Range International Ltd Achieves Record Sales Revenue in Q3 2024
RANGE INTERNATIONAL LIMITED (RAN) Share Update October 2024 Thursday 31st
Range International Ltd Reports Record Sales Revenue in Q3 2024
Range International Ltd, the manufacturer of Re>Pal™ 'zero-waste' plastic pallets, has reported a remarkable increase in sales revenue for the third quarter of 2024, marking one of the company's best-ever revenue results.
Instant Summary:
- Q3 2024 revenue reached US$517k, an 80% increase from Q2 2024.
- 31,734 pallets delivered in Q3 2024, a 45% increase from Q2 2024.
- Gross margin of 25% and operating margin of -15% in Q3 2024.
- Group cash burn improved by 17% compared to Q2 2024.
Financial Performance
Range International Ltd has announced a significant boost in its financial performance for Q3 2024, with revenues reaching US$517k. This marks an 80% increase from the previous quarter and a 38% rise compared to the 2023 quarterly average. The company delivered 31,734 pallets, showcasing a 45% increase from Q2 2024 and a 25% increase from the previous year's quarterly average.
The company's gross margin stood at 25%, while the operating margin was -15%, resulting in an EBITDA loss of US$76k for the quarter. Despite the loss, Range International has managed to improve its cash burn by 17% compared to Q2 2024, although it remains double the 2023 quarterly average due to prepayments and increased inventory levels.
Operational Highlights
Re>Pal Indonesia, a subsidiary of Range International, has been pivotal in achieving these results. The company has extended its factory occupancy in Indonesia through 2025 to minimize production disruptions. The introduction of new pallets and equipment, alongside ongoing production process improvements, has contributed to the company's success.
Range International has also revamped its website to better communicate the environmental benefits of its products, highlighting the lower carbon footprint of its pallets compared to traditional materials. The company plans to install new equipment in Q4 2024 to further enhance production efficiency.
Future Prospects
Looking ahead, Range International is optimistic about its sales pipeline and the potential for growth. The company is in discussions for joint ventures that could expand its market reach. Additionally, Range International is working to resolve legal matters related to Indonesian tax assessments, with hearings expected to conclude by mid-2025.
The strong sales performance in Q3 2024 is likely to boost investor confidence in Range International's growth potential. However, the ongoing legal challenges and the company's suspension from the ASX could pose risks. The company's ability to secure joint ventures and resolve these issues will be crucial for its future prospects.
Investor Reaction:
Analysts may view the revenue growth positively, but concerns about the company's financial health and legal challenges could temper enthusiasm. The resolution of the ASX suspension and tax disputes will be key factors for investors.
Conclusion:
Investors should keep an eye on Range International's efforts to resolve its ASX suspension and legal matters, as well as its strategic initiatives for growth. The company's ability to navigate these challenges will be critical in maintaining its upward trajectory.