Thank you. Good morning, and welcome to Redox Limited's FY26 Full Year Results Briefing.

I'm Raimond Coneliano, Redox's CEO and Managing Director, and I'm 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. 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.

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 percentage points to 22.4%, again demonstrating the resilience and breadth of our operating model.

EBITDA FX increased 9.9% to $134 million, and our conversion margin remained highly competitive at 44.8%. Statutory NPAT increased 19.2% to $92 million.

Pro forma basic earnings per share increased 19.2% to 17.5 cents, while after-tax ROC increased by 1.1 percentage points to 14.6%. 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%, within our target range of 60% to 80%.

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 Molecules. 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. 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 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 $1.120 billion, supported by growth across several of our largest industry segments and a healthy contribution from Molecules, which continues to build sales, transformer oils to the energy generation and transmission sectors. 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. 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 the 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.

The North American market is highly fragmented and truly enormous. 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.

Turning to slide 8.

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 $1.33 billion, with organic growth, particularly in North America, supplemented by contribution from Molecules.

Gross profit increased 11% to $298 million, while underlying EBITDA FX increased 9.9% to $134 million. The underlying EBITDA FX margin increased by 0.3 percentage points to 10.1%.

Underlying NPAT FX increased 8.8% to $87 million. Pro forma basic earnings per share increased 19.2% to 17.5 cents, reflecting the higher statutory profit and the company capital structure.

ROC 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. Moving to slide 10.

Slide 10 provides further details on the revenue and gross profit by geography. Australian sales, while represented more than 84% of the total revenue, increased 6.1%.

New Zealand sales declined 4%, with a softer demand in human health segments 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 points 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 $19 million to $176 million in FY26, reflecting both higher activity levels and increased investment in our capabilities.

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 headcounts, wage growth, and incentive payment.

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 $5 million, 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. Despite these investments, our margin conversion remains highly competitive at 44.8%.

Moving to slide 12. Cash flow from operation increased by $40 million to $88 million.

Cash before financing was $84 million, compared with $59 million in FY25. Free cash flow conversion rate improved by 21.8 percentage points to 62.5%, returning to our long-term range of 60% to 80%.

This demonstrates that the improvement in earnings translated into strong cash generations, while the business continued to grow. Turning to slide 13.

Net working capital was at $417 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.

Cash and cash equivalent including short-term deposit were $123 million, and the group remained in a zero net debt positions. This provides substantial 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 6.5 cents per share, in line with the FY25 final dividend.

This brings total dividends of FY26 to 13 cents 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 26th of August 2026, and the final dividend will be paid on the 22nd of September 2026.

I will now pass back to Raimond to cover our strategies and outlook.

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.

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 positions us well for the future.

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. 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.

Good morning, Raimond and Kim. Thank you for this presentation.

Can you hear me?

Yep.

Glad to hear from you, Vignesh.

Nice thing. First question, it clearly looks like the backdrop of sort of supply chain stress is in a real tailwind for the business, particularly over the 2H.

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, and particularly 180 basis points in the 2H versus the 1H.

As I understand it, a lot of the benefits from the market disruption sort of should flow into 1H27. Just wanted to get some color on what style of gross margins investors can sort of expect into 1H27 and maybe beyond as well.

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 increases the value of the service and the products that Redox provides, because we're, in a way, helping our customers deal with that volatility. I think they recognize that, and there's more value in those times.

Naturally, we're rewarded for our ability to help them through those sort of problems. You're right, in the second half there was some tailwinds from that.

You have to also recognize that we'd like to have got more product out of the Middle East, obviously, or other partners who weren't able to supply. It's not all upside.

There is some downside there. We're 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, what's our outlook? We think there's more inflation to come, higher prices.

Those higher replacement costs, which started somewhere in February, March, they'll start being reflected into our selling prices coming into FY27. Obviously, we'll do our best to help clients through, but we can't shield them from every price increase.

That's 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're exploring in the US market at the moment? Is the size of sort of the targets kind of still in that $50 to $100 million US range, I think you've mentioned in the past?

Maybe some color on indicative timing would be pretty helpful. Thank you.

Yep. What do they say about watching a pot and it never boils?

Look, we are very hard at work. Our teams have been hard at work through the year 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. 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. We don't make any apologies for that.

Look, we would have hoped to have had one done by the end of the FY26 financial year. I'm still confident we'll get one done this financial year, but let's see.

You can't predict, and you can't rush or prejudge these things. We're very happy with the pipeline.

Opportunities are in the, let's say, $30, $40 million revenue, US million revenue, up to over $100 million US revenue. 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 around that 10% of our current revenue, we'd be pretty comfortable with.

Amazing. That's very helpful.

Thank you, Raimond. That's all for me.

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. You mentioned increased half-on-half, but how meaningful was that?

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.

