1H FY2024 Interim Results

KMD Brands Limited
ASX / NZX / Media announcement


19 March 2024
(All amounts in NZ$ unless otherwise stated)


KMD Brands 1H FY24 Interim Results


KMD Brands Limited (ASX/NZX: KMD, “KMD” or the “Group”) announces its results for the six months ended 31 January 2024 (“1H FY24”).


1H FY24 financial summary (vs 1H FY23):

• Group sales decreased by -14.5% to $468.6 million.
• Gross margin improved by 10 basis points to 58.8%.
• Operating expenses $15.8 million below last year, down -5.7% YOY.
• Underlying EBITDA(1) $15.1 million, down 66.8% YOY due to lower sales.
• Statutory NPAT loss -$9.7 million; Underlying NPAT(1) loss -$6.9 million.
• Strong balance sheet position. Net working capital -7.4% lower YOY to $226.2 million.
• No interim dividend declared as a result of 1H FY24 operating performance.

Commenting on the 1H FY24 results, Group CEO & Managing Director Michael Daly said:

“Through the first half we continued to experience the effects of weakness in consumer sentiment. Sales were 14.5% below last year’s record result; and decreased for all three of our brands.”

“Weaker consumer sentiment, the warmest winter on record in Australia and an over-reliance on winter weight product led to a disappointing first half for Kathmandu.”

“Rip Curl and Oboz are cycling record sales last financial year, and while revenues from the direct-to-consumer channel are showing single digit declines, the wholesale channel has been more challenging for both brands as wholesale customers reduce inventory holdings.”

“In a challenging sales environment, the Group improved gross margin despite currency headwinds, controlled operating costs, and reduced working capital.”

The following are attached in relation to KMD Brands Limited's Interim Result for the period to 31 January 2024:
1. Results Announcement
2. Media Announcement
3. Interim Financial Statements for the six months ended 31 January 2024 and the Independent Auditors Review Report
4. Investors Presentation

Investor briefing

An investor call will be hosted by Michael Daly (Group CEO) and Ben Washington (Interim Group CFO) at 8.30am AEDT / 10:30am NZDT today, Tuesday 19 March 2024.

For those wishing to participate, please follow the link below.
www.virtualmeeting.co.nz/kmdhy24

If you are unable to participate via weblink, please dial one of the numbers below and provide the conference ID to the operator:

Australia Toll Free: 1800 571 226
New Zealand Toll Free: 0800 450 012
France: +33 800 943355
United Kingdom: +44 800 358 0970

Conference ID: 7772131

The webcast will be available on the KMD Brands investor website following the call.

This announcement has been authorised for release to NZX / ASX by the Board of Directors of KMD Brands Limited.

- ENDS -

For media and investor enquiries, please contact [email protected]

(1) Excluding the impact of IFRS 16 and the notional amortisation of Rip Curl and Oboz customer relationships.

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Announcement PDF