• $4.4m in Sales for H1, surpassing full year FY24
• Record quarterly Cash Receipts of $2.6m, +270% of PCP
• Inventory built to $2.2m, supporting factory upgrade

The Calmer Co. International Limited (ASX:CCO) reported a strong financial performance for the three-month period ended 31 December 2024. The company achieved $4.4m in Sales for H1 FY25, surpassing the full year FY24 sales and representing over 300% of H1FY24 sales. The company recorded record quarterly Cash Receipts of $2.6m, an increase of 270% from the prior corresponding period (Q2FY24) and up 9% from Q1. To support the ongoing factory upgrade, the company built inventory by $675k in Q2, bringing the total inventory position to $2.2m (over $4m at sales value). This inventory build, along with a reduction in online advertising spend, allowed the company to cut the net cash used in operations by half, from $284k per month in Q1 to $142k per month in Q2. The company's eCommerce sales in Australia reached a record $523k in October, but the overall profitability of the channel fell due to reduced advertising efficiency. As a result, the company reduced online advertising spend by 57% in November and December, which improved the channel's profitability by over 30% and the Return on Advertising Spend by 45%. In contrast, the company's Australian sales through Coles remained steady, with sales at checkout surpassing online sales in December. The company also made investments in brand development to support the launch of the new Taki Mai range in the USA in the second half of FY25. The company ended the quarter with $2.3m in cash and equivalents, representing more than two quarters of the net cash used in operations, even with the $675k inventory build.

The company is focused on optimizing the balance of retail and online sales in Australia and adding new retail sales distribution points, including the recent launch into Quick-Stop convenience stores in January. The marketing team is also working on refreshing the Taki Mai brand and launching the new Taki Mai flavoured shots and stick packs via Amazon.com in the USA in March, which the company believes will largely underpin its future growth over the coming years.