Sea Forest (ASX:SEA) Posts 67% Quarterly Revenue Rise to $3.4 Million as Teys Australia Deal Targets 480,000 Cattle

Sonal Goyal

28 October 2026 01:11 PM AEDT

Sea Forest (ASX:SEA) Posts 67% Quarterly Revenue Rise to $3.4 Million as Teys Australia Deal Targets 480,000 Cattle

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Key Highlights

Revenue from SeaFeed sales rose 67% on 4Q26 to $3.4 million.
Net cash inflows from operating activities were $0.24 million.
Cash was $12.6 million and the aggregate position was $27.7 million at 30 September 2026.
A distribution agreement with Teys Australia works towards an indicative 480,000 head of cattle by 30 June 2027.

Sea Forest Limited (ASX:SEA) reported revenue from SeaFeed sales of $3.4 million for the September 2026 quarter (1Q27), an increase of 67% on the June quarter. The 28 October 2026 update also recorded net cash inflows from operating activities of $0.24 million and a cash balance of $12.6 million. After quarter end, the company signed a distribution agreement with Teys Australia, with an indicative target of 480,000 head of cattle supplemented with SeaFeed by 30 June 2027.

Quarterly Revenue and Cash Flow

Revenue received from SeaFeed sales rose to $3.4 million, which the company attributed to continued growth in supplementation volumes across its customer base. Receipts from customers in the Appendix 4C were $3.449 million. At 30 September 2026, 131,000 head of cattle were under agreement, unchanged on the prior quarter, with cattle being progressively inducted onto SeaFeed.

Net cash from operating activities was $0.24 million, supported by higher customer receipts and interest received. The prior quarter's figure was $0.75 million, which included a one-off $1.9 million R&D tax incentive refund. Staff costs were $2.021 million, administration and corporate costs $0.542 million, research and development $0.223 million and manufacturing and operating costs $0.602 million. Payments for property, plant and equipment were $0.313 million, and payments to related parties were $0.6 million, covering director remuneration and incentives.

The cash balance ended the quarter at $12.6 million, level with 4Q26, and the aggregate position was $27.7 million, compared with $27.6 million.

Teys Australia Distribution Agreement

On 7 October 2026, Sea Forest announced a distribution agreement with Teys Australia, one of the country's beef processors and exporters. The parties are working towards an indicative target of 480,000 head of cattle supplemented with SeaFeed by 30 June 2027, compared with the 131,000 head under agreement at quarter end.

Managing Director and Chief Executive Officer Sam Elsom described the agreement as a transformational commercial milestone. He said sales adoption during the quarter reflected the transition to the new distribution arrangements, and that the parties have been agreeing implementation arrangements for the broader rollout. The volume targets are collaborative and indicative, and are subject to conditions in the agreement. Mr Elsom also said discussions with potential customers in South Africa are continuing and that regulatory approval in Brazil is progressing.

Use of Funds and Product Background

Against the prospectus allocation of $33.376 million, the use-of-funds table shows a balance of $27.743 million for the period from 1 July 2025 to 30 September 2026. Utilised amounts include $971,000 on capital expenditure to expand production against an allocation of $17.591 million, and $427,000 on product innovation and intellectual property. Working capital and overheads used $11.76 million against an allocation of $9.279 million, offset by $7.342 million of customer revenue, $678,000 of interest and a $1.862 million R&D tax incentive refund.

SeaFeed is formulated to replicate the bioactive compounds of Asparagopsis seaweed and is reported to reduce methane emissions in ruminant livestock by up to 80%. Sea Forest operates three Australian sites across Tasmania and New South Wales, and its cultivation solution supplies trials in the UK, Europe and South America.

Where the Quarter Leaves the Company

Sea Forest ended 1Q27 with revenue of $3.4 million, a positive operating cash flow of $0.24 million, $12.6 million in cash and 131,000 head of cattle under agreement. The Teys Australia agreement, signed after quarter end, sets an indicative figure of 480,000 head by 30 June 2027. The company described itself as well funded for its planned activities. Other cash flows included $33,000 from disposal of property, plant and equipment and $30,000 from loans to other entities, against the $313,000 of equipment payments, for net outflows of $250,000.

FAQs

Q: What was Sea Forest's revenue in 1Q27?

A: Revenue from SeaFeed sales was $3.4 million, up 67% on 4Q26.

Q: How many cattle were under agreement?

A: 131,000 head of cattle were under agreement at 30 September 2026, unchanged on the prior quarter.

Q: What does the Teys Australia agreement target?

A: The parties are working towards an indicative target of 480,000 head of cattle supplemented with SeaFeed by 30 June 2027. The targets are collaborative and subject to the conditions in the agreement.

Q: What was the cash position at quarter end?

A: Cash was $12.6 million, level with 4Q26, and the aggregate position was $27.7 million, compared with $27.6 million.

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