The Calmer Co (ASX: CCO) delivered its strongest monthly sales result on record in March as growth in the US and wholesale channels continued to reshape the group’s revenue mix.
March revenue reached $1.2 million, helping lift total global sales for the March quarter to $1.96m.
US sales rose 11% quarter-on-quarter to $1.15m to now account for 59% of group revenue.
Wholesale revenue increased 78% to $645,783, representing 33% of group revenue and marking the channel’s strongest quarterly result.
US Growth Leads Sales Mix
The US remains The Calmer Co’s largest and fastest-growing market across ecommerce and wholesale channels, with growth in the market driven by continued momentum on Amazon Marketplace and expansion of the wholesale channel.
Wholesale growth was supported by increased activity across bulk powder and carbon dioxide extract formats, with the company citing strong repeat ordering from strategic partners including IMCD and US-based beverage manufacturers.
Retail distribution in the US has not yet commenced, leaving the group with a further growth channel still to activate.
Wholesale revenue reached $645,783 for the quarter, up from $362,000 in the December quarter, approximately 99% of which were generated in the US.
The channel is central to The Calmer Co’s strategy to improve margins, scale volumes and build a more predictable revenue base.
E-commerce and Retail Support Broader Base
E-commerce revenue totalled $691,755 for the quarter—representing 36% of total group revenue—with Amazon USA the primary contributor, generating $496,687 in sales for the quarter across Fiji Kava and Taki Mai products.
Direct-to-consumer revenue totalled $195,068, supported by ongoing digital marketing, content development, website optimisation, and an expanded product offering across Australian and US platforms.
Retail revenue was $628,547 for the quarter, with the 150g and 50g instant kava products ranking number one and number three respectively in the Coles stress subcategory despite seasonal moderation and ranging changes.
Cash receipts totalled $1.63m, while inventory including prepaid stock increased to $1.83m to support anticipated demand, and the company ended the quarter with $1.51m in cash following completion of a $1.6m capital raise.
Advertising and marketing costs reduced by 30% quarter-on-quarter as the business shifted to more targeted spending, while staff costs fell by a further 5.5% following a 4% reduction in the previous quarter.
Focus Turns to Operating Leverage
Founder and chief executive officer Zane Yoshida said the March quarter marked an important step as the business transitions toward a more scalable and higher-quality revenue base.
“While revenue for the quarter remained broadly in line with Q2, the underlying mix of the business continues to strengthen,” Mr Yoshida said.
“During the quarter, we made deliberate investments in inventory and working capital to support this growth, while continuing to reduce operating costs—this reflects our ongoing focus on improving operating leverage as the business scales.”
“We saw strong growth in our US wholesale and B2B channels, […] which reflects increasing partner engagement and repeat ordering across both traditional kava formats and our emerging extract portfolio.”
The combination of a strengthened balance sheet, inventory positioned for demand, and continued cost reduction gives The Calmer Co plenty of confidence entering the June quarter as it works toward cash flow breakeven.
