Murray Cod Australia’s retail rollout lands alongside record quarterly sales

Record Sales Meet a Demanding Cash Test

Murray Cod Australia Ltd (ASX:MCA) has delivered its strongest quarterly sales result in the three-year comparison disclosed by the company, selling 175.9 tonnes of fish for net sales of A$3.92 million in Q1 FY27. Volume rose 45.7% from the prior corresponding period and 19.3% from Q4 FY26, while net sales increased 34.2% and 25.7% respectively.

“Q1 FY27 sales volumes increased to 175.9 tonnes, 45.7% higher than Q1 FY26 and 19.3% higher than Q4 FY26.”

The improvement was not simply volume-led. Average realised selling price rose 5.4% from the previous quarter to A$22.29 per kilogram, with MCA saying customer-level pricing strengthened across distributor, foodservice and live-fish accounts. The figure remained 7.9% below Q1 FY26, however, reflecting changes in customer, channel and product mix. Seafood distributors still supplied approximately 64% of revenue, while foodservice sales climbed to about A$438,000 from A$265,000 a year earlier.

The result advances the volume-led strategy outlined in the company’s FY26 retail expansion, but the more important test is whether new distribution produces repeat orders rather than an initial burst of sales.

Woolworths and Coles Add Hundreds of Retail Outlets

Fresh Murray Cod entered approximately 130 Woolworths seafood departments in New South Wales and Victoria during September, while Woolworths expanded RIVERLI chilled 200 gram ranging from 106 to 168 stores. A national RIVERLI frozen 1 kilogram launch is scheduled for 4 November, followed by a RIVERLI chilled 200 gram launch across 231 Coles stores from 16 November.

MCA estimates the Woolworths frozen program could contribute approximately A$1.3 million in wholesale revenue during FY27 and the Coles program approximately A$550,000. Those are estimates based on current ranging and launch assumptions, not booked revenue, and remain dependent on consumer demand, retailer orders, promotional activity and execution. The frozen rollout also faces a practical complication: the company’s spiral freezer has been delayed until mid to late December, so a Melbourne third-party processor has been engaged to freeze and pack product in the interim.

Harvest Growth Offset by August Mortality

“Biomass and Harvesting Strategy”

MCA harvested 192 tonnes during the quarter, up 31% from Q4 FY26 and 110% from Q1 FY26, helping convert its fish inventory into sales. Closing biomass nevertheless fell to 3,513 tonnes from 3,788 tonnes at June, partly because approximately 165 tonnes of fish were lost during elevated mortality in August.

The company said the mortality was concentrated in several isolated Stanbridge ponds, where higher stocking densities and rapid changes in temperature and dissolved oxygen affected less resilient fish. August losses represented approximately 4.76% of month-end biomass against a more typical monthly rate of about 1.1%. Management says corrective action on stocking density, water quality and pond procedures brought mortality back to historical levels in October, although the next quarters will show whether that improvement holds as biomass is converted at a faster pace.

Cost Savings Help, but Debt Discussions Continue

Operational changes are beginning to support the sales push. Griffith processing has moved from one shift operating three days a week in April to six days a week, with a second shift added. Headcount fell from 100 employees at June to 89 at September, monthly Stanbridge energy costs declined from approximately A$120,000 to A$60,000, and revised feed formulations are expected to save about A$450,000 annually.

The cash figures remain less comfortable than the headline funding calculation suggests. MCA reported net operating cash outflow of A$784,000 after receiving a A$3.49 million R&D tax incentive. Excluding that receipt, underlying operating cash outflow was A$4.27 million. Cash stood at A$2.86 million at quarter-end, supplemented by A$16.24 million of undrawn Westpac facilities, but access to those facilities remains subject to their terms and lender approval. The company has begun discussions to extend a A$30 million term loan maturity from December 2027 to 2029; it says the talks are constructive, but no agreement has been reached.

“Market Development and Distribution Expansion”

The immediate commercial question is therefore narrower than the store-count headline: can grocery, foodservice, export and live-fish growth generate enough recurring receipts and margin improvement to reduce cash usage before the next major financing milestone? The answer will depend on actual retailer reorder rates, processing execution, farm performance and the pace at which MCA converts its remaining biomass into saleable inventory.