By Rhiannon Hoyle

Dyno Nobel on Monday reported a return to profit for its first fiscal half and said it has made significant progress toward separating its fertilizers business, including striking a deal to sell the distribution arm.

The Australia-listed explosives company, formerly known as Incitec Pivot, said it made a net profit of 7.4 million Australian dollars (US$4.7 million) in the six months through March. That compared to a loss of A$148.3 million in the year-prior period, when a higher level of one-time charges weighed on its bottom line.

Directors declared an interim dividend of 2.4 Australian cents per share, representing a 51% payout of profit before material items, the company said.

Dyno Nobel reported material items totaling A$80.4 million after tax for its most recent half, which mostly related to costs associated with the closure of the Geelong manufacturing plant and a noncash impairment of the fertilizers manufacturing facility at St. Helens. Profit stripping out those charges totaled A$87.8 million, versus A$164.0 million a year ago.

Dyno Nobel said it has advanced plans to split its fertilizers business from its core explosives operations, which includes the deal to sell the fertilizers distribution business to Australian animal feed manufacturer Ridley Corp. for A$300 million, plus A$121 million in working capital release. Dyno Nobel will also get another A$75 million from the sale of land in Geelong to Ridley Corp.

It also agreed to sell the company's offtake agreement with Perdaman Chemicals and Fertilisers to Australia's Macquarie Group for up to A$145 million, and signed a conditional contract of sale for the Gibson Island land to an Australia-listed property developer for A$194 million.

The company continues to work on a strategic review of the Phosphate Hill operation and remains committed to making a decision no later than September, it said.

Chief Executive Mauro Neves said underlying earnings growth in the explosives business is strong.

"Despite weather challenges presenting themselves across our businesses during the half, our underlying results have been robust, and we expect a stronger second half with the majority of turnaround impacts behind us," he said.

Neves said he expects the impact from tariffs to be minor, based on current U.S. tariffs in place and with efforts to mitigate their impact. That could change if there are further U.S. policy changes, given Dyno Nobel Americas purchases raw materials from Europe, Asia and Africa.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

May 11, 2025 19:33 ET (23:33 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.