• Revenue down 10.1% to $142.9 million, impacted by reduced sales to major Middle East customer
• EBITDA pre-AASB 16 loss of $6.4 million, down from $1.2 million profit in 1H24
• Net debt up $13.3 million to $41.1 million due to negative earnings

Pro-Pac Packaging Limited (ASX: PPG) announced its results for the half-year ended 31 December 2024 (1H25). Revenue from continued operations decreased by 10.1% across the Group to $142.9 million, which included a $13.6 million reduction in sales to the company's major customer in the Middle East and a 3% reduction in other volumes in the Flexibles business. PBT decreased by $7.3 million to a loss of $12.8 million compared to 1H24, primarily due to the reduced volumes and revenues. EBITDA pre-AASB 16 declined by $7.6 million to a loss of $6.4 million compared to 1H24. Net debt increased by $13.3 million to $41.1 million, reflecting the negative earnings for the period. The Flexibles division saw a 12.8% decrease in revenue, while the Industrial Specialty Packaging division's revenue decreased by 0.6%. The company is currently working with advisors to undertake a strategic review of its businesses and explore plans for improved profitability and longer-term funding arrangements.

The company expects full-year FY2025 EBITDA (before significant items) to be below FY2024 levels, as market conditions and exchange rate movements continue to be challenging and impact expected results in the second half.

The business continues to perform below expectations, and the company is working with advisors to undertake a strategic review of its businesses and explore plans for improved profitability and longer-term funding arrangements.