Me Today results for the six months ended 31 December 2024

Me Today Ltd announces six-month results recording revenue growth and reduction in trading losses

Results for the six months ended 31 December 2024 show revenue growth of 64% for the Group.

Me Today gross branded and agency revenue grows 55% from $1.74m to $2.69m for the half year.

Me Today gross branded and agency revenue to exceed $5.0m for the full year ended 30 June 2025.

China partner meets performance hurdle and exercises option to take partial ownership in China trademark.

Me Today Limited (NZX: MEE) has released its unaudited Group results for the six months ended 31 December 2024.

Results show Group revenue of $3.7m an increase of 64% compared to $2.3m for the six months ended 31 December 2023, and a loss after tax of $2.43m, compared to a loss of $7.25m in the six months in the year prior. The operating EBITDA loss for the period is $1.79m a decrease of 19% on the loss of $2.2m for the same period last year.

Further explanation of the result is included below, with a reconciliation of the costs that account for the difference between operating EBITDA and the net loss after tax.
Gross revenue for the Group, before the costs of marketing services provided by a customer, was $4.28m. This was split between King Honey at $1.59m, Me Today branded sales of $2.39m and agency services revenue of $0.3m.

The Group remains in discussions with the prospective purchaser of the King Honey business however there is uncertainty as to whether a transaction will conclude. The lenders of the King Honey business remain supportive at this time and the Group remains in discussions with them in respect to debt structure of the business moving forward. Once the terms of the debt structure have been agreed or a sale concludes an update will be provided to the NZX.

Separate to the discussions relating to the King Honey business sale the Group is considering a capital raise to support continued growth of the Me Today brand. The terms and the amount of the capital raise are still to be confirmed, and further details will be provided once the plans are finalised.

ME TODAY BRAND PERFORMANCE AND CHINA LICENSING UPDATE

Me Today China brand Licensing Agreement

As advised previously Me Today signed a full suite of commercials agreements with a large Chinese Sports Nutrition Company. The licence agreements provide for payment of a licencing fee over a period of 10 years to Me Today based on revenue earned in Greater China by the licensor. The agreements also allow for the licensor to progressively acquire up to 50% of the greater China trademark should they achieve certain revenue targets.

We are excited to announce that we have received a notice from our licence partner advising they have achieved sufficient revenue to enable them to take ownership of 20% of the Me Today brand in China. Once Me Today has completed verification of the notice it will transfer 20% of the ownership of the Greater China Trademark to the Chinese partner.

The partner has been very active in promoting Me Today across the Chinese TikTok platform Douyin. During the past six months Me Today has taken part in a number of Live Streaming events in partnership with famous influencers such as Liu Yuan Yuan, Momo and Li Xiao Meng. The activations have been very successful for the brand in China by creating large sales and a significant increase in brand profile. The profile spreading into other international markets as well as influencing sales activity in New Zealand.

The licence fee payable to Me Today was set as a fixed fee in year one and in year two onwards it is payable as a percentage of revenue. The first-year finishes on 31 March 2025, so the positive impact of revenue-based licence fee will flow into the 2026 financial year.

Me Today is working closely with the Chinese partner in setting plans for 2025 and beyond. Given the impressive start to the partnership, we expect the brand to continue to grow in the Chinese market.

The arrangement is an exciting partnership for the Me Today brand which, as well as creating new revenue and increasing global brand visibility it is also helping to access new product development concepts. The supply chain capability of our partner is significant, and we are leveraging manufacturing benefits from economies of scale, including more competitive pricing on bulk raw materials.

Me Today Brand Trading Update

Gross revenue for the Me Today brand and the agency business for the six months was $2.69m, an increase of 55% on the same period last year. Gross revenue is revenue before the costs of marketing services provided by customers of $0.54m. The costs of marketing services provided by customers in this half are down on the spend in the last half of $0.61m. The operating EBITDA loss for the brand was $0.84m, a small increase on the operating EBITDA loss in the last half of $0.81m.

The business continues to focus on growing revenue and reducing costs while continuing to spend on the brand in a more targeted way. This strategy will continue for the remainder of the FY25 year with the business expecting full year gross revenue for the Me Today brand and agency business to exceed $5.0m and the operating EBITDA loss to be less than $1.6m.

