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Highlights

  • Acquired 2,386-hectare Northern Territory property for $10.25 million.

  • Sold “Kentucky” aggregation for $38 million to support debt reduction and reinvestment.

  • Operating cash flow deficit driven by winter crop investment; financing inflows bolstered liquidity.

Duxton Farms (ASX:DBF) has made a notable stride in reshaping its agricultural portfolio in recent quarter, announcing both a strategic acquisition in the Northern Territory and a significant asset divestment. The company purchased the 2,386-hectare NT Portion 8554 property for $10.25 million, further consolidating its Northern Territory land bank. In a parallel move, Duxton Farms completed the sale of its “Kentucky” aggregation on April 9 for $38 million. The transaction included 6,020 hectares of arable land and 48 megalitres of water, representing a major reshuffling of its land assets. According to the company, proceeds from the sale will be allocated to debt reduction, shareholder distributions, and new investments.

From a financial perspective, Duxton Farms reported an operating cash flow deficit of $2.155 million for the March quarter. The shortfall was attributed primarily to upfront costs for the 2026 winter crop. Meanwhile, cash used in investing activities totaled $12.787 million. On a more positive note, financing activities contributed $10.574 million.

Operationally, Duxton continues to manage a vast and diversified agricultural portfolio spanning 177,332 hectares. Crop updates noted delays in sowing due to persistent hot and dry weather, which led to revisions in crop rotation plans. The company is responding with irrigation system improvements aimed at enhancing field productivity and resilience to climate variability.

The company also reported steady livestock sales, which contributed to its revenue stream during a period of crop cycle adjustments.