Highlights

  • Duxton Farms has expanded its agricultural portfolio across multiple farming sectors.
  • The company’s asset base includes farmland, water entitlements and biological assets.
  • Debt levels and funding requirements remain key areas of investor attention.
  • Asset sales are underway as part of Portfolio Management activities.
  • The company is focused on improving financial flexibility across its operations.

Duxton Farms Limited (ASX: DBF) has evolved from a broadacre cropping Business into a diversified agricultural group with exposure across multiple farming activities. The company’s portfolio now includes cotton, grain, honey, orchards, dried fruits, dairy and livestock operations across several Australian regions.

The company’s recent updates have focused on portfolio restructuring, asset sales, financial position and managing funding requirements while maintaining exposure to agricultural assets.

Business Expansion and Portfolio Changes

Duxton Farms expanded its operations following the Acquisition of four related agricultural businesses in October 2025, including Duxton Bees, Orchards, Dairies and Dried Fruits.

The transaction involved total consideration of $76.9 million, including $49.3 million in shares and $15.2 million in cash. Following the acquisition, shares on issue increased from 41.2 million to 107.1 million.

The expanded portfolio now covers approximately 180,000 hectares across six Australian states and territories, along with owned water entitlements of 20,468 megalitres and leased water entitlements of 12,952 megalitres.

The company has since commenced portfolio adjustments, including the sale of selected agricultural assets. The Forbes aggregation was placed on the market, the apple business was under contract for approximately $9.2 million, and three additional properties with a combined Book Value of $65.6 million were listed for sale.

Financial Performance and Asset Position

For the half year ended 31 December 2025, Duxton Farms reported Revenue of $8.7 million, down 24% compared with the previous corresponding period. The company recorded a loss after tax of $15.8 million compared with a loss of $3.1 million in the prior period.

Net Assets were reported at $142.7 million, with Net Asset Value (NAV) of $1.33 per share and Net Tangible Assets (NTA) of $1.21 per share.

The company’s agricultural asset base includes biological assets valued at $16.8 million, water rights valued at $13.5 million and property, plant and equipment of $185.2 million.

Agricultural conditions, Commodity prices and operational performance remain important factors influencing financial outcomes.

Debt and Liquidity Position

Duxton Farms’ funding position remains a key consideration. At 30 June 2026, the company reported facilities of $108.2 million, with $103.0 million drawn and approximately $5.2 million unused.

The company’s $60 million CBA and $24.25 million NAB term loans mature on 31 December 2027.

Cash balances were reported at $1.186 million against overdrafts of $14.481 million, resulting in negative net cash of $13.3 million. The company reported operating cash outflows of $31.2 million during FY26, with approximately 1.19 quarters of available funding based on its quarterly Cash Flow report.

Managing liquidity, asset sales and banking arrangements remain important areas for the company.

Agricultural Operations and Challenges

Duxton Farms continues to manage operations across multiple agricultural categories, including honey, dried fruits, dairy, orchards, cotton and grain.

During FY26, operational conditions affected production outcomes. Honey production was 320 tonnes compared with a forecast of 660 tonnes due to dry conditions in New South Wales. Dried fruit production was 2,722 tonnes, impacted by mould-related issues.

The company is also reviewing its broadacre operations while assessing opportunities to improve portfolio efficiency.

Key Risks and Challenges

Duxton Farms faces risks associated with agricultural conditions, commodity prices, funding requirements and asset sale execution. The company’s December half accounts included material uncertainty regarding its ability to continue as a going concern, with reliance on completing asset sales or securing additional funding. High Debt utilisation and operating cash outflows remain important considerations.

Future Outlook

Duxton Farms’ future outlook will depend on progress with asset sales, debt management, agricultural operating conditions and lender support. The FY26 results are expected to provide further visibility on the company’s financial position, asset valuations and cash flow requirements. Investors will monitor property sale outcomes, refinancing discussions, operating performance across agricultural segments and the company’s ability to improve financial flexibility while maintaining exposure to agricultural assets.

Conclusion

Duxton Farms (ASX: DBF) has developed a diversified agricultural portfolio through acquisitions and asset expansion. While the company holds exposure to farmland, water assets and agricultural operations, managing debt levels, liquidity and portfolio adjustments remain central factors influencing its future direction.