Announcement PDF Annual Report 2023/24 B The Calmer Co. Our vision to become the dominant kava company in the world. A company with an unrivalled supply chain spanning the Fiji islands and offering great opportunity to thousands of Fijian kava farmers across multiple provinces. Then delivering fresh green noble kava to a modern and well equipped manufacturing facility in Navua which produces leading kava products to be exported to the world. In FY24 we made significant steps toward this vision. Establishing a leading position with online sales to the US market via Amazon and recording exceptional sales growth in Australia. DIRECTORS COMPANY SECRETARY SHARE REGISTRY James Dack (Non-Executive Chairman) – appointed 29 September 2022 Natalie Climo 96 Victoria Street West End QLD 4101 Automic Share Registry Level 2, 267 St Georges Terrace Perth WA 6000 1300 288 664 (Local) +61 2 9698 5414 (International) CONTACT INFORMATION BANKER Zane Yoshida (Non-Executive Director) – appointed 20 December 2018 Anthony Noble (Managing Director) – appointed on 20 December 2021 James Tonkin (Non-Executive Director) – appointed 30 January 2023 Griffon Emose (Non-Executive Director) – appointed 30 January 2023 REGISTERED OFFICE Tel: +61 7 3844 1010 AUDITORS Hall Chadwick QLD Level 4, 240 Queen Street Brisbane QLD 4000 GPO Box 389 Brisbane QLD 4001 ANZ 94 Robinson Road East Virginia QLD 4014 PRINCIPAL PLACE OF BUSINESS 96 Victoria Street West End QLD 4101 POSTAL ADDRESS 96 Victoria Street West End QLD 4101 Table of Contents Directors’ Report 17 Consolidated Statement of Profit or Loss and Other Comprehensive Income 40 Consolidated Statement of Financial Position 41 Consolidated Statement of Changes In Equity 42 Consolidated Statement of Cash Flows 43 Notes to the Consolidated Financial Statements 44 Directors’ Declaration 80 Independent Auditor’s Report 82 Corporate Governance Statement 84 Additional Information for Listed Public Companies 97 Annual Report 2023/24 3 Message from the Founder, Zane Yoshida “As we conclude FY2024 I’m filled with a deep sense of gratitude and excitement for the journey we’ve embarked on together.” 4 The Calmer Co. Dear Calmer Co Shareholders, This past year has been transformative for our company, and industry on several fronts. We continue to see strong interest and adoption of noble kava in markets in which we operate at a time when Pacific Island governments have just recently come together to launch the Regional Kava Development Strategy (RKDS) which will focus on a more resilient, inclusive and sustainable kava industry for the benefit of our communities and future generations. This supports our vision and mission and our commitment to bringing calm and balance to the lives of people around the world. OUR EVOLUTION AND VISION Our roots in FijiKava gave us a strong foundation in the natural wellness space, grounded in the rich traditions of the Pacific Islands. Kava, with its calming properties, has always been at the heart of our mission to promote natural well-being. However, as we’ve grown, so too has our vision. Today, as The Calmer Co International, we’re broadening our focus to encompass a wider range of kava formats that cater to the global demand for wellness products that are both effective and ethically sourced. This evolution is more than just a name change. It represents our commitment to expanding our product portfolio, entering new markets, and innovating in ways that stay true to our core values. We remain deeply committed to the principles that guided us as FijiKava, sustainability, respect for nature, and a dedication to improving the quality of life for our customers. A YEAR OF GROWTH AND INNOVATION 2024 has been a year of significant growth for The Calmer Co International. We’ve expanded our reach across international markets, bringing our unique blend of traditional knowledge and modern science to a broader audience. Our product lines have grown to include not only our premium kava products but also a range of other natural supplements designed to support mental and physical well-being. In the coming year, we’ll be launching several new products that we believe will make a significant impact on the wellness industry. We’re also focused on expanding our community engagement, building stronger relationships with our customers, and advocating for the benefits of natural health solutions on a global stage. A HEARTFELT THANK YOU To our community, our customers, partners, investors, and team members, thank you. Your support, trust, and belief in our mission have been the driving force behind our success. We couldn’t have achieved what we have without you, and I’m incredibly excited to see where we can go together. Here’s to a future filled with calm, balance, and continued growth. With sincere gratitude, Vinaka Vakalevu! Zane Yoshida Founder, The Calmer Co International Innovation continues to drive us forward. This year, we’ve invested in