Pic: Rare Foods Australia
Food & Agriculture
Rare Foods Australia is continuing to successfully blend innovation with sustainability to achieve more record sales and revenue while pursuing expansion beyond its traditional Asian markets to Europe, the US and Middle East.
The company’s March Quarterly Report shows post Chinese New Year sales and revenue of ranched wild greenlip and Wild Origin abalone was a record 19.2 tonnes.
This was underpinned by sales of 17.2 tonnes of Ranched Wild Greenlip along with two tonnes of Wild Origin abalone (volume up 8% and revenue up 12% on the comparative FY22 Q3 period), bringing revenue to $0.99m for the period.
Significantly, Rare Foods Australia’s (ASX:RFA) year to date sales, plus forward orders for its premium ranched wild greenlip abalone, now equate to 109% of FY22 total sales.
The company’s General Manager Sales and Marketing is currently at the Global Seafood Expo in Barcelona targeting markets in Europe and the Middle East, and was last month at the Boston Seafood Show where interest in abalone grown in the pristine waters of WA generated healthy wholesales inquires.
RFA is now pursuing this international interest to generate more demand for its master distributors, who in turn supply large volumes of product to wholesalers servicing upmarket restaurants.
At the same time the company is maturing its Australian-leading ocean cellared wine project, showcasing its innovations to tourists visiting its Ocean Pantry retail outlet and café, and pursuing other strategic opportunities in the clean and green southwest corner of WA.
All this makes the company one to watch for investors, especially those wanting to add some ESG flavour to their portfolio.
RFA’s growth strategy is being supported by its core business – its ranched greenlip abalone harvest grown on globally unique artificial reefs, or ABITATs. During the Quarter the ranched harvest increased to support the forward order book, with 24.3 tonnes harvested during the quarter and the year to date figure at 58.9 tonnes.
The steady increase in processing capacity allowed the company to process a record aggregate 35.8 tonnes of Ranched Wild, Wild Origin and Farmed abalone product for the quarter.
Wild Origin abalone, which is roei abalone harvested by local quota holders then processed and branded by RFA, generated $95k in revenue for the quarter and $386k year to date (YTD).
Third-party abalone sales generated an additional $77k in revenue during quarter ($108.9k YTD).
Continuing the growth theme, RFA’s Ranched Wild Greenlip abalone bi-annual biomass assessment, concluded in January 2023, confirmed the biomass fair value at 31 December 2022 was $8.8 million, a 16% increase over the past six-month period.
This was largely attributed to the average sales price increasing 9%, along with a 23% reduction in the average cost to harvest, process and distribute the product.
The biomass assessment also verified the improving maturity of the Flinders Bay reef, with average abalone size reaching a record of 224 grams - a 4% increase on the comparative FY22 period.
Not just relying on the natural abundance of the reef, the company is continuing to refine harvest routines to ensure larger product is harvested at the optimum time and it’s constantly working to improve juvenile abalone survival rates
But RFA isn’t just about abalone. The company harvested 500 bottles of its ocean cellared wine, which is matured naturally by the currents on its 413ha ocean lease, with media interest and sales growing.
The Company achieved its first full quarter of retail trading, while collecting customer data to refine plans to continually improve the retail model. This is focused on tours of the specialised facilities to the thousands of visitors to WA’s South-West each month, and selling abalone and other rare products from the famed foodie region and the café. The Ocean Pantry generated an impressive $31k in sales during its first full quarter and $51k YTD.
Meanwhile its continuing to seek businesses and assets aligned with its premium and sustainable brand for merger and acquisition opportunities.
This article was developed in collaboration with Rare Foods Australia, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Food & Agriculture
Food & Agriculture
Food & Agriculture
