our 494 team members and our internally developed ReadyBiz platform.

Speaker #2: Our long-term growth record reflects the strength of this model. While market conditions remain dynamic, our diversified platform, strong balance sheet, asset-light model, and disciplined approach to acquisitions position us well for the future.

Speaker #2: Turning to slide 17. Although market conditions remain subdued and geopolitical uncertainty continues, the chemical distribution sector remains highly attractive. Its fragmented structure, essential role in global supply chains, and scope for consolidation provide meaningful opportunities for both organic growth and disciplined acquisitions.

Raimond Coneliano: Although market conditions remain subdued and geopolitical uncertainty continues, the chemical distribution sector remains highly attractive. Its fragmented structure, essential role in global supply chains, and scope for consolidation provide meaningful opportunities for both organic growth and disciplined acquisitions. Redox is well-positioned to capture those opportunities. We have strong commercial teams, proprietary systems, a robust balance sheet, and a diversified business model spanning industries, products, and geographies. We will continue investing in our people and product portfolio, expanding our North American platform, and assessing acquisitions that meet our strategic and financial criteria. Thank you for your interest in Redox. Kim and I will now be pleased to take your questions.

Speaker #2: Redox is well-positioned to capture those opportunities. We have strong commercial teams, proprietary systems, a robust balance sheet, and a diversified business model spanning industries, products, and geographies.

Speaker #2: We will continue investing in our people and product portfolio, expanding our North American platform, and assessing acquisitions that meet our strategic and financial criteria.

Speaker #2: Thank you for your interest in Redox. Kim and I will now be pleased to take your questions.

Speaker #1: Thank you. If you wish to ask a question via the phones, you will need to press the star key, followed by the number 1 on your telephone keypad.

Operator: Thank you. If you wish to ask a question via the phones, you will need to press the star key followed by the number one on your telephone keypad. If you wish to ask a question via the webcast, please type your question into the ask a question box. Your first question today is a phone question from Vignesh Nair with UBS. Please go ahead.

Speaker #1: If you wish to ask a question via the webcast, please type your question into the Ask a Question box. Your first question today is a phone question from Vignesh Nair with UBS.

Speaker #1: Please go ahead.

Speaker #4: Good morning, Raymond and Kim. Thank you for your presentation. Can you hear me?

Vignesh Nair: Good morning, Roman and Kim. Thank you for this presentation. Can you hear me?

Speaker #2: Yep, great to hear from you.

Raimond Coneliano: Yep. Great to hear from you, Vignesh.

Speaker #4: Amazing. The first question: it clearly looks like a backdrop of supply chain stresses and a real tailwind for the business, particularly over the second half.

Vignesh Nair: Amazing. First question. It certainly looks like the backdrop of supply chain stresses and a real tailwind for the business, particularly over the H2. I suppose I just want to get some further color on the durability of the gross margins you've delivered. You've got 80 basis points of an uplift against FY25 over FY26, and particularly, 180 basis points in the H2 versus the H1. As I understand it, a lot of the benefits from the market disruption should flow into H1 2027. I just wanted to get some color on what style of gross margins investors can expect into H1 2027 and maybe beyond as well.

Speaker #4: I suppose I just wanted to get some further color on the durability of the gross margins you've delivered. You've got sort of 80 basis points of an uplift against FY25 over FY26.

Speaker #4: In particular, 180 basis points in the second half versus the first half. As I understand it, a lot of the benefits from the market disruption should flow into the first half of 2027.

Speaker #4: So I just wanted to get some color on what style of gross margins investors can sort of expect into the first half of 2027 and maybe beyond as well.

Speaker #2: Yeah, yeah, thanks for that question. You're right. I guess what you have to think about is the sort of volatility that we've experienced, particularly through the Middle East conflict. What that does is increase the value of the service and the products that Redox provides, because we're, in a way, helping our customers deal with that volatility.

Raimond Coneliano: Yeah. Thanks for that question. You are right. I guess what you have to think about is the sort of volatility that we have experienced, particularly through the Middle East conflict. What that does is increases the value of the service and the products that Redox provides because we are, in a way, helping our customers deal with that volatility. I think they realize that, recognize that, and there is more value in those times. So naturally, we are rewarded for our ability to help them through those sort of problems. So yeah, you are right. In the second half, there was some tailwinds from that. You have to also recognize that there were products that we would like to have got more product out of the Middle East, obviously, or other partners who were not able to supply. So it is not all upside. There is some downside there.

Speaker #2: And I think they realize that, recognize that, and there's more value in those times. So, naturally, we're rewarded for our ability to help them through those sort of problems.

Speaker #2: So, yeah, you're right. In the second half, there were some tailwinds from that. But you also have to recognize that there were products where we'd have liked to get more product out of the Middle East, obviously, or from other partners, who weren't able to supply.

Speaker #2: So, it's not all upside; there is some downside there. But we're very good at managing that, and managing disruptions and volatility, and our customers obviously reward us for that. As we consider going into FY27—which is the second part of your question—what's our outlook?

