Me Today (MEE) H2 2024 earnings summary

Executive summary

• Group revenue for FY24 was $5.03m, with a net loss after tax of $11.28m; operating EBITDA loss was $4.48m after adjusting for $6.8m in non-recurring and non-cash items.

• King Honey business contributed $2.05m in revenue, Me Today branded sales $3.43m, and agency services $0.65m; gross revenue before marketing costs was $6.13m.

• A major restructure and recapitalisation in March 2024 included a $3.1m capital raise and changes to debt security arrangements, aiming to ring-fence Me Today from King Honey while seeking a sale of King Honey.

• The beekeeping operations were closed due to challenging trading and excess manuka honey inventory; cost reduction efforts are ongoing.

• Discussions to sell King Honey are ongoing, with one interested party in advanced talks.

Financial highlights

• FY24 revenue declined to $5.03m from $7.88m in FY23; net loss after tax improved to $11.28m from $12.97m.

• Operating EBITDA loss was $4.48m, improved from $5.15m in FY23.

• Gross margin impacted by inventory write-downs and lower honey sales; $2.8m of inventory expensed and $50k written off.

• Basic and diluted loss per share improved to $(0.411) from $(0.851) year-over-year.

• Cash and cash equivalents increased to $2.84m from $0.91m; net cash outflow from operations was $3.11m, improved from $5.56m.

Outlook and guidance

• FY25 strategy focuses on reducing operating EBITDA loss while continuing targeted brand investment.

• Me Today will expand its product range in New Zealand and target growth in Greater China, Southeast Asia, USA, and Australia.

• King Honey's future is contingent on a successful sale; ongoing cost reviews and restructuring are expected.