Half Yearly Report and Accounts
| Stock | The Calmer Co International Ltd (CCO.ASX) |
|---|---|
| Release Time | 28 Feb 2025, 3:19 p.m. |
| Price Sensitive | Yes |
The Calmer Co International Ltd Reports Half Yearly Results
- Revenue up 206% to AU$4.36M
- Net loss of AU$2.35M due to inventory buildup and increased ad spend
- eCommerce sales now 70% of total revenue, including strong growth on Amazon USA
The Calmer Co. is a rapidly growing beverage company seizing global opportunities in kava and other natural products that promote relaxation, alleviate anxiety and improve sleep quality. The first half of FY25 has been a transformative period for the company, marked by exceptional revenue growth, strong operational performance, and strategic expansion efforts. Revenue for H1 FY25 was AU$4.36M, a 206% increase year-over-year. However, the company reported a net loss of AU$2.35M, impacted by inventory buildup and increased ad spend on Australian eCommerce. Marketing and advertising costs increased due to the ramp-up in online ad spending for eCommerce in Australia, aimed at driving new customer acquisition during the period. This resulted in increasing the eCommerce customer database by 600% to greater than 50,000 customers. Employment costs also increased due to expanded headcount in the marketing and operations team to support online ads, content creation and fulfilment of increased demand. eCommerce sales accounted for 70% of total revenue, including strong growth on Amazon USA. Organic demand for Kava on Amazon USA is forecasted to grow by 44% for FY25. Retail sales through Coles Australia also expanded, with Taki Mai Kava Shots now available in 500+ stores. The company remains on track to drive consistent year-on-year growth with a key focus on strategic channels in the USA, including the launch of Taki Mai flavoured RTD shots and stick packs in April 2025.
The company is forecasting 44% growth in organic demand for Kava on Amazon USA for FY25.
The company remains on track to drive consistent year-on-year growth with a key focus on strategic channels in the USA, including the launch of Taki Mai flavoured RTD shots and stick packs in April 2025. The company is also commissioning an upgrade to its Navua facility in Fiji by April 2025, which is expected to improve COGS by 12% and overall margins.