Raimond Coneliano: We are very good at managing that and managing disruptions and volatility and our customers obviously reward us for that. We consider going into FY27, which is the second part of your question now, what is our outlook? We think there is more inflation to come, more higher prices. Those higher replacement costs, which started somewhere in February, March, that will start being reflected into our selling prices coming into FY27. Obviously, we will do our best to help clients through, but we cannot shield them from every price increase.

Speaker #2: We think there's more inflation to come, more higher prices, those higher replacement costs, which started somewhere in February or March. That'll start being reflected in our selling prices coming into FY27.

Speaker #2: Obviously, we'll do our best to help clients through, but we can't shield them from every price increase.

Speaker #4: Okay, that's helpful. And the second question, I suppose, is that there’s not really any new news incrementally on inorganic growth opportunities in the US. Is it possible to get some more color on opportunities you're exploring in the US market at the moment?

Vignesh Nair: Okay. That is helpful. The second question, I suppose, no real news incrementally on inorganic growth opportunities in the US. Is it possible to get some more color on opportunities you are exploring in the US market at the moment? Is the size of the targets still in that USD 50 to 100 million US range I think you have mentioned in the past? Maybe some color on indicative timing would be pretty helpful. Thank you.

Vignesh Nair: Okay. That is helpful. The second question, I suppose, no real news incrementally on inorganic growth opportunities in the US. Is it possible to get some more color on opportunities you are exploring in the US market at the moment? Is the size of the targets still in that USD 50 million to 100 million US range I think you have mentioned in the past? Maybe some color on indicative timing would be pretty helpful. Thank you.

Speaker #4: Is the size of the targets still kind of in that $50 million to $100 million US range? I think you've mentioned that in the past.

Speaker #4: And maybe some color on indicative timing would be pretty helpful. Thank you.

Speaker #2: Yep. What did I say about a watched pot never boiling? Well, look, we are very hard at work. Our teams have been hard at work throughout the year.

Raimond Coneliano: Yeah. What do they say about watching a pot that never boils? Well, look, we are very hard at work. Our teams have been hard at work through the year on that pipeline. It is a good pipeline. I am happy with it. Things have dropped out of that pipeline, quite frankly, things that we were not happy with during the various processes. That is part of doing this in a diligent way, in a careful way, a considered way, looking at the full strategic benefits they may offer. We are very careful. We do not make any apologies for that. But look, we would have hoped to have one done by the end of the FY26 financial year. I am still confident we will get one done this financial year, but let us see. You cannot predict and you cannot rush or prejudge these things.

Speaker #2: On that pipeline, it's a good pipeline. I'm happy with it. Things have dropped out of that pipeline, quite frankly—things that we weren't happy with during the various processes.

Speaker #2: And that's part of doing this in a diligent way, in a careful way, a considered way—looking at the full strategic benefits they may offer. We're very careful.

Speaker #2: We don't make any apologies for that. But look, we would have hoped to have one done by the end of the FY26 first half. I'm still confident we'll get one done this financial year, but let's see.

Speaker #2: You can't predict and you can't rush or prejudge these things. So we're very happy with the pipeline of opportunities that are in the, let's say, $30–40 million US revenue range, up to over $100 million US revenue.

Raimond Coneliano: So, we are very happy with the pipeline of opportunities in the, let's say, 30, 40 million US revenue up to over 100 million US revenue. So, we feel comfortable in that range. That suits us. I think I have said before, Vignesh, we are not looking for transformational M&A. We are looking for bolt-on size acquisitions around that 10% of our current revenue, we would be pretty comfortable with.

Speaker #2: So we feel comfortable in that range that suits us. I think I've said before, Vignesh, we're not looking for transformational M&A; we're looking for bolt-on, sort of size acquisitions.

Speaker #2: Around 10% of our current revenue would be something we’d be pretty comfortable with.

Speaker #4: Amazing. That's very helpful. Thank you, Raymond. That's all from me.

Vignesh Nair: Amazing. That is very helpful. Thank you, Raimond. That is all for me.

Operator: Thank you. Once again, if you wish to ask a question on the phones, please press star 1. Your next phone question is from Jenny Wang with Morgan Stanley. Please go ahead.

Speaker #1: Thank you. Once again, if you wish to ask a question on the phones, please press star one. Your next phone question is from Channie Wang with Morgan Stanley.

Speaker #1: Please go ahead.

Speaker #4: Hey, morning guys. Thanks for taking my question. I've got a few. Maybe just firstly on that price dynamic—I'm keen to unpack what you saw on that in the second half.

Jenny Wang: Hey, morning guys. Thanks for taking my question. I have got a few, maybe just firstly on that price dynamic. I am keen to unpack what you saw on that in the H2. You mentioned, it increased half on half, but how meaningful was that? And yeah, I guess, just taking some cues from maybe some of your global peers, it does feel like in that June quarter, there were some pretty significant price spikes on the commodity side. But in your kind of commentary, it sounded much more subdued for you guys. So just kind of interested in getting more color there.

Speaker #4: You mentioned you increased half-on-half, but how meaningful was that? And yeah, I guess just taking some cues from maybe some of your global peers, it does feel like in that June quarter there were some pretty significant price spikes on the commodity side, but in your commentary, it sounded much more subdued for you guys.

Speaker #4: So, just kind of interested in getting more color there.

