How Murray Cod Australia Is Navigating Growth and Operational Challenges in Q2 FY26

Strong Sales Growth Despite Operational Setbacks

Murray Cod Australia Ltd (ASX – MCA) has delivered a compelling performance in the December 2025 quarter, with sales volumes soaring 61% year-on-year to 140.6 tonnes and customer receipts rising 39% to $3.7 million. This growth underscores the company’s expanding footprint in the aquaculture sector, particularly in processed fish sales which jumped 71% compared to the prior corresponding period.

However, the company’s sales did not fully meet earlier expectations, hindered by several operational challenges. Delays in obtaining Best Aquaculture Practices (BAP) certification, initial reluctance to discount smaller fish, processing setbacks within its distribution partner PFD Foods, and temporary personnel illnesses all contributed to slower-than-anticipated sales momentum. Live fish sales also underperformed, prompting a review of logistics arrangements.

Certification Milestones and Market Access

December 2025 marked a significant milestone with MCA securing the coveted 3-star BAP certification, validating its commitment to environmental sustainability, food safety, and animal welfare. This certification opens doors to larger corporate buyers, including supermarkets, hotels, airlines, and cruise lines, and facilitates entry into Australia’s premium retail segments.

Complementing this, the company’s Halal certification, achieved earlier in the fiscal year, positions MCA favourably for Middle Eastern markets. Recent visits to the region signal active engagement with potential buyers, while ongoing efforts to register processed products for export to China are underway, pending government approvals.

Distribution Expansion and Retail Growth

MCA has broadened its distribution channels, notably through a partnership with PFD Foods, which began late in the quarter. Although PFD is yet to fully assume processing responsibilities, it has commenced distribution to Woolworths stores, where MCA has doubled its retail presence from 67 to 134 outlets across New South Wales and Victoria. A coordinated promotional campaign scheduled for February 2026 aims to boost brand awareness and sales.

Domestically, the company remains focused on foodservice and premium restaurant segments, where demand for larger fish (above 3kg) continues to outstrip supply. Internationally, sales to Southeast Asian markets have gained traction, with Vietnam, Hong Kong, and Singapore showing notable growth.

Operational and Production Developments

Biomass at quarter-end reached 2,787 tonnes, a 12% increase from June 2025, supported by healthy growth conditions and expanded pond stocking. The company is on track to complete stocking of Cells 4 and 5 at its Stanbridge site, achieving full pond utilisation across all facilities. However, premium inventory of fish over 3kg remains limited, partly due to retention for the Aquna Gold Caviar program, which is gaining momentum.

Upgrades to hatchery facilities have improved larval weaning and juvenile growth, despite cooler-than-average pond temperatures delaying some transfers. These operational enhancements underpin MCA’s capacity to scale production and meet rising demand.

Financial Position and Outlook

While net cash used in operating activities was $5.3 million for the quarter, this represented a 17% improvement on the previous quarter, reflecting progress towards cashflow breakeven. The company holds $19 million in unused financing facilities, providing a solid buffer to support ongoing growth initiatives.

Looking ahead, MCA’s priorities include ramping up harvest volumes to free pond capacity for new fingerlings, leveraging certifications to secure new customers, completing infrastructure expansions, advancing China export approvals, and solidifying long-term offtake agreements. The appointment of a new Chief Sales and Marketing Officer signals a renewed focus on driving sales and brand strategy.