Eneco Refresh Posts 7.4% Revenue Growth and $20.6K Profit in FY25
Eneco Refresh Limited has reversed its fortunes with a modest profit in FY25, driven by steady revenue growth and operational improvements across key regions and business units.
- 7.44% revenue increase to $16.6 million in FY25
- Turnaround from $1.59 million loss to $20,556 profit
- Profit improvements in Western Australia, Northern Territory, Queensland, and Plastics segment
- No dividends declared for FY25
- Investments in automation and cost reduction despite inflationary pressures
Steady Revenue Growth Amid Inflation
Eneco Refresh Limited has reported a 7.44% increase in revenue for the financial year ending June 30, 2025, reaching $16.6 million. This growth was achieved despite significant inflationary pressures affecting suppliers, rents, and labour costs. The company’s refreshed executive team, including a new Chairman and Chief Operating Officer appointed in FY24, played a pivotal role in stabilising the business and setting a foundation for growth.
Profit Turnaround Driven by Regional and Segment Improvements
After several challenging years, Eneco Refresh posted a small profit of $20,556, a remarkable turnaround from a loss of $1.59 million in the previous year. Key contributors to this improvement include the Western Australia bottled water business, which swung from a loss to a $304,000 profit, and the Northern Territory and Queensland operations, both delivering strong profit gains. The Refresh Plastics segment also reversed its losses, reporting a $134,000 profit, supported by a revised operational model.
Strategic Investments and Operational Efficiency
The company invested in plant and equipment to enhance operational efficiencies, with automation playing a central role in cost reduction strategies. These investments are expected to yield further benefits in FY26. Despite the positive momentum, Eneco Refresh did not declare a dividend for FY25, reflecting a cautious approach as it consolidates its financial position.
Outlook and Management Commitment
The board and management remain aligned and committed to continuing the improvement trajectory. With a focus on growth through organic expansion and potential acquisitions, Eneco Refresh is positioning itself to capitalize on market confidence demonstrated by steady sales growth across multiple states. The appointment of a State Manager in New South Wales during the year signals a targeted effort to boost performance in that region.
Financial Position and Governance
The company’s net tangible asset backing per share remained stable at $0.03, and no contingent liabilities or acquisitions were reported. The financial report is currently unaudited, with no significant events or changes after the balance sheet date. Eneco Refresh also divested its investment in Jas Refresh Pty Ltd, reflecting a strategic focus on core operations.
Bottom Line?
Eneco Refresh’s cautious yet clear progress sets the stage for potential growth, but investors will watch closely how inflation and operational investments impact future profitability.
Questions in the middle?
- Will Eneco Refresh sustain profit growth amid ongoing inflationary pressures?
- What impact will automation investments have on margins in FY26?
- Are there imminent acquisition plans to accelerate expansion?