new research and development initiatives, exploring the potential of different extract formats and refining our existing products to meet the highest standards of quality and efficacy. Our team has worked tirelessly to ensure that every product that bears our name is something we can be proud of, safe, effective, and true to the natural principles we hold dear. LOOKING AHEAD As we look ahead, I’m excited about the future of The Calmer Co. The global wellness market is expanding rapidly, and with it, the demand for natural, ethically sourced products that deliver real benefits. We’re committed to staying at the forefront of this movement, leading with integrity, and continuing to innovate in ways that serve our customers and our planet. Annual Report 2023/24 5 Message from the Chairman We have been working hard, as a team to turn around the business and build sustainable sales growth this year, while staying true to the vision and the mission of our founder, to become the most dominant kava company in the world. The success we have demonstrated in the Australian market this year puts us on the path to achieving that vision. Having personally now visited the kava farmers in Fiji and our processing facility in Navua several times throughout the year, I can see that we are keeping true to our values of always improving the quality of our products, treating our farming partners and stakeholders with trust and respect and honouring the traditions of the Pacific. We are building a strong and cohesive team in Fiji and in Australia, both at the management and the board level. The strength of our brand and of our teamwork will set us up for continued success in the future. I am excited and optimistic to see the plans for growing the USA market for our products in the coming years and would like to thank our shareholders for their continued support. Mr James Dack OAM Chairman 6 The Calmer Co. Message from the CEO DR ANTHONY NOBLE FY2023 saw the company make a strategic shift towards highermargin distribution channels for our products and renovate a more cost-effective supply chain. Taking this forward over the course of FY2024, we have delivered some concrete results in those new sales channels. At the heart of this have been an incredible, diverse team spanning 3 countries. The company has invested in our people and building an inhouse skills-base to be able to deliver the marketing programs, operations and management acumen, which have allowed us to grow a thriving eCommerce business, in Australia and New Zealand through www.fijikava.com.au. As a small company, with an engaged Board of Directors, we have been able to respond to the challenges of pivoting away from a medicinal and pharmacy-based strategy into a functional beverages company, that is attracting new customers through social and online channels. Our team and culture are younger, more dynamic and more innovative than ever before. It has been my pleasure to watch this team grow and develop together over the year. In the Fiji Islands, we have continued to professionalise and fortify our supply chain during the year, and I am excited to see Zane and the operations team now preparing to modernise our processing facility in Navua in Viti Levu to a level that can support the next horizon of growth. Managing a supply chain that spans the Pacific Ocean from the USA to Australia is not without its unique challenges. The team has gone over and above to keep up with demand and even to build inventory over the final quarter of the year – supporting the growing demand that the marketing and sales teams have driven. This has meant many long days and nights for our staff, a core of whom relocated their families from Ovalau to Viti Levu, remaining committed to The Calmer Co journey. The FDA audited our facility in November 2023, and we learned a lot from that process. Importantly that we are one of the only companies in the kava industry operating at the dietary supplement level of quality assurance. This is a key to our USA market penetration. Our quality team have undertaken a process of continuous improvements over the year and I am confident that our product is the best in the world, and that our quality standards embody our value of “always improving”. Danodan® has been reshaped to a focussed sales and marketing organisation, with the support of manufacturing and distribution partners in the USA. It was an intense year for the Danodan management team to deliver those big changes; they went above and beyond to get it done. We have had to make several hard decisions this year as we relentlessly simplify our business model, product offering and routes to market. Our Board of Directors have all leaned in across their various areas of expertise to ensure those decisions were executed. The result is that we have a business that is well on its way to scale in high margin sales channels. Our mission for FY2025 is to deliver that