Margin Pressures Weigh on Redox (ASX:RDX) FY25 Profit Despite 9.4% Revenue Rise

Sonal Goyal

25 August 2025 04:56 PM AEST

Margin Pressures Weigh on Redox (ASX:RDX) FY25 Profit Despite 9.4% Revenue Rise

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Highlights

Redox’s FY25 sales revenue rose 9.4% YoY to AUD 1,244 million, driven by higher volumes.

Underlying NPATFX fell 15.6% YoY to AUD 80 million in FY25, impacted by margin pressure from higher fertiliser sales.

A final dividend of AUD 0.065 per share was declared, with payment scheduled for 23 September 2025.

Redox Limited (ASX:RDX) is an international distributor of specialty and commodity chemicals, ingredients, and raw materials. In the year ended 30 June 2025 (FY25), the company reported a 9.4% YoY increase in sales revenue, reaching AUD 1,244 million. The growth was driven by higher volumes. During the reported period, the Crop Production & Protection and Surface Coatings segments recorded notable improvements.

Despite revenue growth, underlying NPATFX declined 15.6% YoY to AUD 80 million. The company attributed the decrease in profitability to margin pressures, as gross profit margin contracted by 180 basis points to 21.6%. The margin impact was primarily due to an increased share of lower-margin fertiliser sales.

Dividend Update

On 21 August 2025, Redox announced a final dividend of AUD 0.065 per share. The dividend’s ex-date is set for 26 August 2025, and payment will be made on 23 September 2025.

Outlook for FY26

In FY26, Redox aims to expand its market presence through capability enhancement, entry into new sectors, and an expanded product portfolio. The company intends to leverage its Redebiz platform and broad geographic reach to secure new customers and deepen engagement with existing clients.

Redox remains focused on organic growth complemented by disciplined cost management and selective mergers and acquisitions, with particular interest in opportunities across North America. With a balance sheet free of net debt, the company believes it is well positioned to pursue sustainable and profitable growth.

Constructive Economic Indicators

Supporting the outlook, data from the Australian Bureau of Statistics (ABS) released on 20 August 2025 showed that wages and salaries paid by employers reached AUD 103.9 billion in June 2025, reflecting a 5.9% YoY increase. For the full financial year 2024-25, total wages and salaries stood at AUD 1,219 billion, also up 5.9% from the prior year.

Industries such as Health Care & Social Assistance, Financial & Insurance Services, Public Administration & Safety, Construction, and Professional, Scientific & Technical Services were the largest contributors to wage growth. This underlines the resilience of both financial and industrial sectors.

Share performance of RDX

RDX shares fell by 2.64% to close at AUD 2.58 per share on 25 August 2025. In a year, RDX’s share price has declined 14.29% and is down 43.42% year-to-date. It has fallen 19.12% over six months and 35.01% over nine months, while showing a 10.73% gain in the past month and 13.16% over the past week.

Redox shares touched a 52-week high of AUD 4.64 on 2 January 2025 and a 52-week low of AUD 2.02 on 6 June 2025.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 25 August 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

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