How Did Eneco Refresh Achieve 4% Revenue Growth Despite Rising Costs?
Eneco Refresh Limited reported a 4% increase in total revenue for Q2 FY26, driven by gains in its Refresh Waters and Plastics segments despite some regional setbacks. The company also maintained positive operating cash flow while managing rising supply chain costs.
- 4% revenue growth in Q2 FY26 compared to prior year
- Strong performance in Refresh Waters with 8% sales increase
- Refresh Plastics shows 8% year-to-date growth despite Q2 dip
- Operating cash flow positive at $674,000 for the quarter
- Rising freight costs partially offset by cost-saving initiatives
Quarterly Revenue Growth
Eneco Refresh Limited has reported a 4% increase in total revenue for the second quarter ending December 2025, reaching $4.82 million compared to $4.63 million in the same period last year. This growth was primarily driven by the company’s Refresh Waters and Refresh Plastics divisions, which continue to build on momentum from the previous financial year.
Segment Performance Highlights
The Refresh Waters segment recorded an 8% increase in sales during the quarter, marking a record revenue month in December. Year-to-date sales for this segment are $437,000 higher than the previous year, reflecting strong demand and effective sales strategies. Meanwhile, Refresh Plastics experienced an 8% increase in year-to-date revenue, although the quarter itself saw a 14% decline compared to Q2 FY25 due to a one-off promotional sale last year that was not repeated.
Cost Management and Operational Efficiency
Despite the positive revenue trends, Eneco Refresh faces challenges from increased costs, particularly in freight across local, interstate, and international supply chains. The company has implemented several cost-saving initiatives that have helped reduce the cost of goods and services, partially offsetting these pressures. Staff costs rose notably in the quarter, while advertising and marketing expenses also increased as the company seeks to expand its market presence.
Cash Flow and Financial Position
Operating cash flow remained positive, with net cash from operating activities at $674,000 for the quarter and cash reserves standing at $4.42 million. Eneco Refresh reported no new borrowings or equity issues during the period, maintaining a clean balance sheet with no drawn loan facilities. This strong cash position provides a buffer to support ongoing growth initiatives and absorb cost pressures.
Looking Ahead
The company is actively pursuing opportunities to expand its product range, particularly within the Refresh Plastics segment, and is focused on improving operational efficiencies across its business units. While rising freight costs remain a concern, Eneco Refresh’s proactive approach to cost management and sales growth positions it well to navigate the evolving market landscape.
Bottom Line?
Eneco Refresh’s steady revenue growth and positive cash flow underscore resilience, but rising supply chain costs warrant close monitoring.
Questions in the middle?
- How will Eneco Refresh mitigate ongoing freight cost increases in the coming quarters?
- What new products or market expansions are planned for Refresh Plastics to sustain growth?
- Can the company maintain positive operating cash flow amid rising staff and marketing expenses?