scale and the key to this will be to grow our USA business alongside our Australian and Fijian businesses. I remain confident that we have the team, the culture and the commitment to purpose to deliver on that mission. We would not be in such an optimistic position now, without the support of our long-term shareholders, who have supported our transformation vision through continued investment and belief in our products and the team. Thank you one and all, Dr Anthony Noble Managing Director and Chief Executive Officer The Calmer Co. International Limited Annual Report 2023/24 7 Company Overview Corporate Snapshot FY24 FINANCIAL RESULTS OVERVIEW REVENUES $4.3m +139% vs FY23 ASX OVERVIEW CCO.ASX EBITDA ($3.5)m +35% vs FY23 ASX TICKER CODE 1,515m SHARES ON ISSUE 30 JUNE 2024 .08c SHARE PRICE 30 JUNE 2024 DAILY ECOMMERCE SALES JUNE24 >$18,500 +518% vs June23 GROSS PROFIT $2.1m +279% vs FY23 FY24 HIGHLIGHTS EXCEPTIONAL ECOMMERCE SALES The shape of eCommerce sales have shown exceptional growth month to month during FY24 & now exceeded $18,500/day at the end of June 24. Driven primarily by eCommerce success in Australia, our eCommerce marketing process will now be rolled out in the US market. COLES EXPANDS RANGING BY 40% Coles have extended ranging of both Fiji Kava and Taki Mai Shots from 1,563 to 2,183 listings across 799 Coles locations Australia wide. This greatly extends our national retail footprint and validates a broader trend of drinking kava for health purposes. ANNUAL SALES >$4M FY24 Total sales eclipsed $4m with almost half of this revenue ($1.85m) recognised in Q4, FY24. 10 The Calmer Co. $12.1m MARKET CAPITALISATION CASHFLOW SUMMARY Cash Receipts $4.0m +128% vs FY23 Operational Highlights US MARKET FOCUS Led by a strong digital campaign and ongoing Amazon sales, our US market entry is underway. INVENTORY FOCUS $1.5m in OpEx to improve our stock levels which now average 90 days. MANUFACTURING EXPANSION Our processing capacity in Fiji will increase by 3x following current machinery and technology upgrades. NETWORK NUTRITION TO INCLUDE METAGENICS USA WALMART PARTNERSHIP As part of our US plan we have partnered with Walmart.com in Q4 and sales have commenced. Metagenics USA now use Kavaton® as an active ingredient in its products. OVERSUBSCRIBED RIGHTS ISSUE REMARKETING GROWTH The capital raise of $2.65m was heavily oversubscribed. Funds will be used for manufacturing facility expansion and to increase inventory levels. We have built our database to > 50,000 consumers with active remarketing to repeat customers. TAKI MAI SHOTS NATIONAL DISTRIBUTION Following promising early sales traction, Coles have expanded Taki Mai shot ranging to more stores. Our products will now be ranged in 799 Coles stores, giving us a national retail footprint with more SKUs. FIJI KAVA Coles will now sell both 50g and 150g Fiji Kava drinking kava. 150g pouch is our most profitable SKU. TOTAL LISTINGS Our total product listings have extended from 1,563 to 2,183 representing a 40% expansion in total listings. Annual Report 2023/24 11 FY24 E-Commerce Highlights RESULTS OVERVIEW TOTAL ECOMMERCE REVENUE OCEANIA SALES $1.61m $3.0m +302% $1.39m +350% vs FY23 DAILY E-COMMERCE SALES IN JUNE 2024 AMERICAS SALES vs FY23 >$18,500 /day +98% vs FY23 +518% vs June23 E-COMMERCE HIGHLIGHTS Finding New Customers Remarketing to our Database Q4 Accelerating Sales With the use of digital marketing we have been able to find a huge new market of health conscious consumers looking to benefit from the therapeutic value of kava. We have converted many of these to customers! Our consumer database has grown to >50,000 people. During FY24 we developed remarketing campaigns to generate repeat purchase from our loyal customer base. Total sales eclipsed $4m with almost half of this revenue ($1.85m) recognised in Q4, 2024. FY 24 E-COMMERCE SALES IN FOCUS eCommerce Sales by Month FY2024 Exponential Shape of Sales 18,000 eCommerce sales experienced exceptional sales growth throughout FY24 that accelerated in Q4. Led by the Australian market online sales, that grew by >500% over the year. 16,000 Average Basket Value 14,000 Average basket value has also increased over the year to $70 12,000 Meta Platforms 10,000 Driven by digital advertising primarily via Meta platforms and we have grown our 8,000 database to over 50,000 customers. 6,000 Psychographic Segmentation 4,000 Psychographic segments driving this growth are health focussed consumers looking to replace alcohol with a healthier alternative, followed by consumers looking for a natural solution to reduce anxiety and aid sleep. 