1H FY2025 Interim Results

26 March 2025
(All amounts in NZ$ unless otherwise stated)

KMD Brands 1H FY25 Results

KMD Brands Limited (NZX/ASX: KMD, “KMD” or the “Group”) today announces its results for the six months ended 31 January 2025 (“1H FY25”).

1H FY25 financial summary (vs 1H FY24):

• Group sales up +0.5% to $470.9 million.
• Gross margin down -0.3% of sales to 58.5%.
• Underlying operating expenses(1) up +4.2% to $271.6 million.
• Underlying EBITDA(1) $3.9 million, down -74.3% year-on-year (“YOY”).
• Statutory NPAT loss -$20.7 million. Underlying NPAT(1) loss -$16.1 million.
• Net Working Capital $192.6 million, -$33.6 million lower YOY.
• Net Debt $76.2 million, -$20.0 million lower YOY.
• No interim dividend declared as a result of 1H FY25 operating performance.

Group financial performance

The sales result is underpinned by an improved trend in the direct-to-consumer (“DTC”) channel (including online) for all three brands. Group online sales performance has been a highlight, with all three brands achieving double digit sales growth YOY. Online remains a key growth priority for the Group.

Wholesale sales are taking longer to recover, as wholesale accounts remain cautious on pre-season commitments in a challenging market. Forward orders and in-season buying from key accounts support an improving wholesale trend through 2025.

Gross margin decreased -0.3% of sales below last year to 58.5%, remaining resilient despite increased promotional intensity for Kathmandu and clearance of inventory for Oboz.

All brands continue to actively manage operating expenses while facing global cost pressure.

In a challenging trading environment, net working capital efficiency is a key focus for the Group. Net working capital at 31 January 2025 was $33.6 million lower than 31 January 2024, with reduced inventory balances YOY.

The following are attached in relation to KMD Brands Limited's Interim Result for the period to 31 January 2025:
1. Results Announcement
2. Media Announcement
3. Interim Financial Statements for the six months ended 31 January 2025 and the Independent Auditors Review Report
4. Investor Presentation

Investor briefing being held today at 8:30am AEDT / 10:30am NZDT

Michael Daly (Group CEO), and Ben Washington (Interim Group CFO) will be holding a briefing session for investors and analysts at 8:30am AEDT / 10:30am NZDT today (Wednesday 26 March).

Please attend the meeting by following this link: www.virtualmeeting.co.nz/kmd1hfy25

You may also dial one of the numbers below and provide the conference ID 4456081 to the operator to listen to the meeting.

Australia Toll-Free 1800 953 093
New Zealand Toll-Free +64800005652
USA & Canada Toll-Free (888) 672-2415
United Kingdom Toll-Free +44 800 524 4763
France Toll-Free +33 801 238861
Norway National +47 57 98 94 28
Spain Toll-Free +34 800 906908

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.

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For further information, whether an investor or media enquiry, please contact: [email protected]

(1) Excluding the impact of IFRS 16, restructuring, software as a service accounting, and the notional amortisation of Rip Curl and Oboz customer relationships.

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Announcement PDF