Eneco Refresh Limited (ASX:ERG) operates the Refresh Waters bottled water and water cooler Business across several Australian states and the Refresh Plastics Manufacturing business. The company lodged its Appendix 4E preliminary final report for the year ended 30 June 2026, which shows Revenue of $17,730,760, up 6.8%, and a profit after tax of $451,001, compared with $24,656 in FY25.

FY26 headline results

Comprehensive profit attributable to members was $446,491, compared with $20,556. Gross Profit was $7,238,951, compared with $6,254,412. Operating results were $475,813, compared with $62,505. Basic and Diluted Earnings per Share were 0.166 cents. Net Tangible Asset backing was $0.032 per share, compared with $0.030, and no Dividend was declared. Cash was $5,023,961, compared with $4,507,408, total Assets were $14,490,306 and net assets were $8,874,901.

The company described its profit as the best in five years and said the business has delivered a five-year compound annual revenue growth rate of 6.13%. It said the stronger Balance Sheet provides capacity to seek potential Acquisition opportunities.

Segment performance

Refresh Waters revenue was $14,780,000, up 5%, with profit of $931,000, up 60%. Refresh Plastics revenue was $2,951,000, up 19%, with profit of $213,000, up 59%. Corporate expenses were $693,000. By state, Western Australia revenue rose 6% to $5.54 million with profit up 65%, helped by favourable weather and Demand from the Mining sector. New South Wales revenue fell 4%, which the company attributed to a change in allocating custom label water revenue to the state where product is produced, and its profit rose 65%. Victoria revenue rose 19%, with the company saying the state returned to overall profitability after being its main loss generator. Queensland revenue rose 4% but profit fell 28% because of Margin pressure from one significant customer, a one-off tax Credit write-off and asset adjustments for water coolers.

The Northern Territory business, which supplies water from a natural spring reserve on 7.7 hectares to a local bottling plant, saw demand fall by almost 50% in the second half because of customer downsizing, a trend expected to continue in FY27. The company said Darwin represents less than 0.3% of revenue.

Middle East conflict and cost pressure

The company said market conditions changed dramatically at the end of February 2026 because of the Middle East conflict. Raw material prices reached an all-time high and rising fuel costs led to substantial logistics cost increases. Sales were unpredictable for the first four months of the conflict. In Refresh Plastics, raw material costs rose by as much as 50% in March, and the company said there had been no relief by year end. It said management actions, including efficiency improvements and added capability made in FY26, limited the effect of the volatility.

Refresh Plastics and outlook

Refresh Plastics returned to consistent performance after several years of losses and a factory fire in FY24. The company expects some stabilisation of raw material costs in FY27, sees growth opportunities through new products, customers or acquisitions, and says directors and management are confident in the strategies implemented. It also pointed to infrastructure projects ahead of the 2032 Olympic Games as supporting growth in Queensland.

Risks and sector context

Profit remains small in absolute terms at $451,001, and the company's reported figures include a segment allocation change that affects year-on-year state comparisons until FY27. Victoria's segment table still shows a loss, and Queensland profit declined. The Northern Territory demand decline is expected to continue. Raw material and logistics costs remain elevated, and the company notes that plastics raw material costs had not eased by year end. The report states that it is seeking acquisition opportunities, which carry integration and funding risks, and no transaction has been announced.

For sector context, the company points to demand from the mining sector in Western Australia and infrastructure activity in Queensland.

What to watch next

Items to watch include any acquisition announcement, the effect of raw material and fuel costs in FY27, like-for-like state revenue comparisons once the allocation change is fully reflected, Northern Territory demand, and the progress of efficiency programs across Refresh Waters and Refresh Plastics.