In your kind of commentary, it sounded much more subdued for you guys. Just kind of interesting in getting more color there.

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.

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. The effect is somewhat more lagged for an Australian-New Zealand predominant business.

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.

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 started to be felt towards the end of Q4. That's why I'm saying that it's certainly more of an FY27 story, I imagine, than an FY26 story.

I think that's good because for Redox, we pass those costs along, and we've been able to do that quite effortlessly and we'll continue to do so. It's that sort of business.

Got it. No, that's super helpful.

Maybe just on that, and yeah, I guess you have kind of mentioned that, look, there's more of that price inflation to come. I'm sorry, Raimond, 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.

Is there a ballpark figure that we should be thinking about, at least kind of for the next 6 months just so we don't get carried away?

Yes, I'd like you not to be carried away, and Did you hear Um, look, I I think maybe let's just think about what's happened in the past, the 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 10-15%, and deflated, some portion of that afterwards.

In COVID, that inflation was more like 15-20%. Very strong event then.

We think it's somewhere somewhere, more towards the GFC side of that ledger, but we're not sure yet. It'll take time and let's see.

Could could be in that range. We're not making any firm predictions.

It's too early to do that. Let's see how things unfold.

It It all depends on, we at the moment we have two sort of broad baskets of products: products which are very directly inflating because of the the direct effects of the Middle East conflict, we can think about petrochemicals in that in that bucket, plastics in that bucket, urea, some fertilizers, those things directly made in the Middle East or or very reliant on oil for their actual make-up; and then you can think about another basket which just is collateral damage in in 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. In those two buckets, some things are meeting very high demand and some may are meeting very low demand.

It it's it's just to say that it it's a it's not an easy number to pull out, but it it's certainly there, it's certainly a real thing, and I I appreciate everyone wants to know exactly how much. I'd love to have that crystal ball, too.

I think, looking at the past, you can see, 10-15% wouldn't be outrageous, but it really depends how long things go on, and it also depends on the demand side. Higher prices will, act to sub-, push down demand for for some customers in some industries in, and it's quite hard to always predict that.

Till now, customers have pretty, the economy is doing okay, it's not doing great, but it's, it's going along, so.

Got it. No, that's super helpful.

Maybe given that you kind of touched on that demand side, and maybe you've already answered this question, my apologies, but I was just hoping to get some color on ordering patterns over the half. 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.

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 those ordering patterns look now?

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

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. They sort of flew up a bit and have come back down a little bit now, but they're still healthy, still representing 4.5 odd months of forward sales, very comfortable where they are right now.

Got it. Then sorry, just one last one for me.

Can you guys help us understand the FX impact in the second half on Redox? It sounds like there's going to be some sales headwind given the translation, but thinking of your presentation or prepared remarks, you also called out some COGS benefit.

Just wanted to understand that better given the strength of the Aussie.

It it really depends whether it's a US dollar strength on its own against a basket of currencies, or it's an Aussie dollar strength story, you know? If if if, for instance, it's a story of the Aussie dollar outperforming all currencies, then you'll see prices for our goods fall quite a lot.

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. I I think that's pretty clear.

You can't control the FX effect, so, we don't spend a lot of time worrying about them. I know you you have a model there you're trying to so furiously put together.

The the the effect on that's called out on on one of the slides there is really you have to kind of deep dive into it. It's the effect of when we sell US dollar amounts in in Australia, sell goods in the in US dollars in Australia, the difference between the the point at which we make those sales and receive payment for those sales, 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.

It's really not much of an important effect really in the scheme of things, but it has to go on that slide. Complain to your local accounting standards bureau, I guess.

Awesome. Thanks, guys.

Mmm.

Yes, hi Raimond and Kim, thanks for taking my question. When we spoke last 6 months ago, I guess there was a bit of concern about some deflation in the Chinese prices of a basket of chemicals.

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?

Thanks for the question. I guess for really the last 2.5 years, financial years, prices have been flat.

They've not deflated, they've just been flat for that whole time. So 2.5 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, but as it turns out, really, it was a supply shock in the Middle East because of the conflict.

That's the story till now. I think everyone's very keen to understand the future, and I understand why, but some products are meeting a subdued demand environment, and some are very short and hard to get a hold of.

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.

There are some swings and roundabouts, and that changes week-to-week depending on policy. Prices going forward we don't 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.

Okay. Just a follow-up to 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, with that 10-15% pricing that you sort of indicated.

What do you anticipate the volume response to be to higher prices, or is it relatively inelastic demand, it won't have a massive impact?

It's really hard to tell, and all I can say is our order book is strong, and so that doesn't signal any material change in demand. Of course, we're talking about demand as if we've got the whole market, but actually, our market's huge, right?

Addressable market in the US is hundreds of billions of dollars. In Australia, it's $40 billion or thereabouts.

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. 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, and most of our business is taking market share off competition.

