The Calmer Co hits high note with record $2.44m quarterly revenue

• US ingredient orders lift wholesale contribution
• Supermarket growth supports a new product range
• Cash outflow narrows as breakeven remains a goal

Special Report: The Calmer Co has delivered record quarterly revenue of $2.44m, up 42% on the previous quarter, as US wholesale orders and Australian supermarket sales strengthened.

The September-quarter result compares with $1.72m in the June quarter and reflects growth across two parts of the kava business.

Wholesale and business-to-business (B2B) ingredient sales at The Calmer Co International (ASX:CCO) rose to $831,569 from $305,740, while retail revenue increased 25% to $975,037.

Retail remained the largest channel, accounting for about 40% of group revenue, with wholesale contributing approximately 34% and e-commerce 26%.

The US and Australia each generated about 49% of group revenue, with US sales led by wholesale and e-commerce.

US ingredients change the sales mix

About 91% of wholesale revenue came from the US, where beverage manufacturers and other business customers placed repeat orders for traditional kava ingredients and high-potency CO₂ extracts.

Wholesale revenue for the quarter also reflected the timing of customer orders.

Turning the growing customer pipeline into more recurring orders remains a management priority.

Extracts accounted for about 26% of group revenue, up from 16% in the previous quarter, with around 95% of extract sales generated in the US.

“Wholesale and B2B ingredients revenue increased to $832,000 from $306,000 in the prior quarter, supported by demand for premium kava ingredients, including CO₂ extracts, particularly in the United States,” chief executive officer Zane Yoshida said.

“Scaling this higher-value channel remains central to our strategy to improve Group margins and build a more predictable revenue base.”

Kava powder still contributed about 67% of group sales.

Ready-to-drink formats, including Taki Mai kava shots sold through Amazon USA and direct channels, increased their share from 2% to about 5%.

E-commerce revenue totalled $636,255, including $461,003 through Amazon USA and $175,252 from direct-to-consumer sales.

Supermarket growth and a new format ahead

Australian revenue rose 24% to $1.20m, supported by a 27% increase in Coles sales and 33% growth through Woolworths.

CCO is preparing to introduce its Fiji Kava FZZR flavoured effervescent range into Coles during Q2 FY27.

FZZR combines powders and effervescent granules in a format the company describes as suitable for dissolving in water, chewing or consuming directly.

The new range would broaden its offering alongside established instant kava powders.

Management is also focused on retaining the benefits of recently implemented retail price increases.

In the US, physical retail distribution has yet to begin.

A confirmed brokerage agreement is intended to help establish an initial presence in the market, adding a prospective channel alongside existing wholesale and e-commerce sales.

Advertising and marketing operating expenses fell 56% to $112,000, equivalent to about 5% of revenue.

Net operating cash outflow improved 6% to $755,000, while customer cash receipts totalled $1.79m.

Cash stood at $953,000 at quarter end with the company reporting having 1.3 quarters of funding available at the quarter’s operating cash outflow rate.

CCO also secured a FJ$250,000 ($157,900) inventory financing facility that will be available from Q2 FY27.

The company is working towards quarterly cash flow breakeven, with supply-chain efficiency, gross margins and operating leverage among its priorities for FY27.

This article was developed in collaboration with The Calmer Co, 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.

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