Speaker #2: Yeah, thanks for the question. I think if you're looking at our peers overseas for comparisons—and I know I've had a look at their results too—if you think about it, they're much closer to the origin of a lot of these products; let's say, in Europe for the Europeans, or in the US for the Americans.

Raimond Coneliano: Yeah. Thanks for the question. I think if you are looking at our peers overseas for comparisons, and I know I have had a look at their results too. If you think about it, they are much closer to the origin of a lot of these products, let us say, in Europe for the Europeans or in the US for the Americans. Whereas here in Australia it takes many months for us to ship the goods, let alone get them into our store and out to customers. So the effect is somewhat more lagged for an Australian, New Zealand predominant business. So I think that explains the difference in timing. What you have seen there from some of those peers internationally is they started feeling it much earlier than we have. I think it is safe to say Q4 was where it started being felt.

Speaker #2: And so, whereas here in Australia, it takes many months for us to ship the goods, let alone get them into our store and out to customers.

Speaker #2: So the effect is somewhat more lagged for an Australian/New Zealand predominant business. So I think that explains the difference in timing. What you’ve seen there from some of those peers internationally is, they started feeling it much earlier than we have.

Speaker #2: I think it's safe to say Q4 was where it started being felt—replacement costs that went up in February and Q1, and so forth.

Raimond Coneliano: Replacement costs that went up in February and Q1 and so forth, started to be felt towards the end of Q4. So that is why I am saying that it is certainly more of an FY27 story, I imagine, than an FY26 story. I think that is good because for Redox we pass those costs along. And we have been able to do that quite effortlessly, and we will continue to do so. It is that sort of business.

Speaker #2: It started to be felt towards the end of Q4, so that's why I'm saying it's certainly more of an FY27 story, I imagine, than an FY26 story.

Speaker #2: I think that's good because, for Redox, we passed those costs along, and we've been able to do that quite effortlessly. We'll continue to do so.

Speaker #2: It's that sort of business.

Speaker #4: Got it. No, that's super helpful. And maybe just on that—yeah, I guess you have kind of mentioned that, look, there's more of that price inflation to come.

Jenny Wang: Got it. No, that is super helpful. And maybe just on that and, yeah, I guess you have kind of mentioned that, look, there is more of that price inflation to come. And I am sorry, Raimond, but I am going to ask for a crystal ball here because when you kind of look at some of the global data, like that price inflation can get pretty large. So yeah, is there a ballpark figure that we should be thinking about at least kind of for the next 6 months just so we do not get carried away?

Speaker #4: And I'm sorry, Raymond, but I'm going to ask for a crystal ball here because, when you kind of look at some of the global data, that price inflation can get pretty large.

Speaker #4: So yeah, is there a ballpark figure that we should be thinking about, at least for the next six months, just so we don't get carried away?

Speaker #2: Yes, I'd like you not to be carried away. Did you hear? Look, I think maybe let's just think about what's happened in the past, sort of past events, and maybe that can help you.

Raimond Coneliano: Yes. I would like you not to be carried away. With you here. Look, I think maybe let us just think about what has happened in the past, sort of past events, and maybe that can help you. During the GFC or the run-up to the GFC, I think our products inflated by about 10% to 15%, and deflated some portion of that afterwards. In COVID, that inflation was more like 15%, 20%, so very strong event then. We think it is somewhere more towards the GFC side of that ledger, but we are not sure yet. I mean, it will take time and let us see. But it could be in that range, but we are not making any firm predictions. It is too early to do that. Let us see how things unfold. It all depends on. At the moment, we have two sort of broad baskets of products.

Speaker #2: During the GFC, or the run-up to the GFC, I think our products inflated by about 10 to 15 percent, and deflated some portion of that.

Speaker #2: Afterwards, in COVID, that inflation was more like 15 to 20 percent—so a very strong event then. We think it's somewhere more towards the GFC side of that ledger, but we're not sure yet.

Speaker #2: I mean, it'll take time. And let's see. But it could be in that range. But we're not making any firm predictions—it's too early to do that.

Speaker #2: Let's see how things unfold. It all depends on, at the moment, we have two sort of broad baskets of products: products which are directly inflating because of the direct effects of the Middle East conflict.

Raimond Coneliano: Products which are very directly inflating because of the direct effects of the Middle East conflict. We can think about petrochemicals in that bucket, plastics in that bucket, urea, some fertilizers. Those things directly made in the Middle East or very reliant on oil for their actual makeup. Then you can think about another basket, which just is collateral damage in things because it has the higher freight costs or the higher transport costs or higher wage costs or all the things that are coming as a macro effect of the Middle East and inflation effect. So in those two buckets, some things are meeting very high demand and some are meeting very low demand. So it is just to say that it is not an easy number to pull out, but it is certainly there. It is certainly a real thing, and I appreciate everyone wants to know exactly how much.

Speaker #2: We can think about petrochemicals in that bucket, plastics in that bucket, urea, some fertilizers—those things directly made in the Middle East or very reliant on oil.

Speaker #2: For their actual makeup. And then you can think about another basket, which is just collateral damage in things because it has the higher freight costs, or the higher transport costs, or higher wage costs, or all the things that are coming as a macro effect of the Middle East inflation effect.

