Supply Network Faces ERP Transition Challenge While Targeting $50m Growth

Strong Growth in a Challenging Environment

Supply Network Limited has delivered another year of robust financial performance in FY2025, posting a 15% increase in revenue to $349 million. This growth, while solid, reflects a moderation compared to previous years, influenced by lower inflation and subdued GDP growth. Profit after tax rose to $39.7 million, with a slight improvement in profit margins to 11.4%, underscoring the company’s operational efficiency amid evolving market conditions.

Strategic Expansion Across Australia and New Zealand

The company continued to invest in its branch network, opening a new facility in Wangara, Western Australia, targeting the industrial precinct north of Perth. This addition is poised to tap into the region’s growth corridor. Meanwhile, an extension at the Truganina branch in Victoria has begun operations, easing capacity constraints at the longstanding Pemulwuy, NSW distribution centre. Looking beyond Australia, Supply Network has leased a new facility in Albany, New Zealand, set to commence trading in early 2026, aiming to enhance service coverage in the Auckland region.

Operational Excellence and Safety Milestones

Safety remains a cornerstone of Supply Network’s operational philosophy, with FY2025 marking a record low Lost Time Injury Frequency Rate. This achievement reflects sustained efforts through targeted risk management programs and a strong safety culture fostered by leadership. The company’s commitment to employee wellbeing is evident as it sets new safety priorities for the coming year.

Financial Discipline Supports Growth Ambitions

Maintaining a conservative capital structure, Supply Network continues to operate with low net debt, providing flexibility to fund ongoing investments in infrastructure, technology, and customer relationships. The dividend reinvestment plan remains capped, balancing shareholder returns with reinvestment opportunities. Over 70% of profit after tax is returned to shareholders as fully franked dividends, reflecting confidence in the company’s long-term growth trajectory.

Looking Ahead – Navigating Change and Opportunity

For FY2026, Supply Network targets an additional $50 million in revenue growth. This ambition comes with the challenge of transitioning to a new Enterprise Resource Planning system and sales interface, a complex upgrade that management believes is well planned to avoid service disruptions. The company has also bolstered its business development capabilities to capitalize on organic growth opportunities, signaling readiness to adapt its proven strategies to a larger scale and shifting market dynamics.