Close the Loop’s packaging division has delivered double-digit revenue growth and a 48 per cent increase in EBITDA, emerging as the strongest performer in a year marked by extensive restructuring across the group.
Close the Loop reported revenue from continuing operations of $125.6 million for the year ended 30 June 2026, up 6 per cent on the previous corresponding period.
Gross profit rose 25 per cent to $46.2 million, while the gross margin increased from 31.1 per cent to 36.8 per cent. Group EBITDA reached $12.4 million, up 34.2 per cent, and adjusted net profit after tax and amortisation improved to $1.4 million, compared with a $5.4 million loss in FY25.
The packaging division recorded revenue growth of 16 per cent and EBITDA growth of 48 per cent. Close the Loop attributed the result to strong performance in South Africa, a greater share of business from existing customers and the addition of new tier-one customers.
The division supplies made-to-order flexible packaging and pouches across consumer goods, confectionery, bulk products, seafood, pet food and snacks. Its FY27 priorities include expanding the sales team, cross-selling between its Australian and South African operations and investing in packaging R&D, including smart packaging development.
Resource Recovery generated revenue of $55.4 million but recorded an EBITDA loss of $2.8 million. Close the Loop said this reflected the restructuring of its plastics recycling operations and its exit from lower-margin processing contracts. The plastics recycling business has been consolidated from three sites into one site, which the company expects to be profitable and cash-flow positive in FY27.
The group also divested ISP Tek Services, Alliance Paper and O F Flexo during the year. The exits and write-downs associated with discontinued businesses resulted in a $105.1 million loss, including a $99.3 million loss on the sale of ISP Tek Services.
Net debt stood at $38.1 million at 30 June, down $15.3 million. Following the post-year-end settlement of convertible notes, this was reduced further to $18.3 million at 31 July.
CEO Kesh Nair said FY26 had involved “the difficult decisions required to reset Close the Loop”, with the business now focused on growing its stronger operations, improving margins and cash conversion, and continuing to reduce debt.
“We have a much stronger platform today than we had at the beginning of FY26,” Nair said. “The next phase is about demonstrating that the reset can translate into consistent earnings and stronger cash generation.”
Close the Loop has reaffirmed FY27 EBITDA guidance of $14 million to $16 million, representing anticipated growth of approximately 13 to 30 per cent.
