Supply Network Posts $40M Profit, 15.5% Revenue Growth in FY2025

Strong Financial Performance Amid Moderate Economic Conditions

Supply Network Limited has delivered a solid financial performance for the year ended 30 June 2025, with revenue climbing 15.5% to $349.9 million and profit after tax rising 21.2% to $40 million. This growth was achieved despite a backdrop of subdued inflation and GDP growth compared to previous years, reflecting the company’s resilience and operational strength.

The profit after tax margin improved slightly to 11.4%, underscoring effective cost management and operational efficiencies. Earnings per share rose to 92.95 cents, up from 78.61 cents in the prior year, signaling enhanced shareholder value.

Strategic Network Expansion and Infrastructure Investment

Operationally, Supply Network has been proactive in expanding its footprint and capacity. The company opened a new branch in Wangara, Western Australia, and a parts outlet in Karratha, targeting growth corridors and resource-rich regions. Additionally, a significant extension of the Truganina, Victoria distribution centre was completed to alleviate capacity constraints at the Pemulwuy, NSW facility, enabling support for an additional $100 million in revenue growth.

Further capacity enhancements are underway with agreements to expand branches in Brisbane, Toowoomba, Perth, and Sydney, as well as a new facility in Rosedale, Auckland, New Zealand, expected to commence trading in early 2026. These moves position Supply Network to better serve its diverse customer base, particularly truck fleets and repairers, and to capitalize on growing demand from larger customers and truck manufacturers.

Safety and Capital Management Remain Priorities

Safety performance continues to improve, with the company reporting a record low Lost Time Injury Frequency Rate (LTIFR) in FY2025. This achievement reflects ongoing targeted safety programs and a strong safety culture fostered by leadership and management teams.

On the financial front, the company maintains a conservative capital structure with low net debt, supporting flexibility for growth investments. The dividend reinvestment plan remains active, allowing shareholders to participate in the company’s expansion while receiving over 70% of profit after tax as fully franked dividends. The final dividend declared for FY2025 is 38.0 cents per share, payable on 2 October 2025, marking a notable increase from prior periods.

Looking Ahead – Growth and System Upgrades

Management has set an ambitious revenue growth target of approximately $50 million for FY2026. This will coincide with the challenging transition to a new Enterprise Resource Planning (ERP) system and sales interface, critical for supporting the company’s scale and operational efficiency. While the migration poses risks, thorough planning aims to minimize disruption and maintain high service standards.

With strengthened business development capabilities and a clear strategic focus, Supply Network is well positioned to continue its trajectory of growth and market share expansion in the competitive aftermarket parts distribution sector.