2,000 12 Jul Sep Nov The Calmer Co. Jan Apr Jun FY24 Geographic Analysis RESULTS OVERVIEW TOTAL SALES AMERICAS TOTAL SALES OCEANIA $2.8m $1.5m +627% +82% vs FY23 vs FY23 OCEANIA MARKET AMERICAS MARKET Dominant kava player Leveraging our Systems for Growth The Oceania market generated 65% of total revenues in FY24. Led primarily by eCommerce and with our head office and distribution warehouse located in Brisbane. We have maintained a solid business in the Americas market with Amazon where Fiji Kava 150g is the best selling instant kava product. Following one out-of-stock event, we have improved all of our processes across stock control, online ordering and digital and retail distribution. In FY25 and beyond we plan to take the lessons learnt in Australia and grow a significant US based business. We leveraged these systems and processes to scale up in FY24 and kept up with booming sales growth. We have launched our own eCommerce store with Shopify, partnered with Walmart.com and stocked up our warehouse in preparation for a new marketing push . Q4 GLOBAL SALES IN FOCUS Total Global Sales by Month Global Overview 800,000 Total global sales increased to $1.8m in Q4 with 75% of total sales being generated in the Oceania market. 700,000 Q4, FY24 sales of $1.8m represents a growth rate of 295% vs Q4, FY23. 600,000 500,000 Coles retail sales are now a growing line of business in several SKUs and we expect this to grow with Coles announcing they will expand our total listings by 40% in July 2024. 400,000 300,000 200,000 100,000 0 Apr May Jun Annual Report 2023/24 13 Brand Analysis Fiji Kava, continues to exhibit strong performance with drinking powder establishing itself as our flagship product. Our best selling and most profitable SKU is the 150g drinking kava. It is also the number 1 instant kava brand sold on Amazon.com in the USA. Brand Snapshot PRODUCTS: Drinking kava, teas, capsules USP: High quality kava brand with blue chip retail partners Markets: USA, Australia, NZ, Fiji URL: fijikava.com fijikava.com.au Taki Mai, is a heritage brand and the expression is synonomous with kava in Fiji. Taki Mai kava shots were launched in over 750 Coles locations around Australia in June24 and show good signs of strong early adoption. We are the only company able to deliver cold pressed kava shots to a large consumer market. Brand Snapshot PRODUCTS: Kava shots and drinking kava USP: Traditional Fijian heritage brand from high quality kava cultivars Markets: Australia, NZ, Fiji, Pacific Islands URL: takimai.com 14 The Calmer Co. Danodan is headquartered in Portland and is tapping into new retail channels in Oregon, California, Washington State and Hawaii. The introduction this year of a range of innovative topical products further underscores its strategic evolution Brand Snapshot PRODUCTS: Hemp & CBD oils USP: Organic Full spectrum CBD tinctures and topicals Markets: USA URL: danodan.com Annual Report 2023/24 Supply Chain Excellence Over 10 years and $10m has been invested to build a supply chain that would takes years to replicate. Partnership with KaiMing Agricultural Processing in place for co-processing, new product development and envisages corporate acquisition. Partnership with iTaukei Trust Fund Board & Tutu Agricultural College provides a conduit to 60-70% of kava farmers in Fiji along with commercial farm off-take agreements across the Fijian islands. Facility and supply-chain can support growth of up to 3x. Digitisation of supply chain with traseable Solutions to be rolled out in 2024/5 Kava Sourcing Location (Province) Macuata Cakaudrove Bua Ra Ba Lomaiviti Naitasiri Serua Kadavu 16 The Calmer Co. Directors' Report Annual Report 2023/24 17 Directors’ Report The Directors present their report together with the summary of the financial information of The Calmer Co. International Limited and its Controlled Entities (the Group or Calmer Co.) for the financial year ended 30 June 2024 and the auditor’s report thereon. 1. DIRECTORS Mr James Dack Non-executive Chairman appointed 20 September 2022 Mr Zane Yoshida Executive Director appointed 20 December 2018 Mr Anthony Noble Managing Director appointed 20 December 2021 Mr James Tonkin Non-executive Director appointed 30 January 2023 Mr Griffon Emose Non-executive Director appointed 30 January 2023 For additional information on Directors including details of the qualifications of Directors please refer to paragraph 10 of this Directors’ Report. 18 The Calmer Co. 2. INFORMATION ON OTHER OFFICERS Company Secretary Natalie Climo held the position of Company Secretary for the financial year ended 30 June 2024. Please refer to paragraph 10. 3. MEETINGS OF DIRECTORS During the financial year ending 30 June 2024, 7 meetings of Directors (including committees of Directors) were held. Attendances by each Director during the year are stated in the following table. DIRECTORS’ MEETINGS COMMITTEE MEETINGS DUE DILIGENCE COMMITTEE Number eligible to attend Number Attended Zane Yoshida 7 7 Dr Anthony Noble 7 7 James Dack 7 7 James Tonkin 7 7 Griffon Emose 7 7 Number eligible to attend Number Attended REMUNERATION COMMITTEE Number eligible to attend Number Attended AUDIT COMMITTEE Number eligible to attend Number Attended At the date of this report, the Remuneration Committee, Audit Committee and Nomination Committee comprise the full Board of Directors. The Directors believe the Company is not currently of a size nor are its affairs of such complexity as to warrant the establishment of these separate committees. Accordingly, all matters capable of delegation to such committees are considered by the full Board of Directors. 