Why Did Papyrus Australia’s Losses Soar to $2.8M in FY2025?
Papyrus Australia Ltd reported a sharp increase in losses for FY2025, driven by impairment of its Egyptian investments, while securing new funding and advancing commercialization of its banana fibre technology.
- Net loss surged 435% to $2.8 million for FY2025
- Investment in Egyptian subsidiaries written down to nil due to impairment
- No dividends declared or paid during the year
- Raised $262,000 via share and option placement in August 2025
- Secured $250,000 matched funding for banana fibre tech commercialization
Financial Performance and Impairment
Papyrus Australia Ltd has reported a significant deterioration in its financial results for the year ended 30 June 2025, posting a net loss of $2.8 million, a 434.8% increase compared to the prior year’s loss of $644,060. The sharp rise in losses was primarily driven by the full impairment of its investments in Egyptian subsidiaries, including Papyrus Egypt and the Egyptian Banana Fibre Company (EBFC). The company wrote down these investments to nil, citing lack of control and poor operational returns as key factors.
Despite the losses, the company did not declare or pay any dividends for the year, reflecting a cautious approach to preserving capital amid ongoing challenges.
Capital Raising and Strategic Funding
In August 2025, Papyrus raised $262,000 through a placement of 26.2 million shares and 13.1 million unlisted options priced at $0.02 each. This capital injection aims to support the company’s ongoing operations and strategic initiatives. Additionally, Papyrus secured a $250,000 matched funding grant to accelerate the early-stage commercialization of its proprietary banana fibre processing technology. This grant will fund prototyping and research and development activities at the University of South Australia, a critical step toward scaling the technology from proof of concept to commercial viability.
Commercialization and New Partnerships
Beyond funding, Papyrus has entered a binding term sheet with TBS Mining Solutions Ltd, a wholly owned subsidiary of Aquirian Pty Ltd, to manufacture biodegradable products using Papyrus’s patented technology. The partnership focuses on the next iteration of the Keeper® Biodegradable Collar, a product designed for plantation conversion into waste paperboard. Manufacturing is set to commence in Adelaide, with commercial production expected by Q4 FY2026. The contract includes a three-year term with an option to extend, potentially generating annual revenues of approximately $4.2 million.
Legal Challenges and Outlook
On the legal front, Papyrus faces an application filed by Union Equities Ltd and Pacific Perfection Australia Pty Ltd seeking discovery related to its Egyptian investments. The company is currently reviewing the application and has sought legal advice. While no contingent liabilities have been disclosed, the outcome of this legal matter could have material implications for Papyrus’s operations and financial position.
Overall, Papyrus is navigating a complex period marked by financial setbacks, strategic pivots, and promising commercialization efforts. The company’s focus on biodegradable materials and advanced manufacturing positions it well within a growing sector, but execution risks and external challenges remain.
Bottom Line?
Papyrus’s next chapter hinges on successful commercialization and resolution of its Egyptian investment disputes.
Questions in the middle?
- How will the legal application impact Papyrus’s Egyptian investments and overall strategy?
- What is the timeline and expected financial impact of commercializing the banana fibre technology?
- Can Papyrus sustain operations and growth with current cash reserves and recent capital raise?
