Eneco Refresh’s Profit Turnaround: Can It Last Amid Rising Costs?
Eneco Refresh Limited has reported a significant turnaround with a 6.5% increase in revenue to A$9 million and a return to profitability in the half-year ended 31 December 2025. The company’s focus on cost savings and operational improvements underpinned growth across its bottled water and plastics segments.
- 6.5% revenue increase to A$9 million in H1 FY26
- Profit of A$237,111 after prior period loss
- Strong growth in bottled water and plastics divisions
- Significant cost savings and operational efficiencies achieved
- No interim dividend declared, focus on sustainable profits
Financial Turnaround Amid Challenging Conditions
Eneco Refresh Limited has delivered a notable financial turnaround in the first half of fiscal 2026, posting a 6.5% rise in revenue to A$9 million and returning to profit with a net gain of A$237,111. This marks a sharp contrast to the prior corresponding period, which saw the company record a loss. The results reflect the company’s successful efforts to stabilise operations and improve margins despite a tough economic environment.
Segment Performance Drives Growth
The company’s two core divisions; bottled water and plastics manufacturing; both contributed to the improved performance. The bottled water segment, operating six factories across Australia and supplying spring water from a Northern Territory licensed property, saw a 6% revenue increase, buoyed by strong summer demand and record sales in December. Meanwhile, the plastics division achieved an 8% sales uplift, overcoming previous operational challenges including a fire in 2024, and is now delivering consistent profitability.
Operational Efficiencies and Cost Management
Management highlighted significant savings in the cost of goods and services as a key driver of the improved bottom line. Despite some headwinds from the relocation of the Victoria branch and ongoing high input costs, the company has implemented product standardisation and capacity upgrades to support growth. These initiatives have helped reduce losses in underperforming areas, such as the Victorian operations, by approximately 80% year-on-year.
Balance Sheet and Cash Flow Stability
At 31 December 2025, Eneco Refresh reported net assets of A$8.66 million and maintained a healthy cash balance of A$4.42 million. The company’s working capital surplus of over A$5 million underpins its ability to meet obligations and invest in future growth. Lease liabilities increased due to a new Sydney branch lease, but overall financial position remains solid.
Outlook and Strategic Focus
The board remains committed to returning the group to sustainable profitability and is actively exploring opportunities for expansion through potential acquisitions. Continued investment in production capacity and efficiency improvements is planned to support ongoing growth. However, no interim dividend will be paid as the company prioritises reinvestment and financial stability.
Bottom Line?
Eneco Refresh’s return to profit and revenue growth signals a promising recovery, but sustaining momentum amid cost pressures will be critical.
Questions in the middle?
- Can Eneco Refresh sustain profitability and margin improvements in the second half of FY26?
- What potential acquisitions is the company considering to accelerate growth?
- How will ongoing cost pressures and economic conditions impact future performance?
