RLF’s Debt Forgiveness and Cash Boost Mask Challenges Ahead

A Year of Transformation

RLF AgTech Ltd (ASX – RLF) has delivered a striking financial turnaround for the year ended 30 June 2025, reporting a 137% increase in revenue to $23.1 million and a 77% reduction in net loss to $1.8 million. This improvement reflects a comprehensive reset of the company’s operations and strategic focus across its key markets in Australia, China, and Southeast Asia.

Central to this transformation was the establishment of the RLF Australia Business Unit, which saw the company regain direct control over its domestic sales and manufacturing. With a $1 million investment during the year, RLF upgraded its LiquaForce manufacturing facility in Queensland and opened a new production site in Western Australia. The unit launched a curated 16-product portfolio and secured national trading agreements covering over 1,200 retail outlets, laying the groundwork for scalable growth in FY26.

Operational Progress Across Regions

In China, RLF focused on disciplined commercial execution, strengthening distributor relationships and tailoring products to regional crop needs. Enhanced sales tracking and digital engagement tools helped convert interest into orders, building a sustainable growth platform. Meanwhile, in Southeast Asia, the company advanced product registrations and distributor enablement in Vietnam and neighbouring countries, with early commercial orders supported by agronomic expertise.

India emerged as a promising long-term opportunity, with RLF initiating partner selection, regulatory scoping, and trial programs to tap into its vast agricultural market and dual cropping seasons. These efforts collectively position RLF for a robust pipeline of commercialisation and market expansion in FY26.

Financial Strength and Strategic Debt Management

RLF’s financial results were bolstered by a $2.2 million debt forgiveness agreement related to historical payables, recorded as other income. The company also improved cash flow by issuing shares and options to suppliers and directors in lieu of cash payments, preserving liquidity for operational needs. Cash receipts from customers rose 66% to $24.6 million, and net cash from operating activities surged 464% to $1.2 million.

At year-end, RLF held $6.5 million in cash, up 44% from the previous year, supported by a post-year-end $4.5 million placement aimed at funding raw materials, personnel, and capital expenditure. The company also reduced debt by $2.2 million and restructured management and governance to align incentives and tighten controls.

Innovating for Sustainability

Beyond financial metrics, RLF advanced its carbon sequestration initiative through the Accumulating Carbon in Soil System (ACSS). The Hillston pilot project validated that agronomic changes can measurably increase soil carbon and reduce emissions intensity, confirming the practicality of the methodology for broadacre farming. This positions RLF at the intersection of sustainable agriculture and emerging carbon markets.

With a strengthened balance sheet, revitalised operations, and a clear growth strategy, RLF AgTech is poised to scale its footprint across Australia and Asia in FY26, capitalising on rising demand for advanced crop nutrition and sustainable farming solutions.