Key Highlights

  • Revenue fell 18% to $5.5 million, but gross profit rose 2% to $1.8 million and gross margin increased from 25.7% to 32.0%.
  • EBITDA loss narrowed to $0.8 million from $1.4 million, and the net loss after tax was $1.1 million, down from $2.0 million.
  • RLF China revenue rose 32% to $1.9 million, about 50% ahead of budget, at a 46% gross margin.
  • Operating cash outflow was $3.6 million, against $1.7 million a year earlier, and cash at 30 September was $6.4 million.

RLF AgTech Ltd (ASX:RLF) reported lower sales but a smaller loss for the September 2026 quarter, with the results compared against the same quarter of 2025 because of the business's seasonality. Revenue was $5.5 million, down 18%, while gross margin rose to 32.0% and operating expenses fell 20%. Operating cash flow moved the other way, with an outflow of $3.6 million, and cash ended the quarter at $6.4 million after a $3.9 million capital raise settled on 1 September.

Profit Lines Improve on Lower Sales

Gross profit increased 2% to $1.8 million from $1.7 million even as revenue declined from $6.7 million. Operating expenses fell from $3.2 million to $2.6 million, led by a 57% cut in corporate costs, and selling and administration costs dropped $0.6 million. EBITDA was a loss of $0.8 million, compared with $1.4 million in the September 2025 quarter, and the net loss after tax of $1.1 million compares with $2.0 million. Profit figures are unaudited management accounts.

The margin gain came from a pricing change at LiquaForce. Mid-season the business stopped quoting on an open-book basis, where growers saw ingredient and purchase prices and RLF earned only a small tolling fee on raw materials. Quotes are now for finished product with a margin included.

LiquaForce, RLF Australia and RLF China

LiquaForce revenue was $3.4 million, down $1.75 million or 34%. The season started late, pre-season prepayments did not arrive, and high urea and diesel costs and softer sugar prices led growers to place orders later and in smaller volumes. Gross margin there rose from 18% to 21%, limiting the gross profit decline to $0.2 million. The company re-opened its Mackay site to supply the Mackay and Sarina districts after freight from Ingham became uneconomic. RLF Australia recorded revenue of $0.13 million, against $0.10 million a year earlier, and three agronomists are joining between late October and mid-November.

RLF China revenue rose 32% to $1.9 million, with a 46% gross margin, and its EBITDA loss narrowed from $0.4 million to $0.1 million. The team made 620 visits to existing customers and 260 to prospects across six sales regions, won 15 new customers, completed 96 trial reports and held 43 technical meetings. In South East Asia, the business is being rightsized, with customers in Vietnam and Cambodia to be served from Australia and China.

Why Cash Moved Differently From Profit

Receipts from customers were $4.2 million, down from $5.4 million. The operating outflow of $3.6 million was $2.5 million larger than the accounting loss, and about three quarters of it came from working capital and liability movements. Key LiquaForce suppliers tightened credit terms in July after late payments in the 2025 season, so trade creditors rose $1.0 million against $3.0 million a year earlier. About $0.3 million of previously expensed liabilities, mainly redundancy, leave entitlements and deferred director fees, was paid. Trade debtors rose $0.9 million and inventory $0.7 million, and RLF China delivered $0.9 million of orders prepaid in June.

The $3.9 million raise comprised $3.59 million of placement shares at $0.028 and $0.31 million of convertible notes. Cash was held in Australia ($3.6 million) and China ($2.8 million). Appendix 4C shows 1.8 quarters of funding, and management said the current outflow is not expected to continue as seasonal receivables are collected.

Board Changes and Quarter Summary

Shen (Mike) Lu and Paul McKenzie stepped down as directors on 30 September, and Greg Hunt, Tim Watson and Chris Ramsey joined as non-executive directors on 1 October. Mr Lu continues as CEO Asia. The annual general meeting is set for 26 November 2026. Related party payments of $171,000 were director fees. The quarter combined a halved net loss and higher margins with a larger operating cash outflow.