Duxton Farms’ Revenue Drops 24% as Net Loss Hits $15.8 Million

A Challenging Half-Year for Duxton Farms

Duxton Farms Limited has reported a substantial net loss of $15.8 million for the half-year ended 31 December 2025, marking a significant deterioration compared to a $3.1 million loss in the previous corresponding period. Revenue fell by 24% to $8.7 million, reflecting a period of operational headwinds and the financial impact of recent acquisitions.

The company’s financial results were heavily influenced by the acquisition of four private Australian agricultural businesses completed in late October 2025. These acquisitions; Duxton Bees Pty Ltd, Duxton Orchards Pty Ltd, Duxton Dairies (Cobram) Pty Ltd, and Duxton Dried Fruits Pty Ltd; have broadened Duxton Farms’ commodity exposure to include walnuts, dried grapes, apples, honey, and pollination services, marking a strategic pivot from its traditional broadacre cropping focus.

Strategic Expansion and Portfolio Diversification

The Board views these acquisitions as a transformative step towards reducing earnings volatility and enhancing long-term value creation. The expanded portfolio now spans six Australian states and territories, with a rebalanced mix favouring permanent horticulture, viticulture, and apiculture. This diversification aims to stabilise the Group’s earnings profile over the medium term, though the full benefits are expected to materialise over three to five years.

Operational integration is underway under the leadership of Chief Operating Officer Simon Stone, with efforts including the internalisation of finance functions and the alignment of business units. While the process has been relatively smooth so far, the Board acknowledges that refining the balance between development and mature assets will be an ongoing focus.

Capital Management and Going Concern Considerations

Despite the losses, Duxton Farms’ net asset value increased to $142.7 million, up from $116.3 million a year earlier, reflecting the value of the expanded asset base. However, the Group recorded net cash outflows of $34 million from operating and investing activities during the period, largely linked to acquisition-related expenditures.

To manage liquidity, the company has initiated the sale of several properties, including Merriment and Cowaribin, with proceeds expected to support ongoing operations. The Group also increased borrowings substantially, with total secured debt rising to nearly $97 million. The Directors have flagged a material uncertainty regarding the Group’s ability to continue as a going concern, contingent on successful asset sales, capital expenditure management, and potential refinancing.

Operational Highlights and Sustainability Focus

Operationally, the Group is progressing development projects such as the Piambie pistachio orchard, which is expanding rapidly and is among Australia’s largest. Other horticultural assets like walnut groves and apple orchards are maturing, while apiculture operations have secured growing pollination contracts and are expanding honey production despite challenging weather conditions.

Post-acquisition, Duxton Farms is recalibrating its sustainability strategy to align with its larger, more diversified portfolio. The Group aims to meet emerging climate-related reporting standards and enhance resource efficiency through precision agriculture technologies. Environmental impacts, particularly in Northern Australia developments, remain a key focus for transparent management and community engagement.

Looking Ahead

The Board remains optimistic about the long-term prospects of the expanded portfolio, emphasizing a shift from asset growth to earnings maximization. However, investors should be mindful of the near-term volatility and integration risks as the Group navigates this strategic transformation.