Highlights

  • Sea Forest (ASX:SEA) has delivered its 1Q27 Quarterly Update for the period ended 30 September 2026, reporting Revenue growth of 67% on the prior quarter, driven by continued expansion of SeaFeed supplementation volumes.
  • A distribution agreement with Teys Australia, one of Australia's leading beef processors and exporters, was executed in October 2026, with the parties working toward an indicative target of 480,000 head supplemented by 30 June 2027.
  • The company currently has approximately 131,000 cattle under SeaFeed agreement, with the Teys Australia arrangement expected to significantly accelerate growth in the cattle supplemented count.
  • Sea Forest's production capacity expansion program is actively underway, with Capital Expenditure focused on scaling Manufacturing to meet growing Demand for SeaFeed across Australia and internationally.

Sea Forest Limited (ASX:SEA) has released its 1Q27 Quarterly Update for the period ended 30 September 2026, reporting a notable uplift in SeaFeed revenue compared to the prior quarter, driven by increased supplementation volumes across the company's growing customer base. The update also confirms the execution of a major distribution agreement with Teys Australia, one of the most significant commercial developments in the company's history to date.

1Q27 Financial and Operational Performance

Revenue from SeaFeed sales increased by 67% in 1Q27 compared to the preceding quarter, reaching approximately A$3.4 million for the three-month period. This uplift was attributed to higher volumes of SeaFeed being supplied to beef and dairy cattle producers under existing and new Supply agreements. The company has been actively expanding its customer base, adding new supply partners and increasing supplementation volumes with established customers.

The 1Q27 result demonstrates the accelerating commercial trajectory that Sea Forest has been building since its ASX listing. Earlier quarterly updates had shown sequential revenue improvements, and the 1Q27 result represents the strongest quarterly revenue outcome recorded by the company to date. The revenue growth reflects both the continued scale-up of SeaFeed production and the company's effectiveness in securing and fulfilling supply commitments with agricultural producers.

Teys Australia Distribution Agreement and Herd Expansion

The most significant strategic development of the quarter was the execution of a distribution agreement with Teys Australia in October 2026. Teys Australia is among Australia's largest beef processors and exporters, operating across multiple states with extensive connections to cattle producers. Under the distribution arrangement, Teys Australia will assist in supplying SeaFeed to cattle producers within its supply network, with the parties working toward an indicative target of 480,000 head supplemented by 30 June 2027.

This target represents a substantial increase from the approximately 131,000 cattle currently under SeaFeed agreement, and if achieved, would mark a step-change in the scale of the company's operations. The Teys Australia relationship provides Sea Forest with access to a well-established agricultural supply chain and the commercial credibility that comes with a major industry partner, potentially accelerating adoption among producers who are already within the Teys network.

Production Capacity and Capital Deployment

Alongside its commercial growth, Sea Forest is actively deploying capital to expand its production capacity. The company's IPO prospectus included a significant allocation for capital expenditure to expand manufacturing, and during 1Q27, this program continued with ongoing Investment in production infrastructure. The company has also indicated plans to establish a regional distribution centre in Newcastle, which would support more efficient supply to producers on the eastern seaboard.

Sea Forest's carbon project, registered under the Verra Verified Carbon Standard, continues to advance as an additional revenue pathway. The Carbon Credit framework allows the company to seek certification for methane emission reductions delivered by SeaFeed, creating potential value from the environmental impact of the product beyond the feed supplement sales revenue. As supplementation volumes grow, the scale of certified emission reductions eligible for carbon credit generation also increases, improving the revenue potential of this pathway.

Key Insights

Sea Forest's 1Q27 Quarterly Update reflects a company experiencing meaningful commercial momentum, with SeaFeed revenue growth, a major new distribution partnership, and expanding production capacity all pointing toward an accelerating Business trajectory. The Teys Australia distribution agreement positions Sea Forest to target a substantially larger herd count in the coming quarters. With carbon credit revenue also developing alongside the core feed supplement business, the company is building a multi-revenue model aligned with the growing importance of agricultural methane reduction in sustainability agendas.