4. NATURE OF OPERATIONS AND PRINCIPAL ACTIVITY The Calmer Co. International Limited is a health and wellness company with operations in Australia, Fiji, and the USA, which produces nutraceuticals and functional beverage products to reduce anxiety, promote relaxation, improve sleep, and support sports recovery and performance. The company works with farmers to source high quality kava and USDA certified organic hemp that is processed into active pharmaceutical grade extracts for use in nutraceutical products and for B2B sales as well as beverage products including, powdered drinking kava, cold pressed kava shots, CBD and kava tinctures and ready to drink dietary shots. Our Taki Mai® and FijiKava® brands are focussed on expanding the distribution of kava throughout global markets to provide a natural alternative to alcohol and to synthetic sleep and antianxiety prescription medicines. Noble kava extracts are backed by a significant body of peer reviewed clinical research into the safe and effective use of kava, and thousands of years of traditional use in the Pacific Islands. Our Danodan® brand offers a unique patented range of USDA certified organic tinctures and topical products which are sold throughout the USA in natural grocery chains, to B2B partners as white-label products and online for relaxation, sleep and recovery. The Company’s products are Therapeutic Goods Administration (TGA), Food Standards Australia and New Zealand (FSANZ) and Food and Drug Administration (FDA) compliant and are sold online and through retailers in Australia, Fiji, New Zealand and in the United States. Annual Report 2023/24 19 Directors’ Report 5. REVIEW OF OPERATIONS The company has focussed on investing in building a supply chain that can support expansion into new product formats and to meet growing demand for products in Australia and the USA. The company has focused on building a scalable and profitable eCommerce sales channel in Australia through our own website, www.fijikava.com.au and our Brisbane based distribution and fulfilment operations. In the USA the company has focussed on growing our market on Amazon, com and has initiated our own website for sales of FijiKava® products. Through our B2B partnership with Network Nutrition we supply Kavaton® branded kava extract to range of nutraceutical brands in Australia and the USA. The company has been carefully building a complementary retail presence in the Australian market through Coles Australia for our entry level and best-selling SKUs. In the Fiji market the company has focussed on building the FijiKava® brand in the tourist market. The company has been investing over FY24 into development of innovative new products that will focus on improving taste and customer experience to enable competitive launches into new markets, particularly the USA, that will fuel continued growth. 20 The Calmer Co. Over FY24 the company has continued to focus on controlling costs and rationalising those projects and distribution arrangements with high costs and/or low growth to enable more investment and focus on high growth sales channels aligned with achieving profitability. 1. Supply chain development in The Fiji Islands The company’s supply chain is at the core of our strategy. Our focus continues to be on building a robust, sustainable supply chain that is vertically integrated and fully traceable and transparent. Building on our relationships with the iTaukei Trust Fund Board and Tutu Rural Training Centre, the company has now developed relationships with farmers across ten provinces which include, Lomaiviti, Namosi, Naitasiri, Serua, Cakaudrove, Bua, Macuata, Ra, Ba and Kadavu. The Calmer Co. takes pride in building these relationships directly with our farmers who range in size from subsistence to semi-commercial and commercial. There are more farming cooperatives being established in rural areas with the support of the Fiji government. According to the PHAMA Plus program (2016), 4,500 tonnes of dried kava is produced at farm gate annually. This equates to 22,500 tonnes of fresh green kava per annum. Based on our current capacity we process 2.3% of this volume on an annual basis. We estimate that the current number of kava plants in the ground far exceed estimates provided to the industry in 2016, on which these number have been calculated. The company expects to complete the installation and commissioning of its plant and equipment before the end of Q4, FY25. The work on the digitisation of our supply chain with Traseable (sic) Solutions has been completed and gives the Calmer Co. a strong