SDI champing at the bit for projected profit jump

Dental materials manufacturer SDI (ASX:SDI) is tracking for a 40 per cent full-year profit jump on the back of the company's R&D investment and push into global markets.

The manufacturer and exporter of biochemical and dental materials reported that it was headed for a record close to the year, consolidating its 35 per cent increase in post-tax interim profits in February.

The forecast growth comes as SDI announced the appointment of its first country manager in Mexico, Dr Erika Reyes, to continue the company's practice of setting up its own management in emerging markets.

CEO Jeffery Cheetham said the record results illustrated growing markets across the company's sales and marketing network, which spans some 70 countries.

"The strong sales of the second half of this year reflect the overall growth of the market in dental materials worldwide and the increasing acceptance of SDI products in all the countries in which we are established," Cheetham said.

"In particular we have strong growth in North America as well as certain EU countries where the company has its own sales offices and distribution centres."

He said the introduction of SDI's Pola tooth whitening system had also been enthusiastically received, paving the way for further growth in sales of the product next year.

"Additionally, our customers are looking positively at the imminent release of new exciting and quality margin products which will be introduced to world markets next year," Cheetham said.

Chairman Russell Smith added that the forecast profit in the current financial year confirmed the value of SDI's investment in R&D and its recent export marketing efforts.

"In particular SDI has continued growing its international marketing network to ensure that all new and core products are immediately introduced into world markets," Smith said.

News of the expected profit leap had the market smiling, with the company's shares trading 6.7 per cent higher at the time of writing to $3.20, although volumes of the stock changing hands was minimal.