The Calmer Co (ASX – CCO) reported an impressive $8 million revenue for FY25, marking 86% year-over-year growth and positioning itself as a global leader in the emerging kava market. With expanding retail presence and strong US sales, the company is on track to break even in 2026.
- FY25 revenue hits $8 million, up 86% year-over-year
- Q1 FY26 sales record of $2.4 million, 26% quarterly growth
- Retail sales up 68%, boosted by Coles and Woolworths listings
- US sales grow 21%, driven by e-commerce and wholesale channels
- Wholesale channel sets record sales, expanding market share
Strong Growth in a Nascent Market
The Calmer Co, a pioneer in the global kava industry, has delivered a standout performance in FY25 with $8 million in revenue, representing an 86% increase over the previous year. This growth nearly quintupled the company’s revenue in just two years, underscoring the rising consumer demand for natural relaxation and alcohol alternatives.
Kava, a traditional root extract known for its calming effects, is gaining traction worldwide as consumers seek healthier lifestyle options. The global kava root extract market is projected to grow from USD 1.6 billion in 2024 to USD 5.6 billion by 2033, according to IMARC Group, reflecting a compound annual growth rate of over 14%. The Calmer Co is well positioned to capitalize on this trend with its vertically integrated supply chain and innovative product formats.
Retail Expansion and US Market Momentum
Retail sales surged 68% quarter-on-quarter to $1.15 million, driven by expanded listings at major Australian supermarkets Coles and Woolworths. These partnerships not only boost sales but also enhance brand visibility and consumer acceptance in Western markets, a critical step for broader adoption.
Meanwhile, the US market continues to be a key growth driver, with sales up 21% to $935,000 in Q1 FY26. Growth in the US is fueled by both e-commerce and wholesale channels, supported by the launch of new flavoured kava shots and high-concentration extracts. The wholesale channel itself set a new sales record of $314,000 in September, accounting for 13% of total sales and highlighting expanding demand from retail partners.
On Track for Profitability
The Calmer Co’s strong quarterly performance culminated in a record $2.4 million revenue in Q1 FY26, a 26% increase from the previous quarter. This momentum has pushed the company’s annualised sales run rate beyond $10 million, bringing breakeven within reach in 2026. The company’s focus on high-margin direct-to-consumer sales, alongside scalable retail and wholesale channels, underpins its path to profitability.
CEO Zane Yoshida highlighted the company’s strategic pillars, including regional sourcing from the Pacific Islands, innovative CO2 extraction methods, and blockchain traceability, which collectively create a differentiated product offering. The leadership team’s deep expertise across FMCG, e-commerce, and supply chain management further strengthens The Calmer Co’s competitive position.
Looking Ahead
As The Calmer Co continues to expand its footprint in established and emerging markets, the company’s ability to sustain rapid growth while managing costs will be critical. The evolving consumer preference for natural, effective alternatives to alcohol and pharmaceuticals presents a significant opportunity, but also invites competition. Investors will be watching closely to see if The Calmer Co can maintain its momentum and deliver on its profitability promise in the coming year.
Bottom Line?
With $8 million in revenue and breakeven in sight, The Calmer Co is poised to lead the global kava market’s next growth phase.
Questions in the middle?
- Can The Calmer Co sustain its rapid revenue growth amid increasing competition?
- What are the company’s plans to expand further into the US and other international markets?
- How will cost management and margin pressures impact the timeline to profitability?