Speaker #2: So in those two buckets, some things are meeting very high demand and some are meeting very low demand. So it's just to say that—to pull that out—but it's certainly there.

Speaker #2: It's certainly a real thing, and I appreciate that everyone wants to know exactly how much. I'd love to have that crystal ball too. But I think, looking at the past, you can see 10–15 percent wouldn't be outrageous. But it really depends on how long things go on.

Raimond Coneliano: I would love to have that crystal ball too. But I think looking at the past, you can see 10%, 15% wouldn't be outrageous, but it really depends on how long things go on. It also depends on the demand side. Higher prices will act to push down demand for some customers in some industries and it is quite hard to always predict that. But till now, customers are pretty. The economy is doing okay. It is not doing great, but it is going along so.

Speaker #2: And it also depends on the demand side. Higher prices will act to push down demand for some customers. In some industries, it's quite hard to always predict that.

Speaker #2: But till now, customers are pretty— the economy is doing okay. It's not doing great, but it's going along, so.

Speaker #4: Yeah, got a note. That's super helpful. And maybe, given that you kind of touched on that demand side—and maybe you've already answered this question, so my apologies—but I was just hoping to get some color on ordering patterns over the half.

Jenny Wang: Yeah. Got it to note. That is super helpful. Maybe given that you kind of touched on that demand side, and maybe you have already answered this question, so my apologies. But I was just hoping to get some color on ordering patterns over the H1. Obviously, when the Middle East conflict broke out, it felt like maybe a bit of similar reaction to when the tariffs were announced last year, in terms of that kind of shock. But just maybe some color on those ordering patterns over the H1 and as those price increases have started to flow through here in Australia, how those ordering patterns look now.

Speaker #4: Obviously, when the Middle East conflict broke out, it felt like maybe a bit of a similar reaction to when the tariffs were announced last year, in terms of that kind of shock.

Speaker #4: But just maybe some color on those ordering patterns over the half, and as those price increases have started to flow through here in Australia, how do those ordering patterns look now?

Speaker #2: I understand the question. I guess immediately when the war broke out, we had a lot of—we're lucky we have a lot of good stock positions around the company.

Raimond Coneliano: I understand the question. I guess, immediately when the war broke out, we are lucky we have a lot of good stock positions around the company. So certainly a lot of customers were very keen to get a hold of that stock and so orders did increase pretty rapidly, as it was clear what was unfolding. So they sort of flew up a bit and have come back down a little bit now, but they are still healthy, still representing 4 and a half odd months of forward sales. So very comfortable where they are right now.

Speaker #2: So, certainly, a lot of customers were very keen to get a hold of that stock, and so orders did increase pretty rapidly as it was clear what was unfolding.

Speaker #2: So, they sort of flew up a bit and have come back down a little bit now, but they're still healthy—still representing four and a half-odd months of forward sales.

Speaker #2: So they're very comfortable where they are right now.

Speaker #4: Got it. And then, sorry, just one last one from me. Can you guys help us understand the FX impact in the second half on Redox?

Jenny Wang: Got it. Just one last one from me. Can you guys help us understand the FX impact in the H2 on Redox? It sounds like there is going to be some sales headwind given the translation. I think in your presentation or prepared remarks, you also called out some COGS benefit. I just wanted to understand that better given the strength of the Aussie.

Speaker #4: It sounds like there's going to be some sales headwind given the translation, but thinking back to your presentation or prepared remarks, you also called out some COGS benefit.

Speaker #4: So yeah, I just wanted to understand that better, given the strength of the Aussie.

Speaker #2: Yeah, well, I mean, it really depends on whether it's a US dollar strength on its own against the basket of currencies, or if it's an Aussie dollar strength story.

Raimond Coneliano: Well, it really depends on whether it is a USD strength on its own against a basket of currencies or it is an Aussie dollar strength story. If for instance, it is a story of the Aussie dollar outperforming all currencies, then you will see prices for our goods fall quite a lot. If it is just a USD weakness, then you might not see much effect because our suppliers will increase their prices in USD, in order to receive the same sort of money in their local currency. I think that is pretty clear. You cannot control the FX effect, so we do not spend a lot of time worrying about them. I know you have a model there you are trying to furiously put together. The effect that is called out on one of the slides there is really, you have to kind of deep dive into it.

Speaker #2: And so, if, for instance, it's a story of the Aussie dollar outperforming all currencies, then you will see prices for our goods fall quite a lot.

Speaker #2: If it's just a US dollar weakness, then you might not see much effect because our suppliers will increase their prices in US dollars in order to receive the same sort of money in their local currency.

Speaker #2: So I think that's pretty clear. You can't control the effects—effects. So, we don't spend a lot of time worrying about them. I know you have a model there.

Speaker #2: You're trying to furiously put together the effect that's called out on one of the slides. There, really, you have to kind of deep dive into it.

Speaker #2: It's the effect of when we sell US dollar amounts in Australia—sell goods in US dollars in Australia—the difference between the point at which we make those sales and receive payment for those sales.

