Range International Posts 75% Revenue Growth and Doubles Production Capacity
Range International Limited reported a robust Q2 2025 with revenue surging 75% year-over-year and strong operational momentum despite supply challenges. The company’s strategic moves in Indonesia and the Philippines, alongside a favorable tax court ruling, set the stage for an ambitious growth trajectory.
- Q2 2025 revenue rises 8% sequentially and 75% year-over-year to US$502k
- Gross margin at 21% despite higher feedstock costs; supply chain improvements expected
- 529 tonnes of pallets delivered, a 51% increase year-over-year
- New pallet molds introduced with confirmed orders, supporting rental strategy
- Jakarta Tax Court ruling eliminates prior tax liabilities, boosting financial stability
Strong Revenue Growth Amid Economic Uncertainty
Range International Limited (ASX, RAN), the manufacturer of Re>Pal™ zero-waste plastic pallets, has delivered a strong performance in the June quarter of 2025. The company reported revenue of US$502,000, marking an 8% increase from the previous quarter and a remarkable 75% jump compared to Q2 2024. This growth comes despite some customers requesting order delays early in the quarter due to economic concerns, which were subsequently reinstated in July, signaling renewed confidence in demand.
Operational Efficiency and Margin Challenges
While the company maintained a positive gross margin of 21% in Q2, this was below the targeted 30%, primarily due to a shortfall in preferred feedstock supply. To compensate, Range International sourced more expensive alternative materials, which increased costs. Encouragingly, supply chain disruptions are expected to ease in Q3 with the return of preferred feedstocks, potentially restoring margins closer to target levels.
Production and Product Innovation Drive Market Expansion
Re>Pal Indonesia delivered 529 tonnes of pallets (25,834 units) in Q2, a 51% increase year-over-year and a 9% rise over the 2024 quarterly average. The company introduced two new pallet molds designed for medium to heavy weight applications, including a model tailored for racking systems that aligns with its Indonesian rental strategy. Early customer orders for these new pallets underscore the market’s positive reception and the potential for rental fleet growth.
Strategic Moves and Regulatory Tailwinds
Range International secured a four-year lease on a smaller but more efficient factory in Pasuruan, East Java, with production capacity set to at least double. The company is also exploring establishing a distribution center in Jakarta to support increased demand. On the regulatory front, the Indonesian government’s push toward mandatory Extended Producer Responsibility (EPR) regulations aligns well with Range’s recycling-focused business model, potentially enhancing market opportunities.
Financial Stability and Growth Prospects
The Jakarta Tax Court ruled in favor of Range International, nullifying prior withholding and value-added tax assessments from 2018, a decision that removes significant financial uncertainty. Directors and senior management continue to support the company financially, having provided an unsecured liquidity facility, with US$106,000 drawn in Q2. Looking ahead, Range is assessing expansion into the Philippines and pallet rental opportunities, aiming to leverage legislative support for recycling and scale production efficiently.
Bottom Line?
With supply chain normalization and strategic expansions underway, Range International is poised for a record-breaking Q3 and sustained growth in FY25.
Questions in the middle?
- How quickly will preferred feedstock supplies stabilize to improve gross margins?
- What is the timeline and capital requirement for the planned expansion into the Philippines?
- How will the Indonesian government’s mandatory EPR regulations impact Range’s competitive position?
