Sea Forest Lifts Quarterly Revenue 83% as SeaFeed Distribution Expands

Sea Forest (ASX: SEA) increased fourth-quarter SeaFeed revenue receipts by 83% from the previous quarter to $2.1 million as supplementation volumes grew across its customer base.

The environmental technology company finished FY26 with 131,000 grain-fed cattle under agreement, an 11% quarterly increase supported by new contracts with Avondale Ag and New Agriculture.

Sea Forest generated quarterly net operating cash inflows of $0.7m, including a one-off $1.9m research and development tax incentive refund, while its cash balance rose from $8.4m to $12.6m.

Commissioning of its first regional mixing and distribution centre has begun in Newcastle, giving the business new infrastructure to support further growth across eastern Australia.

Agriculture Agreements

Dual An exclusive 12-month agreement with Avondale Ag covers about 5,000 feedlot cattle, with the customer expecting the cohort to be fully inducted onto SeaFeed by October 2026.

Sea Forest’s exclusive 36-month agreement with New Agriculture begins with an 8,000-head capacity feedlot targeted for full induction by December 2026, extending to a 25,000-head Wagyu grazing operation and a 198,000-head northern pastoral operation.

The agreements helped lift the cumulative cattle covered by customer contracts and broadened SeaFeed’s potential reach beyond established feedlot customers into the grazing sector.

“Revenue has increased every quarter as more cattle come onto SeaFeed across an expanding customer base,” chief executive officer Sam Elsom said.

Distribution Capacity Moves Closer

The 1,500-square-metre Newcastle facility can process and distribute up to 5,000 tonnes of SeaFeed each year, adding capacity to service a further 300,000 cattle.

Locating mixing and distribution closer to suppliers and customers is intended to reduce logistics costs, shorten delivery times and enable more timely and frequent deliveries.

The centre is designed to support scaling in New South Wales and Queensland, which Sea Forest identified as accounting for 44% and 18% of Australia’s cattle herd respectively.

The company expects revenue to continue to increase as additional head are supplemented.

Aquaculture And Carbon Pathways

Sea Forest has started commercial-scale trials with barramundi producer Mainstream Aquaculture to assess the benefits of Asparagopsis in formulated feed at the producer’s Victorian facility.

The work follows research by the University of the Sunshine Coast and Deakin University that identified growth improvements in salmon and barramundi, providing an early test of potential applications beyond cattle and grazing.

The company is advancing regulatory approvals and customer trials in priority international jurisdictions while its R&D team develops additional delivery mechanisms intended to support wider adoption.

From the second quarter of FY27, Sea Forest expects carbon trading to provide a new revenue stream for the business and its customers as they join its registered Verra carbon project, with each 100,000 cattle using SeaFeed expected to abate more than 100,000 tonnes of carbon dioxide equivalent annually and generate tradeable carbon credits.

Mr Elsom said the Sea Forest enters FY27 “on a stronger financial footing than ever”.