Range International Reports 63% Revenue Growth, Loss Halved to US$365K
Range International Limited reported a significantly reduced half-year loss alongside a 63% revenue increase, driven by strong pallet sales and resolution of Indonesian tax disputes. The company is now positioning for growth with factory relocations and new market entries.
- Half-year loss narrowed to US$364,895 from US$772,544
- Revenue surged 62.7% to US$931,376, led by pallet sales growth
- Successful resolution of Indonesian tax disputes removes capital raising constraints
- Unsecured debt facility secured to support working capital needs
- Plans underway for factory relocation and expansion into pallet rental and Philippines market
Financial Turnaround Amidst Challenges
Range International Limited (ASX, RAN), a manufacturer specialising in recycled plastic pallets using its proprietary ThermoFusion™ technology, has reported a marked improvement in its half-year financial results for the period ending 30 June 2025. The company posted a loss after tax of US$364,895, significantly narrower than the US$772,544 loss recorded in the same period last year. This improvement accompanies a robust 62.7% increase in revenue to US$931,376, reflecting strong sales momentum primarily in Indonesia.
Resolving Tax Disputes Unlocks Growth Potential
A pivotal development during the period was the successful appeal against Indonesian tax assessments dating back to 2018, involving withholding and value-added taxes. The unanimous dismissal of these claims by the Jakarta Tax Court has lifted a major overhang that previously constrained Range’s ability to raise capital. The resolution not only restores stakeholder confidence but also clears the path for fresh investment and strategic partnerships.
Operational Advances and Strategic Moves
Range’s operational focus remains on expanding its pallet sales and entering the pallet rental market, where demand is growing. The company has commissioned a new mold tailored for the closed-loop warehouse rental segment, signaling a strategic pivot to diversify revenue streams. Additionally, plans are underway to relocate the Indonesian manufacturing facility to a more flexible site outside the bonded zone, with a phased move of equipment expected to complete by year-end. Further expansion is anticipated with the establishment of a manufacturing presence in the Philippines by mid-2026, contingent on joint venture opportunities.
Financial Position and Funding Outlook
Despite the improved results, Range continues to face working capital challenges, reporting a net working capital deficiency of US$270,866 at period end. To mitigate short-term funding pressures, the Board and senior executives have extended an unsecured debt facility of A$575,000 (approximately US$376,625), with US$129,035 drawn as of 30 June 2025. The company acknowledges that additional funding may be required to fully execute its growth plans, particularly for expanding the pallet rental fleet and new manufacturing initiatives.
Regulatory Tailwinds and Market Opportunity
Range is well positioned to benefit from emerging Extended Producer Responsibility (EPR) regulations in Indonesia and the Philippines, which mandate producers to manage plastic waste from packaging. This regulatory environment is expected to accelerate demand for recycled plastic pallets as cost-effective, durable alternatives to timber. Range’s existing relationships with multinational FMCG companies provide a solid foundation to capitalize on these trends.
Governance and Outlook
The company’s governance team has been strengthened with the appointment of a new CEO, Russell Kennett, in January 2025, and key financial and company secretarial roles filled by experienced professionals. The auditors issued an unqualified review report but highlighted material uncertainty regarding the company’s ability to continue as a going concern, reflecting ongoing losses and cash flow deficits. Nevertheless, the Board remains optimistic about the company’s trajectory, underpinned by operational improvements, regulatory support, and strategic growth initiatives.
Bottom Line?
Range International’s improved half-year performance and resolved tax issues set the stage for growth, but funding and execution risks remain.
Questions in the middle?
- Will Range secure the additional funding needed to expand its pallet rental fleet and new manufacturing sites?
- How will the Indonesian Supreme Court respond to the tax dispute appeals, if at all?
- Can Range sustain its revenue growth and improve margins amid supply chain and working capital challenges?