The Calmer Co International reports record quarterly sales figures through distribution partners

Health and wellness company The Calmer Co International (ASX: CCO) has reported record sales of $690,000 for the last quarter of the 2023 financial year.

The figure represents an increase of 80% on the previous quarter and has been attributed to growing sales through distributor partners including CJ Patel, RooLife Group (ASX: RLG) and Amazon.

The Calmer Co also confirmed quarterly cash receipts of $630,000, or a 66% increase on the previous period.

Preliminary unaudited cashflow figures showed a reduction in net cash used in operating activities to $560,000, representing a 20% reduction on the previous quarter and a 60% reduction on $1.4 million recorded for the previous corresponding period.

Annual audited gross profit figures are expected to be over $680,000 while annual earnings before interest taxation and amortisation have shown an improvement of 27% on the previous period.

Natural solutions

The Calmer Co provides natural solutions to calm nerves, support mind and muscle relaxation and induce sleep.

The company’s product range includes drinking powders, teas, shots, concentrates and capsules sold under house brands Fiji Kava, Taki Mai and Danodan Hempworks in markets including the US, Australia, China, New Zealand and Fiji.

In June, The Calmer Co announced the launch of a new e-commerce store in the US to support its Fiji Kava beverage and natural medicine brand.

Previously, these products were sold online through the Amazon marketplace and experienced a strong sales performance earlier this year with average daily sales figure highlights of more than $2400.

On the back of those figures, the company made moves to establish its own online store to further expand its presence in the US.

Containing costs

Chief executive officer Anthony Noble said the new store would help the company contain costs.

“Increasing our focus on e-commerce, along with full implementation of our cost control measures, has meant that the Fiji Kava US business unit has now been profitable since March,” he said.

“Seeing the range grow at around 20% quarter-on-quarter since 2022 underlines why we will now focus on e-commerce [for those products], which has a lower and more scalable cost-to-service compared to conventional retail channels.”

E-commerce partnership

The Calmer Co began an e-commerce partnership with RooLife Group in April, targeting consumers in Australia and China.

Under the terms of the two-year agreement, RooLife will generate revenue through digital marketing, social media management and e-commerce store operations in both markets and and receive a margin on all products sold.

As further incentive for sales performance, RooLife has been granted performance rights to achieve retail sales of up to $15 million, with a minimum of $9 million in China over a period of five years.

It has also been appointed to manage and operate Fiji Kava’s Australian-based online sales which incorporates relaxant and sleep aid capsules, drinking kava, dietary shots and a host of ready-to-drink (RTD) products.

“Alongside the US, China is the biggest international opportunity for Fiji Kava’s products,” Mr Noble said.

“This agreement represents work that has been ongoing for more than a year between RooLife and Fiji Kava, and I am excited to see this come to life in the months ahead.”

RooLife’s initial order for Fiji Kava stock totalled $149,559.