Raimond Coneliano: It is the effect of when we sell USD amounts in Australia, sell goods in USD in Australia, the difference between the point at which we make those sales and receive payment for those sales. Then there is an equal and opposite movement when we pay our suppliers, when we receive our goods and we pay our suppliers. There is an accounting thing there which offsets each other. It is really not much of an important effect really in the scheme of things, but it has to go on that slide, compliant to your local accounting standards bureau, I guess.

Speaker #2: And then there's an equal and opposite movement when we pay our suppliers, when we receive our goods and we pay our suppliers. And so there's an accounting thing there which offsets each other.

Speaker #2: So, it's really not much of an important effect, really, in the scheme of things, but it has to go on that slide—compliance with local accounting standards bureau, I guess.

Speaker #4: Awesome. Thanks, guys.

Jenny Wang: Awesome. Thanks, guys.

Speaker #1: Yeah, next question comes from James Tracy with Blue Ocean Equities. Please go ahead.

Operator: Your next question comes from James Tracey with Blue Ocean Equities. Please go ahead.

Speaker #5: Yes, hi Raymond and Kim. Thanks for taking my question. When we spoke last, six months ago, I guess there was a bit of concern about low, sort of, deflation in the Chinese prices of a basket of chemicals.

James Tracey: Yes. Hi, Raimond and Tim. Thanks for taking my question. When we spoke last 6 months ago, I guess there was a bit of concern about low sort of deflation in the Chinese prices of a basket of chemicals. It appears as though that has changed a little bit with the disruption from Iran. Could you just give a bit of color on how that has evolved through the H2 and what your expectations are based on conversations with suppliers around, I guess, the local currency pricing for a lot of your inputs?

Speaker #5: It appears as though that's changed a little bit with the disruption from Iran. Could you just give a bit of color on how that's evolved through the half, and what your expectations are based on conversations with suppliers around, I guess, the local currency pricing for a lot of your inputs?

Speaker #2: Yeah, thanks for the question. I guess, really, the last two and a half financial years, prices have been flat. They've not deflated; they've just been flat for that whole time.

Raimond Coneliano: Yeah. Thanks for the question. I guess, for really the last 2 and a half years, financial years, prices have been flat. They have not deflated, they have just been flat for that whole time. So 2 and a half financial years being flat is a long time. It was due some inflation and the trigger I thought was going to be more of an economic recovery and a bit more verve and vitality in end markets. But as it turns out really, it was a supply shock in the Middle East because of the conflict. Yeah, that is the story till now. I think everyone is very keen to understand the future and I understand why. But some products are meeting lower demand, a subdued demand environment and some are very short and hard to get ahold of.

Speaker #2: So, two and a half financial years being flat is a long time. And so, it was due some inflation, and the trigger, I thought, was going to be more of an economic recovery and a bit more verve and vitality in end markets.

Speaker #2: But as it turns out, really, it was a supply shock in the Middle East because of the conflict. So, yeah, that's the story till now.

Speaker #2: I think everyone is very keen to understand the future, and I understand why, but some products are meeting lower or subdued demand environments, and some are very short and hard to get a hold of.

Speaker #2: The Chinese have put in place some export controls in China to protect their fertilizer market, for instance. That has impacted the amount of nitrogen fertilizers we can source out of China.

Raimond Coneliano: The Chinese have put in place some export controls in China to protect their fertilizer market, for instance. That has impacted the amount of nitrogen fertilizers we can source out of China, and we have to make other arrangements. So there are some strings and roundabouts, and that changes week to week depending on policy. Yeah. But prices going forward, we do not know. All we can say is, the replacement costs, which started increasing as the war sort of took off, are being recognized in our selling prices now in Q4 and going into the new financial year.

Speaker #2: And we had to make other arrangements. So, there are some swings and roundabouts, and that changes week to week depending on policy. Yeah, but prices going forward—we don't know.

Speaker #2: All we can say is the replacement cost, which started increasing as the war sort of took off, is being recognized in our selling prices now in Q4 and going into the new financial year.

Speaker #5: Okay. And just to follow up on that—because it sounds like some of the things other companies have been talking about—we’ll be able to see those in the first half for you?

James Tracey: Okay. Just to follow up to that, because it sounds like some of the things other companies have been talking about, we will be able to see those in the H1 for you, with that 10% to 15% pricing that you sort of indicated. What do you anticipate the volume response would be to higher prices or is it relatively inelastic demand, so it will not have a massive impact?

Speaker #5: With that 10 to 15 percent pricing that you sort of indicated, what do you anticipate the volume response would be to higher prices, or is it relatively inelastic demand?

Speaker #5: So it won't have a massive impact.

Raimond Coneliano: Well, it is really hard to tell and all I can say is our order book is strong, so that does not signal any material change in demand. Of course, we are talking about demand as if we have got the whole market, but actually our market is huge. Our addressable market in the US is hundreds of billions of dollars. In Australia, it is AUD 40 billion or thereabout. So, we are always trying to take market share from our competition and so while demand can ebb and flow, really our business is built around taking market share. So whether the market is going to grow x, 0.5% or 1% or 2% or 10%, yes, it is important, but we cannot forecast that very easily. Most of our business is taking market share off competition. So, it is only so useful to us.

