Range International Boosts Q1 Revenue 51% Amid Supply Challenges and Growth Plans

Solid Revenue Growth Despite Operational Headwinds

Range International Limited (ASX: RAN), the manufacturer of Re>Pal™ zero-waste plastic pallets, has posted a robust 51% increase in revenue for the March 2025 quarter, reaching US$465,000. This marks a continuation of the company’s positive sales momentum following a strong 2024, even as the business faced supply chain disruptions and equipment failures that constrained production and delivery schedules.

During the quarter, Range delivered 32,635 pallets in Indonesia, a 16% decrease from the previous quarter but still above the quarterly average for 2024. The company maintained a healthy gross margin of 32%, consistent with Q4 2024, and improved its EBITDA margin to 6%, up 2% from the prior quarter. These metrics underscore operational efficiencies achieved through ongoing process improvements and strategic outsourcing of alternative feedstocks.

Cash Flow and Supply Chain Challenges

Range’s cash burn increased to US$246,000 in Q1 2025, compared to US$136,000 in the same period last year. The rise was primarily driven by investments in equipment and inventory build-up, alongside a decrease in accounts payable. Cash on hand stood at US$76,000 at quarter-end, supplemented by an unused unsecured loan facility of US$362,000 provided by directors and senior management.

The company attributed approximately US$250,000 in lost revenue to delays caused by supply interruptions of polyal feedstock and equipment failures. These disruptions also reduced free cash inflow by about US$90,000. Range expects production to normalize in Q2 2025 as new equipment installations and supplier processes stabilize.

Strategic Growth Initiatives in Indonesia and the Philippines

Looking ahead, Range International is actively pursuing growth opportunities to scale its operations. Key among these is the expansion into pallet rentals within Indonesia, leveraging the durability and medium-heavy duty suitability of Re>Pal pallets to meet increasing customer demand for rental fleets. The company also plans to establish production capacity in the Philippines, relocating part of its manufacturing from East Java to Manila to capitalize on favorable local production costs and supportive recycling legislation.

Market research indicates a substantial rental market in both Indonesia and the Philippines, with timber pallet prices higher in the Philippines, creating a compelling value proposition for plastic pallet adoption. Establishing operations in Manila will require capital expenditure for plant setup, training, and quality control, with the company considering potential capital raising to fund these initiatives.

Ongoing Legal and Regulatory Matters

Range continues to manage unresolved Indonesian tax matters dating back to 2018, with hearings concluded in Q1 2025 and judgments expected by 2026. To date, these legal proceedings have not materially impacted the company’s operations or financial position. The Board remains focused on navigating these issues while advancing the company’s strategic objectives.

With a restructured Indonesian operation and stable gross margins, Range International is positioned to capitalize on identified growth opportunities. The company’s management expresses confidence in improving profitability and cash flow in the coming quarters, supported by contracted sales and operational efficiencies.