The New Zealand market share continues to grow with increased brand presence through marketing activity above the line and expanded shelf presence within the New Zealand pharmacy channel. The expanded shelf presence rolled into the New Zealand market from October 2024 has created a lift in sales.

Outside of New Zealand the brand continues a targeted strategy with the Chinese partnership being the biggest opportunity.

Other international activity in this reporting period can be summarized as follows.


USA

The USA market continues to grow with a focus on both offline and online channels. A new online partner has been appointed with additional growth in sales being achieved post the appointment. Focus remains on growing revenue in the USA online business. We expect sales to exceed $500k in the 2025 calendar year which will provide a platform for further growth in 2026. The online business is complimented by offline sales where we target opportunities for sales of manuka honey through the grocery channels that we have previously established. These channels have become more price sensitive and selective given the surplus of manuka honey still available from New Zealand suppliers.

Japan

We have an established partner in the Me Today brand across manuka honey, Skincare and Supplements. We have been building the sales channel with our Japanese partner and trialing new format opportunities. Our partner has secured an opportunity to list Me Today in a large retail chain in Japan. The focus is mainly through our new SuperHoney offering of multi floral manuka infused with specific ingredients. We have secured sales orders for NZ$500k which are currently in production and will ship during March 2025.

Other Markets

We continue to pursue opportunities and build on existing sales channels in Ireland, South East Asia and the UAE. We will continue to work with our partners in those markets to grow the Me Today brand.

King Honey and Manuka Honey

The revenue and operating EBITDA for the King Honey business in the period ended 31 December 2024 was as follows.

Revenue was $1.59m which was an increase of 38% on the six months to 31 December 2023 of $1.15m.

The operating EBITDA loss for the King Honey business was $0.42m which was a decrease of 45% on the operating EBITDA loss of $0.76m in the six months ended 31 December 2023. prior half.

The King Honey business has now completely closed its beekeeping operation and continues to focus on cost cutting measures to further reduce cost where possible.

King Honey continues to look for opportunities to increase sales. Over the past few months, it has delivered orders of NZ$1m into its Chinese partner. Half the order was shipped in the December half year with the balance of the order being shipped in early March. Further discussions are underway in China in respect to the forecast purchase plan for the coming 12 months. Discussions are also underway with partners in Europe and the Company expects continued and increased sales from the European market.

Sales through the Me Today brand also continue to grow with King Honey supplying manuka honey to Me Today for sale through its network. These sales by Me Today assist King Honey to help reduce its large holding of manuka honey inventory.

Other contract pack and OEM opportunities also continue to present themselves.

As described above the primary focus for King Honey is the sale of the business and discussions with the lenders around agreeing a plan which provides for an appropriate debt structure moving forward.

The Group remains committed to optimizing the performance of the King Honey business until a sale or debt restructuring is achieved. The Group acknowledges the continued tough market operating conditions within the manuka honey sector.
Half Year Results Further explained.
As explained above the Group Operating EBITDA loss for the six months was $1.79m which was a decrease of 19% on the loss of $2.22m for the December 2023 half. The reconciliation from operating EBITDA loss to the net loss for the half is shown below.

- Me Today and Agency -$0.84m (HY24 -$0.81m)
- King Honey -$0.42m (HY24 -$0.76m)
- Head Office Costs -$0.53m (HY24 -$0.65m)
Total Operating EBITDA -$1.79m (HY24 -$2.22m)

Less other expenses
- Net Finance Costs $0.39m (HY24 $0.33m)
- Depreciation and Amortisation $0.25m (HY24 $0.18m)
- King Honey related write downs $- (HY24 $4.52m)
Total Expenses deducted from EBITDA $0.64m (HY24 $5.03m)
Net loss for the half $2.43m (HY24 $7.25m)

The King Honey write downs related to costs associated with King Honey assets that did not occur again in this half.



For further information, please contact:

Grant Baker
Chairman, Me Today Limited
021 729 800

Stephen Sinclair
CEO, Me Today Limited
021 330 053
[email protected]

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