The Calmer Co finds growth in US wholesale and supermarket shelves

Record revenue arrives with only 1.3 quarters of funding

The Calmer Co. International Limited (ASX:CCO) delivered its strongest quarter on record, but the headline growth came with a familiar balance-sheet constraint. Revenue reached A$2.44 million in the three months to 30 September, up 42% from Q4 FY26, while the Appendix 4C showed just 1.3 quarters of estimated funding at quarter end.

Cash stood at A$953,000 after the company completed a A$1.21 million equity raising during the quarter. Net operating cash outflow improved 6% to A$755,000, but the company had no unused finance facilities recorded in the Appendix 4C. It said its ability to meet ongoing funding requirements remains subject to completing further funding initiatives and maintaining operating performance.

US wholesale orders reshape the revenue mix

The biggest change was in wholesale and B2B, where revenue climbed to A$831,569 from A$305,740 in the prior quarter. About 91% of wholesale sales came from the United States, reflecting demand from beverage manufacturers and other B2B partners for traditional kava ingredients and higher-potency CO₂ extracts.

Extracts accounted for about 26% of group revenue, up from 16% in Q4 FY26, with approximately 95% of extract sales tied to US B2B ingredient orders. The company describes the format as higher value than powder and central to its plans to improve margins and make revenue more predictable, although the filing also cautions that the quarterly wholesale result reflected customer ordering patterns.

The US contributed A$1.20 million, or 49% of group revenue, while e-commerce generated A$636,255. Amazon USA accounted for A$461,003 of that e-commerce total. The company has confirmed a US brokerage agreement to help establish an initial retail footprint, but US retail distribution had not yet commenced during the quarter.

Coles and Woolworths provide the consumer base

Australian retail revenue rose 25% quarter-on-quarter to A$975,037, making it the group’s largest channel at roughly 40% of sales. Coles revenue increased 27% and Woolworths revenue rose 33%, extending the supermarket traction that had already supported the company’s mainstream retail push. The earlier Coles FZZR product order is now set to feed into the planned Q2 launch of the flavoured effervescent range.

Australian revenue totalled A$1.20 million, also about 49% of the group total. Fiji Kava 150g and 50g Instant Kava products remained leading products in the stress category, while the FZZR range is planned for introduction in Coles during Q2 FY27. The company said it will focus on preserving the benefits of recent price increases while broadening its product range.

Capital raised, but further funding remains in play

The quarter’s cash position was supported by the equity raise, with A$1.09 million of net financing cash flow after A$119,000 of borrowings were repaid. The company is still progressing placement of the remaining entitlement offer shortfall, following the September rights issue, and is exploring additional working-capital funding.

It has secured an FJ$250,000 inventory financing facility from Fiji Investment Corporation, available from Q2 FY27. Inventory, including prepaid amounts, stood at A$1.5 million at quarter end. That stock is intended to support wholesale, B2B and retail demand, but it also helps explain why cash conversion remains central to the next phase of the growth story.

The next test is converting growth into cash

The Calmer Co. reduced advertising and marketing expenditure by 56% quarter-on-quarter to A$112,000 in its financial overview, while staff costs fell to A$324,000. Management’s stated priorities are to improve gross margins, strengthen supply-chain efficiency and increase operating leverage as it works towards quarterly cash-flow breakeven.

That target now depends on more than another record sales number. Q2 will show whether the wholesale surge can translate into recurring orders rather than quarterly timing, whether the new Coles range adds meaningful volume, and whether the additional financing arrangements arrive quickly enough to keep expansion from outrunning the company’s cash resources.