Calmer Co delivers record quarterly revenue as wholesale and retail growth strengthen its FY27 outlook

The Calmer Co's September-quarter results show encouraging progress across its two largest growth channels: Australian retail and international wholesale ingredients. Revenue reached a record $2.44 million, up 42% on the previous quarter, supported by increasing demand for kava products across mainstream supermarkets and US business customers.

The result provides further evidence that the company's strategy of combining branded consumer products with a growing ingredients business is gaining traction.

Key numbers

All amounts are Australian dollars unless stated otherwise. Comparisons are with Q4 FY26, the quarter ended 30 June 2026.

Customer cash receipts totalled $1.785 million, and the company received $1.209 million in equity funding during the quarter.

Growth and operating progress

Wholesale growth is the most significant development. Revenue in this channel increased almost threefold, with approximately 91% generated in the United States. Repeat orders from beverage manufacturers and other business customers demonstrate continued commercial demand for traditional kava ingredients and premium CO2 extracts.

Wholesale now contributes approximately 34% of group revenue and accounted for nearly three quarters of the quarter on quarter revenue increase, giving the company a substantial additional source of sales alongside its consumer brands.

Retail is providing an increasingly substantial foundation. Revenue approached $1 million, with sales increasing 27% at Coles and 33% at Woolworths. Retail remained the largest channel at approximately 40% of group revenue. This follows 24% retail growth in the June quarter, demonstrating consecutive quarters of progress. Recent price increases also provide an opportunity to improve margins as their benefits flow through.

The revenue mix is moving toward higher-value products. Kava extracts increased from approximately 16% to 26% of group revenue, a rise of 10 percentage points. Around 95% of extract sales came from US B2B ingredient orders. This supports the strategy of expanding into higher value ingredients, with potential benefits for margins and earnings as the channel scales. The quarterly documents do not quantify gross-margin improvement, so this remains an opportunity for future results.

Cost discipline is supporting the growth strategy. Management reported advertising and marketing operating expenditure of $112,000, down 56% quarter-on-quarter, while staff costs declined approximately 8%. These reductions accompanied the substantial increase in revenue, providing an encouraging foundation for improved operating efficiency.

The marketing figure is the operating expense measure reported by management; the Appendix 4C separately records cash payments for advertising and marketing.

For broader context, Q1 revenue was approximately 20% above FY26's average quarterly revenue of $2.03 million, calculated from annual sales of $8.12 million. This places the opening quarter of FY27 ahead of the previous financial year's average sales level.

Further opportunities and outlook

• FZZR expands the retail offering. Coles placed its initial order for the flavoured effervescent product, with ranging announced across 583 stores and rollout expected from October. This creates an opportunity to attract additional consumers and broaden the existing Fiji Kava range.

• US retail offers another avenue for growth. A brokerage agreement is confirmed to help establish an initial retail presence, complementing the existing wholesale and e-commerce businesses.

• Inventory funding supports execution. The company secured an FJ$250,000 inventory financing facility, available from Q2 FY27, alongside its ongoing work to secure additional working capital.

• The business has two substantial geographic markets. Australia and the United States each contributed approximately 49% of quarterly revenue.

What the results mean for Calmer Co

Calmer Co has started FY27 with record sales, a larger wholesale ingredients business and continued momentum across major Australian retailers. The combination of revenue growth, a higher-value product mix and disciplined spending strengthens the company's commercial platform.

The next milestone is to convert this momentum into more consistent customer receipts, improved margins and quarterly cash-flow breakeven. The September result provides an encouraging foundation for that work, with FZZR, repeat ingredient orders and future US retail distribution offering further opportunities.