Calmer Co. Cuts Costs 27% and Boosts August Sales 17% to $838k
The Calmer Co. reports a significant operational turnaround in H2 FY25, with sales momentum building through July and August, driven by cost reductions and new product launches in the US market.
- 27% reduction in expenses in H2 FY25
- 33% improvement in operating loss in H2 FY25
- August sales up 17% month-on-month to $838k
- Amazon USA sales grow 12% month-on-month with new Taki Mai kava shots
- Focus on scaling US Amazon sales, Australian retail, and US B2B ingredient expansion
Operational Turnaround Gains Traction
The Calmer Co. International Limited (ASX, CCO) has revealed encouraging signs of recovery and growth in the second half of its 2025 financial year. Following a strategic pivot to a leaner cost structure, the company achieved a 27% reduction in expenses during H2 FY25, trimming costs from $4.43 million in H1 to $3.22 million. This was largely driven by an $800,000 cut in advertising spend and streamlined personnel costs after migrating to the Acuity eCommerce platform.
These cost efficiencies translated into a 33% improvement in operating loss, narrowing it to $1.56 million in H2 from $2.36 million in H1. The company also benefited from retail price increases implemented late in Q4 at major Australian supermarkets Coles and Woolworths, which helped bolster margins.
Sales Momentum Builds Across Channels
July and August sales figures underscore the operational turnaround’s positive impact. July sales rose to $715,000, up from $690,000 in June, marking the fourth consecutive month of growth under the new cost base. August sales surged 17% month-on-month to $838,000, pushing the company’s annualised sales run-rate beyond $10 million.
On the international front, Amazon USA sales climbed 12% from AU$192,000 in July to AU$214,000 in August. This growth was fuelled by the launch of the new Taki Mai flavoured kava shots, which contributed to the company capturing a 7% share of the US kava category on Amazon, a notable increase from 3% the previous year. Subscriptions now account for 28% of sales, while organic search visibility has soared 674% year-on-year, indicating strong brand traction.
Strategic Outlook for FY26
CEO Zane Yoshida expressed confidence in the company’s trajectory, highlighting the benefits of the leaner operational model and product innovation. The company plans to scale Amazon USA sales through continued product development and digital marketing efforts. Additionally, it aims to accelerate retail sales velocity in Australian supermarkets and expand its B2B ingredient sales into the US health and wellness sector.
With these initiatives, The Calmer Co. is positioning itself to sustain growth while maintaining tight cost controls and reducing cash burn, moving steadily toward break-even profitability.
Bottom Line?
The Calmer Co.’s leaner model and US product innovation set the stage for a pivotal FY26 growth phase.
Questions in the middle?
- Can The Calmer Co. sustain its accelerated sales growth beyond initial product launches?
- How will competitive dynamics in the US kava market impact the company’s Amazon sales momentum?
- What are the risks and timelines associated with expanding B2B ingredient sales in the US wellness sector?