Speaker #2: It's really hard to tell. All I can say is our order book is strong, so that doesn't signal any material change in demand.

Speaker #2: And of course, we're talking about demand as if we've got the whole market. But actually, our markets are huge right now. Our addressable market in the US is hundreds of billions of dollars, and in Australia it's $40 billion or thereabouts.

Speaker #2: So, we're always trying to take market share from our competition. And so, while demand can ebb and flow, really, our business is built around taking market share.

Speaker #2: So whether the market is going to grow 0.5% or 1% or 2% or 10%, it's sort of yes, it's important, but we can't forecast that very easily.

Speaker #2: And most of our business is taking market share from the competition, so it's only so useful to us.

Speaker #5: Thanks, Raymond.

Kim Yap: Thanks, Raimond.

Speaker #1: Thank you. There are no further questions on the phone line at this time. I'll now hand back over.

Operator: Thank you. There are no further questions on the phone line at this time. I will now hand back over.

Speaker #2: Thank you. There's one question from the webcast. Raymond, are you still looking at acquisitions around the world or only in the USA? Yeah, good question.

[Company Representative] (Redox): Thank you. Just one question from webcast. Raymond, are you still looking at acquisitions around the world or only in the USA?

Raimond Coneliano: Well, good question. We have a medium-term focus on North America that I think I have shared pretty carefully with you today. We do have opportunities elsewhere in the world. I would say it is not the right time for further expansion, in Europe or Asia or South America. Asia is the other, we have a Malaysian business. We sell into Singapore. I think we have ambitions to also start exploring Asia. For right now, North America is our focus and we do not want to be pulled in too many directions. We think we have got a really great offering, and you can see from our results we are doing really well in North America and Canada and Mexico, in the US, and it is such a happy hunting ground for us. We are going to keep doing that.

Speaker #2: I mean, we have a medium-term focus on North America that I think I’ve shared pretty carefully with you today. We do have opportunities elsewhere in the world.

Speaker #2: I'd say it's not the right time for further expansion in Europe, Asia, or South America. But Asia is—well, we have a Malaysian business.

Speaker #2: We sell into Singapore. I think we have ambitions to also start exploring Asia, but for right now, North America is our focus. We don't want to be pulled in too many directions.

Speaker #2: And we think we've got a really great offering. You can see from our results that we're doing really well in North America, including Canada, Mexico, and the US.

Speaker #2: And it's such a happy hunting ground for us. We're going to keep doing that. And of course, always open to opportunities here in Australia, and we're talking to a lot of folks here in Australia about possibly them joining their business with ours.

Raimond Coneliano: Of course, always open to opportunities here in Australia, and we are talking to a lot of folks here in Australia about possibly them joining their business with ours, and we think there are some good opportunities there. Let us see. North America is our primary focus for now.

Speaker #2: And we think there are some good opportunities there, so let's see. But yes, North America is our primary focus for now. Thank you. Further questions?

[Company Representative] (Redox): Thank you. A further question. What was the level of organic growth in Australia in FY26?

Speaker #2: What was the level of organic growth in Australia in FY26? I don't have the number in front of me, but I mean, we had no acquisitions in FY26, but we did have a full 12 months of Moleculars.

Raimond Coneliano: I do not have the number in front of me, but the only acquisition, we had no acquisitions in FY26, but we did have a full 12 months of Molekulis, whereas the year before, we only had, what, how many months?

Speaker #2: Whereas the year before, we only had—what, how many months?

Speaker #3: Ten months in FY25. Two months in FY25. So it's ten months of contribution in FY26.

Kim Yap: 10 months in FY25. Two months into FY25. So it is 10 months of contribution FY26.

Speaker #2: Yeah, so, yeah. So that, but I don't have the number to hand. But look, clearly, it was mostly organic growth. Moleculars as a business had revenues of...

Raimond Coneliano: But I do not have the number to hand. But look, clearly it was mostly organic growth. Molekulis as a business had revenues of-

Speaker #3: Including within those?

Kim Yap: AUD 30 million

Speaker #2: $30 million Aussie on acquisition, and they're doing well while under Redox's ownership. So, yeah.

Raimond Coneliano: AUD 30 million of it on acquisition, and they are doing well while under Redox's ownership.

Speaker #3: Thank you. One further question—how is volume growth tracking to start FY27?

[Company Representative] (Redox): Thank you. One further question. How is volume growth tracking to start FY27?

Speaker #2: Yeah, I really don't want to get into kind of the future, and we may have updates at the AGM, but for now, look, the business is on a really great track.

Raimond Coneliano: Well, I really do not want to get into the future, and we may have updates at the AGM. But for now, look, the business is on a really great track, and you can hear from the comments I have made today, there is a lot of things working in our favor as a business, and we have got a great Platform and we are growing really strongly and our US business is doing really well. So we have got a lot going for us and steady as she goes.

Speaker #2: And you can hear there from the comments I've made today, there's a lot of things working in our favour as a business. And we've got a great platform.

Speaker #2: And we're growing really strongly, and our U.S. business is doing really well. So we've got a lot going for us. And steady as she goes.

[Company Representative] (Redox): A further question which sort of backtails the previous question. To help better understand the current momentum in business, can you please talk to the size of revenue growth/GP growth in the last quarter of FY26 or start of FY27 so far? I think you answered the FY26.

