Me Today Limited Analysis

Overview

The Me Today Group owns and operates the Me Today brand (Me Today), a New Zealand founded and based health and wellness brand that produces premium quality products clearly linking supplements and natural skincare, ultimately making it easier for consumers to shop.

Me Today's products have been formulated using absorbable ingredients and, where possible, are either vegetarian or vegan friendly. The Me Today Group is conscious of its responsibility towards the environment, so product packaging has been designed to minimise plastic waste and is almost entirely recyclable. The Me Today range offers a modern solution to modern problems.

Launching with a cross-category focus positioned Me Today well to grow through new product development and expansion into new health and wellness categories.

As well as the Me Today brand, the Founders have created The Good Brand Company. The Good Brand Company was established to sell and market third party brands within the health and wellness space. The Good Brand Company represents Me Today and other agency branded businesses. It is actively seeking new brands to further complement its existing brand portfolio.

The Founders of the Me Today Group are Grant Baker, Stephen Sinclair and Michael Kerr. They joined forces to take advantage of what they believe to be a significant opportunity to leverage their joint experience and expertise by launching a new brand in the health and wellness space.

Performance

The following information was extracted from Me Today Group's ("MEE") full year report, released 29 August 2024:

The Group recorded revenue of $5.03m and a loss after tax of $11.28m. The operating EBITDA loss was $4.48m after adding back non-recurring and non-cash items of $6.8m relating to the King Honey business as explained further below. By comparison the operating EBITDA loss for FY23 was $5.15m.

Gross revenue for the Group before the costs of marketing services provided by a customer was $6.13m. This was split between the King Honey business at $2.05m, Me Today branded sales of $3.43m and agency services revenue at $0.65m.

The Group has signalled previously it intended to sell the King Honey business; discussions are ongoing with one interested party which the board hopes to bring to a conclusion within the coming months.

The operating EBITDA loss for the Group was $4.48m (FY23 $5.15m), split between the business divisions as follows:

• The Me Today sale of goods and agency services segments combined operating EBITDA loss was $1.53m compared to an operating EBITDA loss of $2.52m for the 12 months ended 30 June 2023.
• The King Honey segment operating EBITDA loss was $1.85m compared to an operating EBITDA loss of $1.2m for the 12 months ended 30 June 2023.
• The listed company and shared services operating costs were $1.1m compared to $1.4m for the 12 months ended 30 June 2024.

Deducted from operating EBITDA were expenses amounting to $6.80m resulting in a net loss after tax of $11.28m.

The $6.80m of expenses consisted of the following.

• Net finance Costs $0.72m
• Fair Value loss on Biological assets $0.47m
• Depreciation and Amortisation $0.47m
• Amortisation of Customer Relationship asset $0.54m
• Impairment of Customer Relationship asset $3.45m
• Restructuring costs $0.36m
• Impairment of Right of Use Asset $0.12m
• Loss on Disposal of fixed assets $0.57m
• Other Costs $0.10m

Total Expenses deducted from operating EBITDA $6.80m