The Calmer Co has reported a robust 26% increase in quarterly sales, driven by strong growth in Australia and the US, alongside a significant 39% reduction in cash used in operations, signaling clear progress toward profitability.
- 26% quarterly sales growth to $2.4 million
- 30% sales increase in Australia, 21% in the US
- Retail sales jump 68%, wholesale up 30%
- Net cash used in operations down 39% to $597k
- Annualised sales run rate exceeds $10 million
Strong Global Sales Momentum
The Calmer Co has delivered an impressive start to fiscal 2026, posting a 26% rise in total sales to $2.4 million for the first quarter. This growth was broad-based, with Australia and the United States both contributing significantly to the uplift. Australian sales surged 30%, buoyed by expanded listings and sustained order growth from major retailers Coles and Woolworths. Meanwhile, US sales climbed 21%, driven by a successful product launch and increased demand on the Amazon Marketplace.
Retail and Wholesale Channels Drive Expansion
Retail sales were a standout performer, soaring 68% quarter-on-quarter to $1.15 million. This was largely due to Coles expanding their product listings and Woolworths delivering a full quarter of sales. The wholesale channel also set new records, with revenues up 30% to $314,000, reflecting strong repeat orders and growing partnerships, including with IMCD Network Nutrition and US resellers. Innovative products like Kavaton and high-concentration CO₂ extracts are gaining traction, further strengthening The Calmer Co’s market position.
Operational Efficiency and Cash Flow Improvement
Alongside sales growth, The Calmer Co made significant strides in operational efficiency. Net cash used in operations fell by 39% to $597,000, a notable improvement that includes ongoing costs related to the US product launch and inventory build. The company’s cash position was bolstered by a $700,000 tranche from a $1.4 million convertible note facility, supporting inventory and growth initiatives. Inventory on hand stood at $2 million at quarter-end, positioning the company well for continued expansion.
Path to Profitability
With an annualised sales run rate now exceeding $10 million, The Calmer Co is making tangible progress toward breaking even. CEO Zane Yoshida highlighted the accelerating global demand for kava as a functional ingredient and the company’s strong foothold in both retail and wholesale channels. The combination of innovative product offerings, strategic partnerships, and disciplined cost management underpins a clear trajectory toward sustained growth and profitability.
Looking Ahead
The company plans to maintain momentum with ongoing product innovation and expansion in key markets. Investors will be watching closely as The Calmer Co prepares to host its Q1 FY26 results webinar, offering further insights into its growth strategy and operational progress.
Bottom Line?
The Calmer Co’s accelerating sales and improved cash flow mark a pivotal step toward profitability, but sustaining this momentum will be key.
Questions in the middle?
- Can The Calmer Co sustain its rapid retail and wholesale sales growth in coming quarters?
- What impact will the convertible note funding have on the company’s future capital structure?
- How will ongoing US market investments affect cash flow and profitability timelines?