Range International Limited has reported its strongest quarterly sales and production figures yet in Indonesia, while strategically pivoting towards a pallet rental model to secure more stable revenue streams.
- Q4 2025 sales revenue in Indonesia reached US$737k, a 10% increase on Q3
- Annual production up 45% to 2,771 tonnes despite a 20-day factory shutdown
- New factory relocation enables direct pallet rentals alongside sales
- One-off costs impacted Q4 cash flow but tight cost control maintained
- Ongoing discussions for joint ventures and funding in Indonesia and Philippines
Record Sales and Production Growth
Range International Limited (ASX – RAN), the manufacturer behind the Re>Pal™ zero-waste plastic pallets, has delivered its best-ever quarterly sales performance in Indonesia, posting US$737,000 in revenue for Q4 2025. This marks a 10% increase over the previous quarter and a substantial 70% rise compared to the same period last year. Production volumes also surged, with 921 tonnes of pallets delivered in the quarter, culminating in a 45% annual increase to 2,771 tonnes despite a 20-day production halt in December due to factory relocation activities.
Strategic Factory Relocation and Operational Efficiency
The company completed the relocation of its East Java factory outside the export bonded zone, a move designed to facilitate the introduction of pallet rentals alongside traditional sales. The new facility, equipped with refurbished extrusion lines and a more efficient chilled water system, is tailored for increased operational efficiency and scalability. While the commissioning process extended production downtime, the factory is now running at normal levels, with production currently at about one-third of its capacity, leaving room for growth.
Transition to Rental Revenue Model
Range International is shifting its business model to include medium-term pallet rentals, starting with commitments from major customers such as Nestle and Sinarmas. This rental approach promises more predictable, annuity-like revenue streams and higher asset yields from repeat business. The company plans to capitalise production costs of the rental fleet and depreciate them over the pallets’ lifecycle, aiming to enhance shareholder value through this extended revenue tail.
Financial Position and Cost Management
Despite the positive sales momentum, Q4 saw a net cash outflow from operating activities of US$356,000, influenced by one-off expenses related to the factory move and equity placement. The company maintained tight cost controls and repaid a 14% per annum director loan facility following a successful share placement. Range ended the quarter with US$217,000 in cash and available financing facilities of US$383,000, providing approximately 1.7 quarters of funding at current burn rates.
Growth Prospects and Regional Expansion
Range International is actively exploring growth opportunities and potential joint ventures in Indonesia and the Philippines, with ongoing discussions that could unlock additional funding to accelerate rental fleet expansion. The company is also reviewing its currency reporting from USD to AUD to better align with its Australian listing and Asian operations. The sales pipeline for Q1 2026 remains strong, underpinning expectations for improved cash flows and continued operational progress.
Bottom Line?
Range International’s pivot to pallet rentals and factory upgrade set the stage for a new growth phase, but execution and funding remain key watchpoints.
Questions in the middle?
- How quickly will rental revenue streams contribute materially to overall earnings?
- What are the risks associated with the large outstanding receivable from one customer?
- Will joint venture discussions in Indonesia and the Philippines lead to concrete funding deals?