Terragen Reports 87% Q2 Sales Growth and $2.8m Cash as Key Trials Advance

Strong Sales Momentum for Ruminant Probiotic

Terragen Holdings Limited has reported a notable 87% increase in sales of its flagship product, Terragen Probiotic for Ruminants (TPR), in the second quarter following its launch in April 2025. This surge reflects growing market acceptance and demand for biological solutions that enhance livestock productivity while reducing environmental impact.

Major Feedlot Trial to Validate Commercial Impact

A pivotal 100-day feedlot trial is underway at Mort & Co’s Grassdale facility, Australia’s largest single-site beef feedlot, involving over 10,000 head of grain-fed cattle. Led by Professor Jane Quinn from Charles Sturt University, the trial aims to replicate earlier promising results that showed a $57 increase in carcass value per animal. The integration of an automated biological dispenser into existing feeding systems marks a significant step towards scalable commercial application. Results on feedlot performance are expected by mid-2026, with carcass grading data to follow in the latter part of the year.

Expanding Global Footprint with Regulatory Progress

Terragen has secured necessary permits from the Canadian Food Inspection Agency, enabling research trials at the Lethbridge Research and Development Centre in Alberta. Phase 1 of this North American trial, focusing on animal health and digestion, has concluded successfully, with Phase 2 now underway to assess longer-term outcomes under commercial feedlot conditions. These trials are critical for supporting regulatory approvals and commercial negotiations in the lucrative North American market. Meanwhile, approvals in Brazil and ongoing regulatory work in Canada signal a concerted push for global market access.

Biostimulant Great Land Plus Gains Traction

Terragen’s biostimulant product, Great Land Plus (GLP), continues to demonstrate strong commercial promise. A recent glasshouse tomato trial conducted by Elders Pakenham recorded the highest yield and heaviest fruit weight, underscoring GLP’s potential to enhance crop productivity. Independent research confirmed GLP’s compatibility with Roundup Ready genetically modified crops, allowing simultaneous application with glyphosate herbicides; a practical advantage for growers. A purchase order from Mort & Co Fertilisers for 2026 deliveries anticipates a 57% sales increase in the second half of the fiscal year, reflecting growing commercial confidence.

Financial Position and Operational Outlook

Despite challenging drought conditions and subdued trading in the dairy sector impacting total sales, Terragen ended the quarter with $2.8 million in cash reserves, a modest $0.2 million decrease from the previous quarter. Cash receipts improved significantly, up 256% quarter-on-quarter, driven by seasonal demand and sales timing. Operating costs normalized after prior bulk raw material purchases, and the company received nearly $1 million from the R&D tax incentive, supporting ongoing innovation efforts. Payments to related parties, including directors’ fees and salaries, amounted to $123,000.

Looking Ahead, Innovation and Market Expansion

Terragen is advancing its companion animal probiotic program, having completed safety and palatability trials and moving into pilot-scale manufacturing. Negotiations with a global companion animal company are ongoing but have yet to yield binding agreements. Additionally, research into nitrogen-fixing microbes in collaboration with Queensland University of Technology is progressing, with promising pot trial results that could further diversify Terragen’s agricultural biotechnology portfolio.