Eneco Refresh Limited (ASX:ERG) released its Preliminary Final Report for the financial year ended 30 June 2026, reporting changes in revenue, profitability and operating performance across its Business segments. The report, released under ASX Appendix 4E requirements, highlighted Revenue growth during FY2026 and an increase in profit after tax compared with the previous reporting period. The company stated that operational actions implemented during the year were focused on improving efficiency and managing changing input and logistics costs.

According to the report, revenue from ordinary activities increased to $17.73 million in FY2026 from $16.60 million in FY2025, while comprehensive profit after tax attributable to members increased to $446,491 from $20,556.

Company Overview

Eneco Refresh Limited (ASX:ERG) operates in the production and distribution of bottled water products and plastic products. The company’s operations include the Refresh Waters business and Refresh Plastics segment, with activities conducted across multiple Australian regions.

The company’s bottled water operations are reported across Western Australia, New South Wales, Victoria, Northern Territory and Queensland, while Refresh Plastics operates as a separate business segment. The company’s products include bottled water solutions and plastic Manufacturing products supplied to customers across different industries.

During FY2026, bottled water remained the larger contributor to group revenue, generating $14.78 million, while plastic products contributed $2.95 million.

The company identifies operating segments based on internal reports reviewed by management and the Board. Segment reporting includes geographical locations for the bottled water business, while Refresh Plastics is presented separately to reflect its operating performance.

FY2026 Financial Update

Eneco Refresh Limited’s Preliminary Final Report for the year ended 30 June 2026 was released under ASX Appendix 4E requirements. The company reported revenue from ordinary activities of $17.73 million, representing a 6.8% increase compared with $16.60 million in FY2025.

Profit before income tax increased to $451,001 from $24,656 in the previous year, while profit after income tax was also $451,001. After accounting for Fair Value movements on financial assets, total comprehensive profit for FY2026 was $446,491 compared with $20,556 in FY2025.

Management stated that FY2026 focused on improving bottom-line contribution after stabilisation activities undertaken in FY2025. The company invested in additional capability during the year to improve efficiency and manage operating expenses.

The report noted that market conditions changed during the year due to higher raw material prices and increased logistics costs. The company stated that these conditions affected Demand and cost patterns, particularly during periods of market volatility.

Segment Performance Across Operations

The company reported different outcomes across its regional operations during FY2026.

Western Australia generated revenue of $5.54 million, compared with $5.24 million in FY2025, representing 6% growth. The segment profit increased to $501,610 from $304,097, supported by operational performance and customer demand.

New South Wales revenue declined to $3.13 million from $3.26 million. The company stated that reporting changes relating to the allocation of custom label water revenue affected year-on-year comparisons for NSW.

Victoria recorded improved performance during FY2026. Revenue increased to $2.60 million from $2.19 million, while the segment reduced losses compared with the previous year. The company reported that Victoria returned to overall profitability following operational improvements.

Queensland revenue increased by 4% to $3.46 million. However, profitability was affected by Margin pressure from a customer, tax-related adjustments and asset adjustments relating to water coolers.

The Northern Territory business experienced lower demand following customer operational changes. The company stated that demand declined during the second half of FY2026, although the impact remained limited due to the segment’s small contribution to overall revenue.

Refresh Plastics Performance

Refresh Plastics recorded revenue growth during FY2026, with revenue increasing 19% compared with FY2025. The company reported that the segment experienced challenges from changes in raw material pricing, including higher manufacturing input costs during the year.

Despite these conditions, the company reported an improvement in segment profitability, with profit increasing by 59% compared with FY2025.

The company continues to evaluate opportunities within the plastics business, including potential new products, customers and Acquisition opportunities.

Financial Position and Cash Flow

Eneco Refresh Limited reported total Assets of $14.49 million at 30 June 2026 compared with $14.02 million at 30 June 2025. Net assets increased to $8.87 million from $8.43 million during the same period.

Cash and cash equivalents increased to $5.02 million at the end of FY2026 compared with $4.51 million at the end of FY2025.

Operating Cash Flow also improved during the year. Net cash flows provided by Operating Activities increased to $1.71 million from $1.39 million in FY2025. The company ended FY2026 with a net increase in cash and cash equivalents of $516,553.

Industry Context

The bottled water and packaging industries operate in an environment influenced by consumer demand, production costs, logistics conditions and raw material availability.

For companies operating in these segments, managing manufacturing expenses while maintaining Supply capability remains an important operational factor. Eneco Refresh Limited’s FY2026 results reflected the impact of these industry conditions, particularly through changes in raw material prices and logistics expenses.

The company’s regional performance also demonstrated differences in customer demand and operating conditions across Australian markets. Changes in revenue allocation methods during FY2026 affected comparisons between certain regions, with future reporting expected to provide clearer year-on-year comparisons.

Risk and Uncertainties

Eneco Refresh Limited continues to face risks related to raw material costs, customer demand changes, logistics expenses and competitive conditions within the bottled water and plastics sectors.

The company noted that raw material prices increased during FY2026, affecting manufacturing costs within the Refresh Plastics business. Future operating performance may depend on the company’s ability to manage cost changes and maintain customer relationships.

Demand fluctuations across regional markets may also influence segment performance. The Northern Territory business experienced reduced demand due to customer operational changes, although the company stated that the impact was limited due to the segment’s size.

Future Outlook

Eneco Refresh Limited stated that management will continue implementing operational plans aimed at improving performance and exploring opportunities related to acquisitions and business synergies.

The company’s focus areas include improving operational efficiency, expanding capabilities and identifying opportunities across its operating segments.