Me Today reported a NZ$2.66 million FY26 profit, but the result was dominated by a NZ$4.12 million gain from losing control of King Honey. The remaining business grew revenue and improved its operating loss, yet continued to consume cash and will rely on October warrant funding.
- NZ$2.66m reported profit driven by King Honey receivership gain
- Gross revenue rose 36% to NZ$7.96m, ahead of guidance
- Continuing operations posted a NZ$1.46m pre-tax loss
- Cash increased to NZ$1.83m while operating cash outflow reached NZ$1.31m
- Founding shareholder entities committed at least NZ$1.59m through October warrants
King Honey gain drives headline profit
Me Today Limited (NZX:MEE) has returned to reported profitability, but the headline number comes with a large accounting asterisk. The health and wellbeing company recorded a NZ$2.66 million profit after tax for the year ended 30 June 2026, including a NZ$4.12 million gain recognised when receivership removed King Honey’s net liabilities from the Group.
Continuing operations remained loss-making, with a NZ$1.46 million loss before tax. The operating EBITDA loss narrowed to NZ$1.23 million from NZ$2.14 million, while gross revenue before customer marketing services rose 36% to NZ$7.96 million, ahead of the NZ$7.4 million guidance provided in May. Net revenue was NZ$6.53 million.
Brand sales and China licensing provide growth
The Me Today brand and agency business generated NZ$6.47 million of revenue, while China licence fees contributed NZ$1.11 million, up from NZ$445,000 a year earlier. Other brands supplied a further NZ$380,000. The company said the licence fee increase reflected a move to a revenue-based fee structure.
New Zealand remains the core market. Me Today said scan data showed retail sales through its largest New Zealand retail partner were 85% higher in the 12 months to 19 August 2026 than in the preceding 12-month period, following a new store planogram introduced in March. The company launched 15 products during FY26 and plans another 20 during the remainder of calendar 2026.
Internationally, Me Today has begun an exclusive distribution rollout across Singapore, Malaysia, Thailand and Vietnam, with Singapore first and an opening order covering 10 products fulfilled between June and August. In China, the licensing partner increased its ownership of the Me Today China trademark to 40% after achieving sales targets on two occasions, leaving Me Today with 60% ownership of the subsidiary.
Balance sheet resets, but cash burn remains
The King Honey receivership substantially changed Me Today’s financial position. Net assets moved from a NZ$2.34 million deficit at 30 June 2025 to NZ$2.51 million of net assets, while cash rose to NZ$1.83 million from NZ$1.26 million. Borrowings fell from NZ$15.76 million to NZ$2.25 million after the King Honey debt was removed from the consolidated balance sheet.
That improvement does not amount to self-funded profitability. Continuing operations used NZ$1.31 million in operating cash during the year, compared with NZ$937,000 in the prior period. The board said the going-concern assessment depends on current cash resources, continuing BNZ support and committed shareholder funding, while acknowledging that forecasts remain uncertain.
October warrants are the immediate funding test
Entities associated with chairman Grant Baker and chief executive Stephen Sinclair have irrevocably committed to exercise a minimum number of Series 1 warrants during October, securing at least NZ$1.59 million of new capital. The warrants are exercisable at NZ$0.06 per share between 1 October and 30 October 2026.
The funding is intended to support product development, marketing and international growth. The more difficult test comes afterwards: whether the enlarged Me Today brand can convert sales growth, product launches and licensing income into a narrower cash deficit before another funding decision is required.
Bottom Line?
The King Honey exit has repaired Me Today’s balance sheet, but October’s warrant funding only buys time unless continuing operations move towards cash breakeven.
Questions in the middle?
- Can Me Today reduce its NZ$1.31 million operating cash outflow as international distribution expands?
- Will the Singapore launch and subsequent Southeast Asian registrations produce material revenue within the stated rollout timetable?
- How much of the committed warrant capital will be absorbed by growth investment before the core brand reaches EBITDA breakeven?