Eneco Refresh lifts third-quarter revenue as it braces for cost pressures

Eneco Refresh Limited ( (AU:ERG) ) just unveiled an announcement.

Eneco Refresh reported a 7% rise in total third-quarter and year-to-date revenue to $4.51 million and $13.51 million respectively, driven by solid growth in its Refresh Waters and Refresh Plastics divisions despite mixed regional performances. The water business posted 5% quarterly and 6% year-to-date revenue growth, aided by rising sales to major retailers and cost-cutting that delivered profitability across all branches, while an accounting change shifted some custom-label revenue from New South Wales to Victoria without affecting overall performance.

Refresh Plastics delivered an 11% year-to-date revenue increase after strong February and March trading, supported by product redesigns and ongoing bespoke offerings that opened new commercial opportunities. Management flagged emerging cost pressures from the Middle East conflict through higher fuel, raw materials and supply chain expenses from April, and signalled a willingness to exit unprofitable supply contracts as part of a disciplined focus on maintaining margins and implementing a board-backed action plan to navigate the challenging environment.

More about Eneco Refresh Limited

Eneco Refresh Limited operates in the bottled water and plastics packaging industry in Australia, with key cash-generating units across Western Australia, New South Wales, Victoria, Northern Territory and Queensland. Its core businesses, Refresh Waters and Refresh Plastics, supply packaged water products to major retailers and bulk customers and manufacture customised plastic items, including bespoke solutions for new and existing clients.

Average Trading Volume: 157,628

Technical Sentiment Signal: Sell

Current Market Cap: A$3.54M

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