competitive advantage and allows us to continue to build trust with our consumers. Finally, we are looking forward to supporting the Fiji Kava Bill which once enacted will establish the Fiji Kava Council for the cultivation, processing, transportation and marketing of kava. 2. Upgrading Navua Processing Facility The Calmer Co. through our wholly owned subsidiary, South Pacific Elixirs Pte Ltd currently processes up to 10 tonnes of fresh green kava on a weekly basis. To support our continued growth and expansion into the USA, the company is upgrading its current facility to be able to process up to 25 tonnes of green kava per week. We are in the process of installing and commissioning new equipment which includes, a washing and high-pressure cleaning line, as well as a semi-automatic powder milling and blending line, integrated with a high-speed pouch filling and packing line to support our drinking kava SKUs which are sold in international markets under the Taki Mai® and FijiKava® brands. The upgrade also includes a continuous drying system to further improve drying which is a key element in the quality of our product formats. As part of this process and increased electricity consumption, we are also upgrading our on-site transformer. 3. eCommerce led strategy in Australia and the USA Australia The company invested in revising and updating our Australian website to optimise SEO over FY23 and began the financial year with a program of test marketing. We utilised a variety of personas and product positionings that drew from existing medical and scientifically validated use cases for our kava products, including sleep support, anxiety reduction, stress relief and sports recovery. In addition, the marketing personas tested also considered the traditional and ceremonial use of kava as a drink in the Pacific, where kava plays a social role like alcohol in the Western world, in addition to its spiritual, ceremonial and cultural importance in those communities. Our Australia eCommerce business has profitably scaled from $17,000 in July 2023 to $384,000 in June 2024. Annual Report 2023/24 21 Directors’ Report www.takimai.com) and the investments made in the Amazon platform will synergise with our increasing direct-to-consumer advertising in the USA which will ramp up significantly in FY25 in both paid search and social media channels. The company has also joined the www.walmart.com platform with our capsule and drinking kava products being listed on this site and referring directly to the Shopify website in the USA. Danodan® eCommerce sales were 74,000 USD over the financial year, and the company will increase the focus on eCommerce execution for the Danodan brand in FY25. There are significant restrictions on the advertising of cannabis products via social media and paid search platforms used for our other products, however, x.com advertising for these products has recently become possible since the change of ownership of that platform. United States of America . US eCommerce has focussed initially on optimisation and investment into the company’s two Amazon brand stores, FijiKava® and Taki Mai®. Development of “A+” content for the Amazon brand stores has allowed the company to showcase our products and brand story, which is a prerequisite for scaling on the platform. Sales have grown on Amazon by 50% over FY24 with an important increase in “subscribe-and-save” customers to more than 500 over the year - a key metric. The company has been actively testing marketing personas and niche marketing positions for the FijiKava® and Taki Mai® products in the USA. Initial results indicate that the US market is more sophisticated than the Australian market and that a more niche positioning along with improved flavour formulations will be key success factors for scaling USA eCommerce in FY25. Furthermore, the US consumer online behaviour strongly favours a co-operative approach between Amazon.com and our Shopify powered websites (www.fijikava.com and soon 22 The Calmer Co. 4. Complementary Retail Partnerships in Australia and Fiji Coles Australia was the first major retailer to launch drinking kava products in Australia following the initiation of the Pilot Commercial Import Program for kava into Australia in December 2022, with our 50g FijiKava® Instant Kava product. Over FY24, the company has expanded our offering in Coles by adding our global best-selling SKU, 150g FijiKava® Instant Kava and launched the first Ready-to-Drink kava product into the Australia market, Taki Mai® Kava-shot. Following strong initial uptake of all three of the Coles’ ranged SKUs in Q4 of FY24, the listings were expanded by 40% in Q1 FY25, to represent almost all Coles stores around Australia. The exception being those stores that were excluded due to Northern Territory regulations that prohibit the sale of kava in that territory and stores north of Rockhampton in Queensland and stores north of Perth in West