How The Calmer Co. Achieved Record $2.4M Revenue and Cut Cash Outflows by 36%
The Calmer Co. International Limited has delivered its strongest quarter yet, with revenue surging 26% to $2.4 million and operating cash outflows dropping to a historic low. Strategic growth across retail, e-commerce, and B2B channels underpins its confident path to breakeven.
- Record quarterly revenue of $2.4 million, up 26% quarter-on-quarter
- Net operating cash outflows reduced by 36% to $596,000
- Strong Australian retail sales via Coles and Woolworths
- US sales boosted by new Amazon product launches
- Secured $700,000 convertible note funding for inventory expansion
A Record-Breaking Quarter
The Calmer Co. International Limited (ASX – CCO) has reported a landmark quarter for Q1 FY26, posting its highest-ever revenue of $2.4 million, a 26% increase from the previous quarter. This growth was complemented by a significant 36% reduction in net operating cash outflows, which fell to $596,000; the lowest in the company's history. Cash receipts from customers reached $2.1 million, underscoring robust demand across multiple sales channels.
Driving Growth Across Multiple Markets
Australian sales led the charge with $1.4 million in revenue, a 30% increase quarter-on-quarter, driven by strong retail performance through major grocery chains Coles and Woolworths. The company’s strategic partnerships and in-store promotions have clearly paid off, with Woolworths completing its first full quarter of trading. Meanwhile, US sales climbed 20% to $936,000, buoyed by new product launches on Amazon USA and expanding subscription orders, which now account for roughly 30% of Amazon sales.
Expanding B2B and Product Diversification
The Calmer Co. also reported a 20% increase in B2B sales to $290,000, supported by growing orders from strategic partners and distributor IMCD’s Network Nutrition. This segment, particularly focused on high-value kava extracts, now represents 12% of total sales and offers a promising long-term ingredient platform with lower direct selling costs. Ready-to-drink products and medicinal formats are gaining traction as well, contributing to a diversified revenue mix.
Financial Discipline and Funding Support
Cost management remains a priority, with staff costs reduced by 14% quarter-on-quarter and advertising spend increased modestly to support new product launches and direct-to-consumer channels. The company ended the quarter with $1.37 million in cash and secured $700,000 in tranche one of a $1.4 million convertible note facility, aimed at funding inventory expansion and growth initiatives. Inventory levels stood at $2 million, positioning The Calmer Co. well for continued growth in Q2 FY26.
Looking Ahead
CEO Zane Yoshida expressed confidence in the company’s trajectory, highlighting the scalability of retail partnerships and the growing potential of the US market. With tranche two of the convertible note funding expected in the coming quarter, The Calmer Co. appears well capitalised to maintain momentum toward sustainable cashflow breakeven. The company’s strategic focus on diversified channels and disciplined financial management is shaping a compelling growth story in the natural wellness sector.
Bottom Line?
With record revenue and improved cash flow, The Calmer Co. is poised to accelerate growth, but investors will watch closely for tranche two funding and sustained market traction.
Questions in the middle?
- Will tranche two of the convertible note funding close on schedule and provide the expected capital boost?
- How will The Calmer Co. sustain growth momentum in the competitive US kava market?
- What impact will related party payments and governance disclosures have on investor confidence?
