Rare Foods Australia serves up more tasty results

Rare Foods Australia is on a roll that’s fast building momentum as it reports more record sales and revenue while also growing the business and boosting its sustainability score.

The company based in the southwest corner of WA has today reported another record sales and revenue quarter, with 24 tonnes of abalone product sold, 5 per cent up on Q1 2023. Revenue was $1.4 million, 10% higher than the same period last year.

And as Rare Foods Australia (ASX:RFA) looks ahead to an exciting FY24, its forward orders for abalone are already 84% of last year’s sales at 80 tonnes.

At the same time it’s signed an agreement with a leading French company Winereef International to trial patented bulk production methods in ocean cellaring, while investing in due diligence on opportunities to further scale up the core business.

Core strength

Also up for RFA is its biomass valuation, at $8.4M in Q1 FY24. That’s an 11% increase on the previous year. The uplift in this important metric for the agribusiness was underpinned by sales price lifts and improved operational efficiencies on its globally unique abalone ranch.

The average price for RFA’s abalone products was $58.1 per kg for the quarter, with its Marine Stewardship (MSC) accredited ranched Greenlip abalone achieving $58.7 per kg, 6% higher than FY23.

This premium product comprises the bulk of RFA’s sales and the company now fulfills about 20% of global supply of the highly sought-after seafood.

The company is also building its share in valuable roei and brownlip abalone export markets thanks to its mutually beneficial partnerships it has with local quota holders and processing capacity.

More undersea treasures

The news of more record sales and revenue comes just two weeks after the company announced its agreement with Winereef International to undertake a trial of its patented ocean cellaring process.

The trial is expected to produce 13,000 bottles and will start in early 2024.

This will keep the ocean matured wine momentum rolling after 2,300 “ocean signature” bottles are scheduled for harvest next month. These are wines produced by strategic partners Glenarty Road and Edwards wineries and expertly matured by the ocean currents, along with constant temperature, pressure and light, on RFA’s ocean lease off the local Margaret River region.

The company has engaged highly experienced beverage marketer Simon Hanley as Sales and Marketing Manager, Ocean Cellared Products, to amplify the story of ocean cellaring – and the depth of flavour it adds to the wine.

Investing in expansion

Also during the quarter RFA continued its work with Yumbah Aquaculture and the local indigenous group ETNTAC to progress an investment ready aquaculture precinct in Esperance, on land that RFA and Yumbah have an option to acquire.

Meanwhile the company is continuing due diligence on other premium and sustainable products from WA’s pristine South-West that have strong potential for synergies and to expedite its growth.

ESG boost

Another exciting development is that RFA’s licenced area at Esperance will be used by Canopy Blue, a business pioneering hyperscale offshore seaweed cultivation to sequester CO2, restore the oceans and deliver a carbon neutral replacement for fossil fuels.

While RFA and its innovations are innately sustainable, this project demonstrates its commitment to also having a regenerative and positive impact in its operations.

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.