Calmer Co. International Limited - Record Sales and Strategic Expansion - 31 July 2024
CCO (CCO) Share Update July 2024 Tuesday 30th
Calmer Co. Reports Record Quarterly Sales and Strategic Expansion
The Calmer Co. International Limited (ASX:CCO) has reported record sales for the quarter ending 30 June 2024, alongside strategic initiatives to expand its market presence in the United States.
Instant Summary:
- Record quarterly sales of $1.8 million, a 68% increase from Q3.
- Cash receipts grew by 57% to over $1.44 million.
- Net cash used in operations decreased by 9% to $843k.
- Coles Australia expanded the range of 3 SKUs nationally by 40%.
- Completed an oversubscribed Rights Issue raising $2.65 million for facility upgrades and US market penetration.
Quarterly Performance
The Calmer Co. International Limited (ASX:CCO) has achieved record quarterly sales of $1.8 million for the three-month period ending 30 June 2024. This marks a 68% increase from the previous quarter and a 195% increase compared to the same period last year. The company's annual sales for FY24 exceeded $4 million, demonstrating consistent yearlong growth.
Cash receipts for the quarter grew by 57% to over $1.44 million, reflecting strong sales performance. Net cash used in operations decreased by 9% to $843k, indicating improved cost management.
Strategic Expansion
Coles Australia has expanded its range of Calmer Co. products by 40%, following a strong initial quarter of sales. The products include the 50g and 150g FijiKava® Instant Kava and TakiMai® Kava-shot, the first Ready-to-Drink kava product in Australia. This expansion signifies growing consumer acceptance and demand.
The company has also completed an oversubscribed Rights Issue, raising $2.65 million. These funds will be used to upgrade the Navua facility and support inventory expansion and marketing activities aimed at penetrating the US market, in line with the company's eCommerce-led strategy.
CEO's Statement
CEO Anthony Noble stated, 'The company has finished the financial year strongly with another record quarter of sales, while continuing to focus on cost control and minimizing cash burn. Inventory levels are keeping pace with growing sales, thanks to the exceptional hard work of our Fiji operations and sourcing teams.'
'Australian eCommerce continues to outperform expectations, and our complementary retail presence in Coles Australia is expanding. The team is now focused on consolidating our position in Australia while developing new products for the US market, aiming to replicate our success in the world's biggest consumer goods market.'
The record sales and strategic expansion into the US market are likely to positively impact Calmer Co.'s stock price. The company's focus on cost control and inventory management further strengthens its financial position. The successful Rights Issue and expansion in Coles Australia demonstrate strong market confidence and growth potential.
Investor Reaction:
Analysts are likely to react positively to the record sales and strategic initiatives. The expansion into the US market, coupled with strong performance in Australia, positions Calmer Co. for significant growth. However, investors will be keen to monitor the company's execution of its US market strategy and ongoing cost management.
Conclusion:
Investors should consider the potential long-term benefits of Calmer Co.'s strategic initiatives and strong sales performance. The company's ability to expand its market presence and manage costs effectively will be crucial in maintaining investor confidence. Monitoring the company's progress in the US market will be essential for assessing future growth prospects.