• Revenue increased 6% to $73.1 million compared to previous quarter
• Secured $5 million asset finance facility and $13 million short-term financing facility
• Cash on hand of $0.6 million, with $8 million in unused facilities

Pro-Pac Packaging Limited (ASX:PPG) has released its quarterly activities report and Appendix 4C cash flow statement for the period ended 31 December 2024. The company reported revenue of $73.1 million, an increase of $4.3 million compared to the previous quarter. On 30 October 2024, the company drew down a new $5.0 million asset finance facility with ScotPac, and on 12 December 2024 entered into a $13.0 million short-term financing facility with its major shareholder Bennamon Pty Ltd. As at 31 December 2024, the company had cash on hand of $0.6 million and $8.0 million in unused financing facilities. Cash flows from operating activities for the quarter represented an outflow of $6.0 million, reflecting operational performance and an increase in working capital. The company continues to work with identified potential partners to establish a soft plastic film recycling plant, with negotiations on a trade waste agreement ongoing. Pro-Pac also announced the appointment of a new CEO, Mr Ian Shannon, and the retirement of director Rupert Harrington. The company plans to release its half-year results and interim financial report on 28 February 2025.

First half (unaudited) FY2025 EBITDA (before significant items) was an improvement on second half FY2024 (before significant items). However, December trading results were below expectations, and market conditions and exchange rate movements continue to be challenging, which will impact expected results in the second half.

Management will continue to implement offsetting margin improvement initiatives to address the challenging market conditions.