• Improved gross margins, reduced operating losses, and early momentum in higher margin channels
• Retail channel performance improved, with Coles sales increasing by 35% and Amazon USA revenue up 20%
• Wholesale revenue increased by 49%, underpinned by orders from IMCD and Two Valley

The Calmer Co. continued to make progress in Q3 FY25 towards its objective of sustainable and profitable growth, with improved gross margins, reduced operating losses, and early momentum in higher margin channels. While revenue for the quarter was $1.8 million, down 12.8% vs Q2 FY25, due to reduced spend in lower margin sales channels, the business delivered a 61% increase in gross profit after promotions to $388k. This reflects the strategic repositioning of the sales mix and disciplined cost management across the business. Key achievements during the quarter include gross margin expansion, a 31% reduction in operating loss, a 35% increase in Coles sales, a 20% increase in Amazon USA revenue, and a 49% increase in wholesale revenue. The Group ended the quarter with cash on hand of $1.64 million, with a further $2.2 million in capital expected to be received in May to support ongoing growth initiatives.

The company expects to see continued sales growth and a focus on higher margin channels, leading to improved operating cashflows over the coming quarters.

The company is well-positioned for a strong finish to the financial year and continued progress toward breakeven, with new product launches in the US market, streamlined operations through Acuity, and a sharpened execution strategy across all markets.