Speaker #3: Further question, which sort of backs the previous question. To help better understand the current momentum in the business, can you please talk to the size of revenue growth slash GP growth in the quarter—in the last quarter of FY26?

Speaker #3: Or start of FY27 so far. I think you've answered the FY27.

Speaker #2: Yeah, look, I'm not going to get into quarterly breakdowns. I don't have the numbers in front of me anyway, but certainly, look, as I said before, prices started inflecting in Q4.

Raimond Coneliano: Yeah. Look, I am not going to get into quarterly breakdowns. I do not have the numbers in front of me anyway. But certainly, look, as I said before, prices started inflecting in Q4, so that was a benefit to us. I will just say that volume growth is still very strong and very similar to the long-term performance of Redox. We have got price inflation now, which is going to provide some tailwind coming into the new year. So we expect, as we always have, to grow around that sort of 7% or 8% in volume. We expect this year there will be a kicker in that we will have some price inflation to help us, at least at the start of the year, evidently.

Speaker #2: So, that was a benefit to us. And I'll just say that volume growth is still very strong, and very similar to the long-term performance of Redox.

Speaker #2: And we've got price inflation now, which is going to provide some tailwinds coming into the year. So we expect, as we always have, to grow around that sort of 7 or 8 percent in volume.

Speaker #2: And we expect this year there'll be a kicker in that we'll have some price inflation to help us, at least at the start of the year, evidently.

Speaker #3: There are no further webcast questions.

[Company Representative] (Redox): There are no further webcast questions.

Speaker #2: All right.

Raimond Coneliano: Great.

Speaker #1: Thank you. Thank you, part of me. We have some further questions on the phone line. Your next question comes from Tim McArthur with Asymmetric Asset Management.

Operator: Thanks. Thank you. Pardon me. We have some further questions on the phone line. Your next question comes from Tim McArthur with Asymmetric Asset Management. Please go ahead.

Speaker #1: Please go ahead.

Tim McArthur: Morning, Raimond.

Speaker #5: Morning, Raymond. I just had two questions. How are you going there?

Raimond Coneliano: Good day to you.

Tim McArthur: I just have two questions. How are you going there?

Speaker #2: Very good.

Raimond Coneliano: Very good.

Speaker #5: That's good. Just two questions from me, please. One just on New Zealand: the human health industry, which you called out as dropping in demand—what's happening there?

Tim McArthur: That is good. Just two questions from me, please. One just on New Zealand. The human health industry, which you called out as dropping in demand, what is happening there in particular?

Raimond Coneliano: Yeah, look, I guess we have got a few customers there with some very large pieces of business that they were not able to secure and therefore could not buy the materials from us this period. So yeah, it is a quite a chunky piece of business. Because our New Zealand business is relatively small, well, it is still developing, but small, it makes quite a big difference to results when you do not have that one. You have it one year and you do not have it the next year. But our client, they unfortunately lost it to an overseas competitor of theirs. Offshore. So yeah.

Speaker #2: Yeah, look, I guess we've got a few customers there with some very large pieces of business that they weren't able to secure, and therefore couldn't buy the materials from us this period.

Speaker #2: And so yeah, it's a quite a chunky piece of business. So because our New Zealand business is relatively small, well, still developing, but small, it makes quite a big difference to results when you don't have that one you have it one year and you don't have it the next year.

Speaker #2: But our client, unfortunately, lost it to an overseas competitor of theirs—offshore. So, yeah.

Speaker #5: Yep. Okay. And then just on North America, could you talk a little bit about what your medium-term goals are there? Obviously, you've already spoken on the call about the M&A that you're looking at, but more just perhaps your organic growth that you can see there, and if internally, if you've got an aim, for example, to get sales to $500 million over the next five years, or what's the medium-term aims there, please?

Tim McArthur: Yeah. Okay. Then just on North America, could you talk a little bit about what your medium-term goals are there? Obviously, you have already spoken on the call about the M&A that you are looking at, but more just perhaps the organic growth that you can see there, and if internally, if you have got an aim, for example, to get sales to AUD 500 million over the next five years or what is the medium-term aims there, please?

Speaker #2: Yeah, that's a good question, and it's one I think about myself a lot—and the team does too. We've got ideas of where it can go.

Raimond Coneliano: Yeah. It is a good question, and it is one I think about myself a lot, and the team do, and we have got ideas of where it can go, and I do not have the okay to share them here with you today. But I will talk a little bit about the success we had this period. I think one of the good things about volatility and dislocation and markets being in upheaval and tariffs and all the sort of things that make markets hard to look at the moment, is that it creates opportunities for disruptors like Redox, and we are disrupting that North American market. A lot of the opportunities we get is because, well, all of a sudden the product is gone short and people need someone to help out and we have been that person to jump in and help out in a lot of cases.

Speaker #2: And I don't have the okay to share them here with you today, but I will sort of talk a little bit about the success we had this period.

Speaker #2: I think one of the good things about volatility and dislocation—and markets being in upheaval, with tariffs and all those sorts of things that make markets hard to look at at the moment—is that it creates opportunities for disruptors like Redox.

