Highlights

  • Re>Pal Indonesia achieved a record quarterly gross Margin of 35% in Q2 FY26.
  • Indonesian operations delivered 32,873 pallets during the June quarter, up 27% on the prior corresponding period.
  • Rental pallets under contract increased to 11,444 units as Range expanded its rental strategy.
  • Range continued discussions on funding Options to support rental fleet growth.

Range International Limited (ASX:RAN) is a manufacturer of recycled plastic products focused on sustainable pallet solutions. The company uses its ThermoFusion™ technology to manufacture Re>Pal™ plastic pallets from 100% mixed waste plastic at its Indonesian production facility. During FY26, Range focused on improving Manufacturing efficiency, expanding its customer base, developing its pallet rental model and strengthening operational foundations to support future growth.

Re>Pal Indonesia Improves Manufacturing Performance

During the June quarter of FY26, Range reported continued improvement in manufacturing performance at its Indonesian operations. Gross margin, calculated as Gross Profit excluding Depreciation as a percentage of sales revenue, reached 35%, representing the highest quarterly gross margin reported by the business.

The improvement was supported by productivity gains at the new manufacturing facility, enhanced raw material purchasing processes and tighter quality control measures. The company noted that its new factory head implemented improved inspection procedures covering incoming raw materials, pallet strength and product appearance.

Range operates through PT RePal International Indonesia, where its ThermoFusion™ technology enables production of plastic pallets using mixed waste plastics. The company uses a range of recycled plastic materials, including polypropylene, polyethylene and other recycled polymer inputs, which are blended to produce pallet products suited for different load requirements.

During the quarter, elevated ethylene and propylene prices contributed to higher recycled plastic input costs. Range highlighted the importance of production efficiency and quality management in maintaining margins while managing raw material conditions.

The company delivered 32,873 pallets during Q2 FY26, representing a 27% increase compared with the prior corresponding period. For the six months ended 30 June 2026, Range delivered 71,322 pallets as manufacturing activity continued to expand.

Rental Pallet Strategy Progresses Through Customer Deployments

A key strategic focus for Range has been the development of its pallet rental Business model. Rental pallets provide an alternative operating model where customers access pallet solutions through ongoing arrangements rather than outright purchases.

During the June quarter, pallets covered by rental contracts increased to 11,444 units. Range stated that the rental pipeline continues to develop, while funding arrangements remain an important Factor in scaling the fleet.

The company received its second rental pallet mould in Indonesia during the quarter and commenced preparation of testing pallets for SMART, part of the Sinar Mas Group. Subject to successful testing outcomes, the opportunity could lead to additional rental order flow.

Range established a secured Loan Facility from professional and sophisticated investors during the period to support rental pallet manufacturing and related expenditure. The company also continued discussions with a large foreign bank regarding a potential funding proposal to support expansion of the rental fleet.

Management has identified two separate funding priorities: supporting existing operations until sustainable cash break-even is achieved and securing competitively priced funding to expand the rental pallet opportunity.

The rental strategy represents a shift towards recurring Revenue generation while extending the commercial life cycle of Range’s recycled pallet products.

Customer Diversification and Financial Position

Range continued broadening its Indonesian customer base during the first half of FY26. Excluding a previous major customer, Indonesian domestic sales increased from approximately IDR7.9 billion in H1 FY25 to IDR15.9 billion in H1 FY26, representing growth of approximately 101%.

For the half year ended 30 June 2026, Range recorded revenue of US$1.037 million compared with US$931,000 in the previous corresponding period. Gross profit increased to US$258,000, with gross margin improving to approximately 25% from 22%.

The company recorded a statutory loss after tax of US$683,000 during H1 FY26 compared with US$365,000 in H1 FY25. Range noted that the prior period benefited from higher other income, including non-recurring items.

Operating cash flow remained an area of focus, with net cash used in Operating Activities of US$388,895 during the half year. At 30 June 2026, Range held cash and cash equivalents of US$192,789.

The company continues implementing measures to improve factory utilisation, reduce expenditure, strengthen margins and manage Working Capital while pursuing additional funding opportunities.

Range’s strategy remains focused on expanding sustainable pallet manufacturing, growing the rental fleet and developing long-term customer relationships across Indonesia and the broader Asia Pacific region.

Key Insights

Range International is progressing its recycled plastic pallet business through manufacturing improvements, customer diversification and development of its rental pallet model. FY26 activities have focused on improving margins, expanding production capability and establishing funding pathways to support future fleet growth.