It's only so useful to us.

Thanks, Raimond.

Thank you. There's one question from webcast.

"Raimond, are you still looking at acquisitions around the world, or only in the USA?"

Yeah. Good question.

We have a medium-term focus on North America that I think what I've shared pretty carefully with you today. We do have opportunities elsewhere in the world.

I'd say it's not the right time for further expansion in Europe or Asia or South America, but we have a Malaysian business. We sell into Singapore.

I think we have ambitions to also start exploring Asia, but for right now, North America is our focus, and we don't want to be pulled in too many directions. We think we've got a really great offering, and you can see from our results, we're doing really well in North America, in Canada, in Mexico, in the US, and it's such a happy hunting ground for us, we're going to keep doing that.

Of course, always open to opportunities here in Australia, and we're talking to a lot of folks here in Australia about possibly them jointing their business with ours, and we think there's some good opportunities there. Let's see.

North America is our primary focus for now.

Thank you. A further question: "What was the level of organic growth in Australia in FY26?"

I don't have the number in front of me, but we had no acquisitions in FY26, but we did have a full 12 months of Molecules, whereas the year before we only had what, how many months?

10 months in FY25. 2 months in FY25, with 10 months of contribution in FY26.

Yeah.

I don't have the number to hand, so. Look, clearly it was mostly organic growth.

Molecules as a business had revenues of

$30 million.

$30 million Aussie on acquisition, and they're doing well while under Redox's ownership, so. Yeah.

Thank you. One further question: "How is volume growth tracking to start FY27?"

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, and you can hear there from the comments I've made today, there's a lot of things working in our favor as a business, and we've got a great platform, and we're growing really strongly, and our US business is doing really well, and yeah, we've got a lot going for us, and steady as she goes.

A further question which sort of dovetails 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 quarter in the last quarter of FY26 or start of FY27 so far?" I think you answered the FY27.

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 deflecting in Q4, 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, and we've got price inflation now which is going to provide some tailwinds coming into the new year.

We expect, as we always have, to grow around that sort of 7% or 8% in volume, 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.

There are no further webcast questions.

Great.

morning, Raimond. I just have two questions.

How you going there?

Very good.

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?

Look, I guess we've got a few customers there with some very large piece of business that they weren't able to secure and therefore couldn't buy the materials from us this period. It's quite a chunky piece of business, so.

Because our New Zealand business is relatively small, well, it's still developing, but small, it makes quite a big difference to results when you don't have that one. You have it 1 year and you don't have it the next year, so.

Our client, they unfortunately lost it to an overseas competitor of theirs offshore,

yeah. Okay.

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 the organic growth that you can see there, and if internally you've got an aim, for example, to get sales to $500 million over the next 5 years or what's the medium-term aims there, please?

Yeah. It's a good question.

It's one I think about myself a lot, and the team do, and we've got ideas of where it can go, 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've had this period. I think one of the good things about volatility and dislocation and markets being in upheaval and tariffs and all those sort of things that make markets hard to look at at the moment is that it creates opportunities for disruptors like Redox, and we're disrupting that North American market.

A lot of the opportunities we get is because, well, all of a sudden, a product's gone short 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. 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.

Like I said before, the market in Canada is some $70 billion. In the US, it's hundreds of billions of dollars.

Mexico again is a very vibrant and expanding business there. Look, it's all good signs, and I'm very proud of those guys, my cousins over there in LA, and my friends that we've made over the years in our business there are doing fantastic work, and now we've got this coast-to-coast presence that's really helping us springboard new sales, new opportunities, getting closer to clients, and solving their problems.

It's fantastic. I think sky's the limit, Tim.

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?

I think if,

I think if the the moons align, it could be it could be similar this year. Let's let's see.

Some of those opportunities we got this year maybe won't be around next year, or, we we could have some, it's still very early stage. Although it's big, it's still, finding its feet.

It's It's got a different profile to the more established locations like Australia, where you have small clients, medium clients, and big clients. The US, our US business still has a lot of choppier, larger business, it can kind of be thrown around a bit.

At the moment, it's all all pointing upwards, which is great. Let's not let, get too carried away.

I think the signs are all there, but, you can't predict when it's an a new business and and a developing business.

Yeah. All right, thank you very much, Raimond.

Right.

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?"

No. Stock not really.

Our stocks are within the normal parameters of expectations, but sales are increasing, obviously you need the stock to sell. Regarding tariffs, tariffs are a headache because you have to keep adjusting the rates in the system and making sure they're correct.

Other than that, they don't pose a real impediment to Redox. They are felt by everyone, and everyone is in the same boat.

I think I've said before, I prefer they just work out what they are and stick to it, and move on. That would be nice.

Other than that, some part of that volatility helps us prove ourselves to new clients.

Thank you. There are no further questions from the platform.