RLF AgTech posted a seasonally strong June quarter with $7.1 million in cash receipts, driven by record pre-season payments in China and tight cost control that brought operating cash flow close to breakeven.
- Group cash receipts rose to $7.1 million in June quarter
- Net operating cash outflow shrinks to $0.16 million
- China division posts record pre-season payments of $4.82 million
- Australian sales grow sixfold but remain below budget
- $4.5 million placement completed, cash balance rises to $6.6 million
Seasonal Surge and Cost Discipline Drive Cash Flow Improvement
RLF AgTech Ltd (ASX:RLF) delivered its strongest quarter of the year in the June 2026 period, with group cash receipts climbing to $7.1 million, nearly triple the $2.5 million recorded in the March quarter. This seasonal spike, expected given the company's diverse agricultural markets, was underpinned by a record intake of pre-season payments in the China division, which accounted for approximately $4.8 million of the total.
Despite ongoing global supply disruptions following the closure of the Strait of Hormuz, the company's full-year cash receipts held steady at $25.4 million, matching FY25 levels. More notably, RLF's relentless focus on cost management has sharply reduced its net operating cash outflow from $5.4 million in March to just $0.16 million, nudging the group close to operating cash flow breakeven.
China Division Anchors Performance with Record Prepayments
The China business remains the backbone of RLF's international operations. For the quarter ended June 30, it reported revenues of approximately AUD $4.23 million, slightly ahead of budget, with a robust product margin of around 48%, surpassing the planned 42%. Customer receipts reached RMB 27.45 million (~AUD $5.78 million), driven by 250 customers including 25 new accounts. The pre-season payment figure of RMB 22.93 million (~AUD $4.82 million) set a new monthly record, eclipsing last year's high and providing a solid cash flow foundation for the next 12 months.
Industry recognition followed with RLF China being named among the "2026 CIS Top 50 Foreign-Invested Specialty Fertiliser Brands," highlighting its product innovation and market service quality.
Australian Sales Rebuild Shows Progress but Faces Seasonal Headwinds
RLF's Australian business, still in a rebuilding phase after restructuring and rightsizing initiatives, posted FY26 domestic sales of approximately $0.68 million. While this fell short of stretch budgets, it represented a more than sixfold increase on the prior corresponding period, albeit from a modest base. The sales team, only fully operational since early 2026, missed the critical spring 2025 crop planning window, limiting immediate program conversions.
Early sales momentum was hampered by dry conditions and reduced planting areas in key regions such as Western Australia and New South Wales. However, encouraging direct-to-grower sales in Central West Queensland and corporate farming sectors in NSW and WA suggest a template for growth as the company transitions to a crop-programme model integrating seed primers, foliar products, and biologicals.
To bolster demand, RLF ran a targeted digital marketing campaign that has driven increased website traffic and enquiries, with management now focused on converting engagement into sales.
LiquaForce Navigates High Urea Prices and Deferred Grower Spend
LiquaForce, RLF's Queensland-based liquid fertiliser arm primarily serving the sugarcane industry, contributed approximately $12.1 million in customer receipts for the financial year, making it the largest domestic cash contributor. However, unlike China, LiquaForce saw a significant drop in pre-season prepayments during the June quarter, a departure from prior years when around $2 million would typically be received.
Elevated global urea prices; near multi-year highs due to Middle East supply disruptions; combined with softer sugar prices have led growers to defer discretionary liquid fertiliser spend and adopt more "just-in-time" ordering strategies. Management emphasises this as a timing and affordability issue rather than a fundamental demand shift, with the bulk of the cane application season still ahead.
Operational improvements were evident with completion of rightsizing and manufacturing centralisation to the Ingham factory, alongside infrastructure upgrades such as the installation of an on-farm storage depot in Sarina and applicator refurbishments.
Leadership Renewal and Capital Structure Updates
RLF continued its executive renewal with the appointment of Andrew Hunter FCPA as Chief Financial Officer and Company Secretary, effective July 20, 2026. Hunter brings over 30 years of financial leadership, including senior roles at Macquarie Group and Export Finance Australia. He replaces Zaiqian Zhang, who is departing after two and a half years.
The company completed a $4.5 million placement in April, bolstering its cash position to $6.6 million at quarter-end. Additionally, RLF issued 12 million performance rights to the CEO under a new remuneration framework linking incentives to share price milestones, revenue growth, and operating cash flow, reinforcing management's commitment to sustainable growth and disciplined capital management.
Sustainability and Innovation Efforts Continue
RLF Carbon's Hillston Soil Carbon Project in New South Wales advanced into full crop monitoring during the quarter, leveraging satellite imagery and on-ground testing to track crop health and soil conditions. This data-rich pilot aims to link advanced plant nutrition with measurable soil health improvements, positioning RLF to support growers amid evolving emissions reporting requirements.
Meanwhile, the company’s field trial programme remains active, with 107 trials completed across China, including a notable 32% yield increase in a North China wheat demonstration and improved root and soil conditions in a Yunnan lily fertigation trial. These results, while indicative and single-site, underpin RLF's product development and market expansion strategies.
Bottom Line?
RLF's near breakeven cash flow and record China prepayments mark a critical inflection point, but Australian sales execution and LiquaForce’s response to volatile fertiliser prices will shape the next phase.
Questions in the middle?
- Can RLF’s Australian sales rebuild convert increased engagement into sustained revenue growth in FY27?
- How will ongoing global fertiliser price volatility impact LiquaForce’s seasonal cash flow and grower demand?
- Will upcoming field trial results translate into broader commercial adoption and margin expansion?