• Revenue decreased 10.1% to $142.9 million due to reduced sales to a major Middle East customer and lower Flexibles volumes
• EBITDA pre-AASB 16 decreased to a loss of $6.4 million due to reduced volumes and revenues
• Net debt increased to $41.1 million due to the negative earnings result

Pro-Pac Packaging Ltd, an Australian & New Zealand flexible packaging business, reported its financial results for the first half of FY25. Revenue decreased by 10.1% to $142.9 million, reflecting a material reduction in sales to the company's major customer in the Middle East ($13.6 million impact) and a 3% decline in other Flexibles volumes. The lower revenue volumes also impacted profitability, with EBITDA pre-AASB 16 before corporate costs decreasing to a loss of $2.3 million from a $5.6 million profit in the prior period. The Specialty Packaging segment maintained volumes, with revenue decreasing by only 0.6% and EBITDA pre-AASB 16 before corporate costs increasing by $0.7 million to $3.3 million. The company's net debt increased from $27.8 million to $41.1 million, largely due to the negative earnings result. Pro-Pac Packaging remains committed to the management of the physical and mental wellbeing of all workers, with the Total Recordable Injury Frequency Rate (TRIFR) and Lost Time Injury Frequency Rate (LTIFR) remaining in single digits.

First half FY2025 EBITDA (before significant items) was an improvement on second half FY2024 (before significant items), however the company expects full year FY2025 to be below FY2024 EBITDA (before significant items) due to challenging market conditions and exchange rate movements.

The company is currently working with advisors to undertake a strategic review of its businesses and to explore and execute on plans for improved profitability and longer term funding arrangements.