Q1 FY27 highlights: Sea Forest revenue up 67% to $3.4 million
In its 1Q27 quarterly update for the period ended 30 September 2026, Sea Forest Limited (ASX:SEA) reported revenue of $3.4 million, up 67% on 4Q26, reflecting continued growth in SeaFeed™ supplementation volumes across its customer base. The company also recorded net cash inflows from operating activities of $0.24 million.
The quarter’s highlights, as set out by the company:
- Revenue up 67% on 4Q26 to $3.4 million
- Net cash inflows from operating activities of $0.24 million
- Distribution agreement signed with Teys Australia, with the parties working towards an indicative target of 480,000 head of cattle by 30 June 2027 (post-quarter end)
Sam Elsom, Managing Director, Chief Executive Officer and Co-Founder
“FY27 commenced with another quarter of net cash inflows ahead of the transition to our new distribution arrangements.”
Revenue growth alongside positive operating cash flow points to a commercial model gaining traction.
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Financial results and cash position
Cash flow and balance sheet
At 30 September 2026, Sea Forest had 131,000 head of cattle under agreement, unchanged on the prior quarter, with cattle progressively being inducted onto SeaFeed™ supplementation.
Cattle under agreement have been built up through exclusive on-farm agreements such as the 12-month Avondale Ag contract, which prohibits competing products during the term and supports recurring revenue visibility.
Operating cash inflow of $0.24 million was supported by higher customer receipts and interest received. The 4Q26 figure of $0.75 million had included a one-off $1.9 million R&D tax incentive refund, which provides context for the comparison.
Sea Forest ended the quarter with a cash balance of $12.6 million (4Q26: $12.6 million) and an aggregate position of $27.7 million (4Q26: $27.6 million). In addition to the cash balance, the company holds $15.11 million in term deposits with maturities of between 6 months and 9 months.
Payments to related parties were $0.6 million, comprising remuneration and short-term incentives for executive and non-executive directors. No financing facilities were drawn at quarter end, and the estimated quarters of funding figure is marked N/A because operating cash flow was positive.
Use of funds
The company presented its use of funds from 1 July 2025 to align with the approach used in the Prospectus, where IPO proceeds and the existing cash balance were treated as a single pool of available funding. The table below reproduces the source figures.
| Category | Prospectus allocation ($’000) | Utilised ($’000) | Balance remaining ($’000) | 1Q27 movement ($’000) |
|---|---|---|---|---|
| Capital expenditure to expand production | **17,591** | **(971)** | **16,620** | **(313)** |
| Product innovation and IP (agriculture and aquaculture SeaFeed™ products) | 3,474 | (427) | 3,047 | (136) |
| Product registration and approvals | 400 | (120) | 280 | (50) |
| Voluntary Carbon Project | 632 | (88) | 544 | (36) |
Capital expenditure to expand production carries the largest allocation, with $16.62 million remaining after $971,000 utilised and a $313,000 movement in 1Q27.
Why methane-reducing feed matters for investors
SeaFeed™ is Sea Forest’s proprietary product. It has been scientifically formulated to replicate the bioactive compounds of Asparagopsis, a seaweed, and is described by the company as proven to reduce methane emissions in ruminant livestock by up to 80%.
A product of this kind needs channel access to producers to reach scale. Sea Forest has three Australian sites across Tasmania and New South Wales and is B-Corp certified, and the distribution arrangement is the route by which the product’s science is intended to reach commercial adoption.
Teys Australia agreement and what happens next
Distribution agreement (post-quarter end)
On 7 October 2026, Sea Forest announced a distribution agreement with Teys Australia, described in the announcement as one of Australia’s leading 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 131,000 currently under agreement.
Sam Elsom, Managing Director, Chief Executive Officer and Co-Founder, said sales adoption during the period reflected the transition to the new distribution arrangements. The targets are “collaborative and indicative and are subject to the conditions set out in the agreement.”
For readers wanting to understand the contract mechanics, our detailed coverage of the Teys agreement terms explains the exclusivity across Australia and New Zealand, the 90-day termination right, and why the 480,000 head figure is a good-faith target rather than a guaranteed purchase commitment.
Sam Elsom, Managing Director, Chief Executive Officer and Co-Founder
“The Distribution agreement is a transformational commercial milestone for Sea Forest…”
What to watch
- Teys Australia target: an indicative target of 480,000 head of cattle supplemented with SeaFeed by 30 June 2027, subject to the conditions in the agreement. Sea Forest and Teys Australia are working towards it, and it determines the scale of the rollout.
- South Africa: discussions with potential customers are continuing.
- Brazil: regulatory approval is progressing.
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