RLF AgTech posts record revenue and cash receipts in FY2022, expands with ASX debut
RLF AgTech revealed record revenue of $10.7 million for FY2022.
Australia-based RLF AgTech (ASX: RLF) has posted record revenue and cash receipts in the financial year ending 30 June (FY2022) — highlighting the company as a leading provider of high value crop nutrition products.
The company’s record revenue of $10.7 million was up 26% on FY2021’s figures, while cash receipts of $10.2 million were also at an all-time high and an increase of 26% on FY2021.
RLF AgTech managing director and chief executive officer Ken Hancock said the company’s efforts in FY2022 were a stepping-stone towards scaling the company globally.
“We have made a significant investment of time and resources, which will set us up for strategic and aggressive expansion as a leading provider of high value crop nutrition products,” he said.
The company had a strong cash balance of $8 million as at the end of FY2022 to fund it global expansion efforts.
ASX listing and continued Asia expansion
RLF AgTech made its debut on the ASX in April 2022, after successfully raising $8.5 million in its initial public offering.
The company closed the year with an estimated $2.2 million in forward annual sales contracts for FY2023 – as it looks to accelerate its expansion throughout Asia.
Its current customers include Hebei Veyong Bio-Chemical, Sichuan Davofeng, and Hainan Kangxifeng.
RLF AgTech increased in sales staff by 40% from FY2021 in Asia, and will continue to recruit. It expects sales from continued recruitment to flow significantly in FY2023.
In FY2022, the company secured a Cambodian distribution agreement in another effort to expand in Asia.
The agreement is worth an estimated US$1.7 million (A$2.4 million).
Carbon initiatives
Moving forward, RLF AgTech hopes to continue grow its wholly-owned subsidiary RLF Carbon – aiming to develop commercial opportunities for farmers to operate in the emerging soil carbon markets by reducing traditional fertiliser inputs and increasing carbon stored within the soil.
“Alongside the current business, the development of RLF Carbon presents a major global opportunity in carbon capture and net zero agriculture, while providing more nutritious, better yielding crops to the world,” Mr Hancock said.
After establishing RLF Carbon in October 2021, RLF AgTech set out to execute a letter of intent (LOI) with the Commonwealth Bank of Australia to create framework for a potential strategic alliance to help deliver the commercial solutions to Australian farmers.
The company is continuing discussions with the CBA to come up with potential strategic carbon opportunities going forward.
In the June quarter of FY2022, the company’s representatives met with individuals from the US Department of Agriculture and large entities which look to commercialise soil carbon initiatives.
During the period, RLF AgTech filed a patent protecting its method for accumulating carbon in soil.
The company also started glasshouse trials with the University of Western Australia in an effort to generate data to support its provisional patent application and attempts to start up Australia’s largest soil carbon field trials.
Executive changes
During the period, the company strengthened its board through the appointment of experienced Liza Carpene and Paul McKenzie as non-executive directors, as well as appointing Donald McLay as the non-executive chair.
RLF AgTech also appointed Su-Mei Sain as its chief financial officer, who has expertise in financial management of ASX listed entities.
Looking forward
RLF AgTech has bold initiatives in place for FY2023 and beyond – aiming to expand its workforce, carbon capture and global high value crop nutrition product footprint.
In terms of people, the company plans to double its sales team in crop nutrition markets to more than 100, complimenting in-house research and development capability.
It will also seek greater collaboration with universities, industry and growers to continue as a leading provider within the sector.
The Australian company will commence its large scale ACCU generation projects, and aim to establish first product revenues from its subsidiary, RLF Carbon.
In an effort to expand its global footprint, strategic partnerships in the Americas will be sought, looking for ways to grow global distribution and focus on growing revenues in the seed treatment technology segment.