Speaker #2: And we're disrupting that North American market. And a lot of the opportunities we get are because, well, all of a sudden, the product's gone short.

Speaker #2: And people need someone to help out. And we've been that person to jump in and help out in a lot of cases. And it's great because that allows us to prove ourselves to a whole batch of new customers.

Raimond Coneliano: And it is great because that allows us to prove ourselves to a whole batch of new customers. So we have got a lot of new customer wins from that dislocation and, yeah, we are going to hopefully keep those customers for a long time as we like to do. But like I said before, the market I think in Canada is some AUD 70 billion. In the US is hundreds of billions of dollars. Mexico again, is a very vibrant and expanding business there. So look, it is all good signs and I am very proud of those guys. My cousins over there in LA and my friends that I have made over the years in our business there are doing fantastic work, and now we have got this coast-to-coast presence that is really helping us springboard new sales, new opportunities, getting closer to clients and solving their problems. It is fantastic.

Speaker #2: So we've got a lot of new customer wins from that dislocation, and yeah, we're going to hopefully keep those customers for a long time, as we like to do.

Speaker #2: But like I said before, the market in Canada is, I think, around $70 billion. In the US, it's hundreds of billions of dollars.

Speaker #2: So, in Mexico, again, it's a very vibrant and expanding business. So look, it's all good signs, and I'm very proud of those guys. My cousins over there in L.A. and my friends that I've made over the years in our business there are doing fantastic work.

Speaker #2: And now we've got this coast-to-coast presence. It's really helping us bring more new sales and new opportunities, getting closer to clients and solving their problems.

Speaker #2: It's fantastic, and I think the sky's the limit, Tim.

Raimond Coneliano: And I think the sky's the limit, Tim.

Speaker #5: So, would you be surprised, Raymond, if you did a similar level of growth in FY27, or do you sort of see that as doable?

Tim McArthur: So would you be surprised, Raimond, if you did a similar level of growth in FY27, or do you sort of see that as doable, or was it a one-off?

Speaker #5: Or was it a one-off?

Speaker #2: I think if the moon's aligned, it could be similar this year. I mean, let's see. But some of those opportunities we got this year maybe won't be around next year, or we could have some—it's still a very early stage.

Raimond Coneliano: I think if the moon and the line, it could be similar this year. Let's see. But some of those opportunities we got this year maybe won't be around next year, or we could have some. It's still very early stage. Although it's big, it's still finding its feet. It's got a different profile to the more established locations like Australia, where you have small clients, medium clients and big clients. Our US business still has a lot of choppier, larger business, so it can kind of be thrown around a bit, and at the moment it's all pointing upwards, which is great. But let's not get too carried away. I think the signs are all there, but you can't predict when it's a new business and a developing business.

Speaker #2: Although it's big, it's still finding its feet. It's got a different profile to the more established locations, like Australia, where you have small clients, medium clients, and big clients.

Speaker #2: The US, our US business, still has a lot of choppier, larger business, so it can kind of be thrown around a bit. And at the moment, it’s all pointing upwards, which is great.

Speaker #2: But let's not get too carried away. I think the signs are all there, but you can't predict when it's a new business and a developing business.

Speaker #5: Yeah, all right. Thank you very much, Raymond.

Tim McArthur: Yeah. All right. Thank you very much, Raimond.

Speaker #2: Great.

Raimond Coneliano: Great.

Speaker #1: There are no further questions on the phone line at this time. I'll now hand back for closing remarks.

Operator: There are no further questions on the phone line at this time. I will now hand back for closing remarks.

[Company Representative] (Redox): There is one more question from Platform. Are you holding more stock than usual because of the disruptions in the Middle East? Any issues with tariffs currently?

Speaker #3: There is one more question from Platform. Are you holding more stock than usual because of the disruptions in the Middle East? Any issues with tariffs currently?

Speaker #2: Well, no. Stock, not really. Our stocks are within the normal parameters of our expectations. But sales are increasing, so obviously you need the stock to sell.

Raimond Coneliano: Well, no. Stock, not really. Our stocks are within the normal parameters of our expectations, but sales are increasing, so obviously you need the stock to sell. Regarding tariffs are a headache because you have to keep adjusting the rates in the system and making sure they are correct. But other than that, they do not pose a real impediment to Redox. They are felt by everyone, and everyone is in the same boat. I think I have said before, I would prefer they just work out what they are and stick to it and move on. That would be nice. But other than that, some part of that volatility helps us prove ourselves to new clients.

Speaker #2: And regarding tariffs, tariffs are a headache because you have to keep adjusting the rates and the system, and making sure they're correct. But other than that, they don't pose a real impediment to Redox.

Speaker #2: They are felt by everyone, and everyone is in the same boat. So, as I think I’ve said before, I prefer they just work out what they are, stick to it, and move on.

Speaker #2: That would be nice. But other than that, it doesn't really—actually, some part of that volatility helps us prove ourselves to new clients.

Speaker #3: Thank you. There are no further questions from Platform.

[Company Representative] (Redox): Thank you. There are no further questions from Platform.

Operator: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

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Q4 2026 Redox Ltd Earnings Call

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