Murray Cod Australia Boosts Sales 53 Percent, Expands Retail Reach and Cuts Costs

Robust Sales Growth Driven by Retail Expansion

Murray Cod Australia Ltd (ASX:MCA) closed FY26 with a solid performance, reporting a 53% increase in sales volumes to 558.4 tonnes and a 17.9% rise in customer receipts to $13.38 million. The final quarter saw sales volumes hold steady at 147.5 tonnes, roughly matching the previous quarter and representing a 43.8% uplift year-on-year. Receipts of $3.44 million were 9.5% higher than the prior corresponding period, reflecting a mix of product adjustments, introductory pricing, and the return of live-fish sales.

The company’s growth was supported by significant retail wins, including new ranging with Coles across 230 stores and expanded distribution with Woolworths. Woolworths introduced RIVERLI 1kg frozen fillets nationally and fresh Murray Cod in about 130 seafood departments, positioning the product at a premium to barramundi and salmon. These programs are set to roll out progressively during the first half of FY27.

Expanding Foodservice and Wholesale Channels

MCA also broadened its domestic foodservice and distribution footprint, partnering with major players like PFD, Bidfood, Moco Foods, and state-based distributors. This expansion extends MCA’s reach beyond traditional seafood wholesalers, targeting national and multi-site hospitality groups such as Lucas Restaurants, Compass, Carnival Cruise Line, and The Star. Live-fish sales resumed in Sydney and Melbourne markets and commenced in Queensland and Western Australia, with national live-fish sales hitting approximately nine tonnes in June.

Operational Efficiencies and Cost Reduction

In a bid to improve cash flow and operational leverage, MCA implemented a company-wide cost reduction and productivity program. The workforce was trimmed from 99 to 78 full-time equivalents, delivering expected annualised labour savings exceeding $1 million. Notably, these reductions occurred alongside increased harvesting and processing volumes, enabled by better workforce scheduling and flexibility.

Additional cost-saving measures include reviewing feed formulations, optimising harvest planning, consolidating freight loads, and tightening purchasing controls. The company is also exploring automation opportunities in harvesting and processing to boost efficiency without proportional labour cost increases.

Capital Investment Focused on Processing Capacity

MCA’s current farming infrastructure and biomass of approximately 3,784 tonnes provide a solid base for growth, allowing the company to focus capital expenditure on processing and packaging enhancements. Key investments include a refurbished Frigoscandia GC400 spiral freezer for individually quick frozen (IQF) products, modified-atmosphere packaging equipment to extend shelf life, and processing upgrades to improve yields.

The spiral freezer, critical for scaling frozen product formats and inventory management, is expected to be installed by mid-Q2 FY27. These upgrades aim to support the launch of new retail programs and meet anticipated demand across grocery and foodservice channels.

Strengthened Financial Position and Cash Flow Improvement

Following a fully underwritten 1-for-1 entitlement offer, MCA raised approximately $18.6 million before costs, bolstering its cash position to $4.1 million and total available funding to about $20.65 million. The capital raise enabled the repayment of a $10 million overdraft facility, reducing interest expenses.

Operating cash outflows improved 26% to $6.45 million in Q4 FY26 from $8.72 million in the prior quarter. Management is focused on accelerating the conversion of biomass into sales and cash receipts, supported by the build-up of frozen inventory ahead of new retail launches. The company also received a $3.48 million R&D tax incentive in July 2026, further strengthening liquidity.

Outlook Hinges on Execution of Growth Strategy

MCA enters FY27 with a clear strategy to convert its substantial biomass and expanded retail and distribution channels into revenue and positive operating cash flow. The company’s focus will remain on disciplined cost management, operational efficiency, and commissioning of new processing equipment to meet customer demand.

While the timing and impact of new retail programs with Coles and Woolworths remain subject to market conditions and execution risks, MCA’s progress in expanding its sales footprint and improving operational metrics positions it well to capitalise on growth opportunities. The company’s existing farming capacity is sufficient to support higher sales volumes without immediate additional capital investment.