Murray Cod Australia posted a $5.37 million FY2026 loss after the prior year’s $8.56 million profit, despite higher fish biomass and improved fourth-quarter performance. The company ended the year with $4.14 million in cash after raising capital, while operating cash outflow reached $26.57 million and a Westpac interest-cover covenant was breached and waived.
- $5.37m net loss versus $8.56m prior-year profit
- Fish sales rose to $13.29m from $10.61m
- Murray cod biomass increased to 3,834 tonnes
- $26.57m operating cash outflow
- Westpac covenant breach waived at year-end
Loss Returns Despite Higher Fish Sales
Murray Cod Australia Ltd (ASX:MCA) swung from an $8.56 million profit to a $5.37 million net loss in FY2026, putting the company’s growth strategy under a sharper financial test. Fish sales increased to $13.29 million from $10.61 million, but the result remained heavily shaped by biological-asset accounting and a large operating cash deficit.
The company said revenue was broadly flat for the first nine months before improving in the fourth quarter. Its reported revenue from continuing operations was $13.49 million, while a separate six-year performance table includes biological gains and records total revenue of $43.03 million. The distinction matters: fish sales are cash-generating revenue, whereas the biological-asset gain reflects the accounting value assigned to fish still in production.
Biomass Reaches 3,834 Tonnes
Murray cod biomass, net of provision, rose to 3,834 tonnes from 2,659 tonnes a year earlier. The group harvested 623 tonnes of Murray cod, Golden perch and Silver perch during the year, compared with 387 tonnes in FY2025, while fingerling sales fell sharply to 98,400 from 1.39 million.
Biological assets were carried at $84.15 million at year-end, including a $29.54 million gain from physical changes in fair value. The valuation is a Level 3 measurement, relying on internal estimates of biomass, fish weights and expected prices. The reported value per kilogram fell from $23.82 to $20.77 during the year, and the company carried a $4.37 million provision against biological assets, including unaccounted fish and estimated “black loss”.
Capital Raise Eases Immediate Funding Pressure
Murray Cod Australia issued 141.8 million shares during the year through an institutional placement and the institutional and retail components of a 1-for-1 entitlement offer. The company said the capital raising generated $17.5 million after costs, allowing it to repay a $10 million overdraft facility and finish the year with $4.14 million in cash.
That stronger closing cash position did not translate into positive operating cash flow. Net cash used in operations widened to $26.57 million from $16.91 million, as inventory and biological assets increased by $16.60 million. Net debt fell to $34.03 million from $41.23 million, and gearing declined to 21% from 29%, but the balance sheet remains reliant on converting fish biomass into sales and cash.
Westpac Covenant Breach Adds Financing Risk
The group disclosed that it breached the 3.5-times interest-cover covenant attached to its Westpac facilities at 30 June 2026. Westpac waived the requirement for that date, allowing the related borrowings to continue being classified as non-current liabilities. Total borrowings stood at $26.64 million, with a further $20.2 million of unused facility capacity reported at year-end.
The company’s stated plan is to expand domestic sales channels, invest in equipment for fresh and frozen products and build the Aquna brand. It also received $3.43 million from the FY2025 R&D tax incentive in July 2026, after the amount had not been accrued at year-end. The next test is less about the size of the pond inventory than the speed and margin at which that inventory can be harvested, sold and converted into operating cash.
Bottom Line?
The capital raise has bought Murray Cod Australia time, but FY2027 needs to show that rising biomass can become recurring sales and operating cash before funding pressure returns.
Questions in the middle?
- Can the higher Stanbridge biomass be converted into sustained sales without another material cash drain?
- Will the company remain compliant with Westpac’s interest-cover covenant once the waiver expires?
- How much of the reported biological-asset value will ultimately be realised at current market prices after provisions and harvest costs?