Kmd Brands Limited · NZX:KMD
Kmd Brands — 1H FY25 Earnings Presentation
30 slides from Kmd Brands's earnings presentation, Mar 6, 2025
Slide 1: 1H FY25 Results Presentation
For personal use only 1H FY25 RESULTS PRESENTATION 26 MARCH 2025 Michael Daly Ben Washington Group CEO Interim Group CFO
Slide 2: Outline
For personal use only OUTLINE 1. 1H FY25 SUMMARY 3 2. GROUP FINANCIALS 8 3. BRAND FINANCIALS 17 4. FOCUS AND OUTLOOK 21 5. APPENDICES 26 2 1 H F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 3: Section 1: 1H FY25 Summary
For personal use only SECTION 1 1H FY25 SUMMARY 3 1 H F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 4: Financial Summary
+0.5% YOY Sales $470.9m 1H FY24 $468.6m For personal use only Gross -0.3% of sales margin 58.5% 1H FY24 58.8% Operating +4.2% YOY $271.6m 1H FY24 $260.6m expenses 1 FINANCIAL Underlying -74.3% YOY SUMMARY EBITDA 1 $3.9m 1H FY24 $15.1m Underlying Statutory NPAT -$16.1m -$20.7m NPAT 1 Net working $33.
Slide 5: Brand Strengths
BRAND STRENGTHS For personal use only • Iconic, inspirational, and authentic brand. • Leading outdoor brand in Australasia. • Established and distinctive American Montana- • Founded in Bells Beach, Australia, in based hiking footwear brand, founded in 2007. • Founded in New Zealand in 1987, with dee
Slide 6: Brands With Global Reach
BRANDS WITH GLOBAL REACH For personal use only We operate over 300 stores globally, and our brands are sold in over 8,000 locations EUROPE NORTH AMERICA $100m Sales 27 Owned Stores 10 Licensed Stores +2,000 Wholesale Doors $200m Sales 27 Owned Stores 27 Licensed Stores ASIA +3,800 Wholesale Doors $4
Slide 7: Strategic Pillars
STRATEGIC PILLARS For personal use only BUILDING ELEVATING OPERATIONAL BEST FOR GLOBAL DIGITAL EXCELLENCE PEOPLE AND BRANDS PLANET International brand exposure Strong online sales growth Working capital reducing B Corp certified • Rip Curl’s latest partnership, • Double-digit online sales • Continue
Slide 8: Group Financial Performance
For personal use only SECTION 2 GROUP FINANCIAL PERFORMANCE 8 1 H F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 9: Profit & Loss
PROFIT & LOSS For personal use only KMD BRANDS Statutory Underlying*1 IMPROVING QUARTERLY SALES TREND NZ $m*2 1H FY25 1H FY24 1H FY25 1H FY24 Var % • Continued improvement in sales trends through Q2 (further detail on slide 11). Kathmandu’s sales trends have continued to improve in SALES 470.9 468.6
Slide 10: Diversified Sales
DIVERSIFIED SALES For personal use only SALES BY REGION (NZ $m) 547.9 468.6 470.9 410.7 407.3 1H 1H 1H 1H 1H FY21 FY22 FY23 FY24 FY25 Australia New Zealand North America Europe Rest of World SALES MIX 1H FY25 8% 1% 8% Oboz Licensing / Royalties 8% Rest of World 26% Europe Wholesale BY BY BY 19% BRAN
Slide 11: Improving Sales Trend by Brand
IMPROVING SALES TREND BY BRAND For personal use only 15.0% YOY Sales Variance % by quarter 15.0% 15.0% YOY Sales Variance % by quarter YOY Sales Variance % by quarter1 (Group NZD reporting currency) 6.5% 6.9% (Group NZD reporting currency) 5.0% 5.0% (Group NZD reporting currency) 5.0% -5.0% -2.4% -5
Slide 12: Strong Online Sales Growth
STRONG ONLINE SALES GROWTH For personal use only DIRECT TO CONSUMER SALES (NZ $m) Retail Stores Online DTC Online % of DTC sales 450.0 50.0% 400.0 380.1 45.0% 330.3 343.7 40.0% 350.0 300.0 284.5 275.8 35.0% 30.0% 250.0 25.0% 200.0 17.3% 20.0% 150.0 12.8% 12.3% 11.7% 13.7% 15.0% 100.0 10.0% 50.0 5.0%
Slide 13: Balance Sheet Remains Robust
BALANCE SHEET REMAINS ROBUST For personal use only Key Balance Sheet items and ratios*1 WORKING CAPITAL NZ $m Jan 25 Jan 24 Jul 24 • Progressing towards long-term net working capital target 18% of sales. Net working capital 192.6 226.2 198.3 • Jan 25 inventory balance includes c.+$12m increase YOY f
Slide 14: Inventory Reducing
INVENTORY REDUCING For personal use only GROUP INVENTORY 300.0 318.8 313.6 303.7 249.6 200.0 229.6 100.0 0.0 Jan 21 Jan 22 Jan 23 Jan 24 Jan 25 Jan 26 Jul 26 Target Target • Inventory positions continue to moderate back towards historical levels. • Inventory composition continues to improve. Decreas
Slide 15: Working Capital and Net Debt Cycle
WORKING CAPITAL AND NET DEBT CYCLE For personal use only GROUP NET WORKING CAPITAL HALF-YEAR CYCLE 280.0 240.0 244.4 • January net working capital balances are traditionally elevated 200.0 219.7 226.2 as stock to support Kathmandu’s Southern Hemisphere 207.0 198.3 160.0 187.3 192.6 Autumn / Winter s
Slide 16: Cash Flow
CASH FLOW For personal use only Cash Flow (NZ $m) 1H FY25 1H FY24 NPAT (20.7) (9.7) Change in working capital (1.5) (13.5) Non-cash items 68.0 65.4 Operating cash flow 45.8 42.2 Adjusted operating cash flow *1 (0.8) (2.9) Key Line Items: 1H FY25 1H FY24 Net interest paid (including facility fees) *1
Slide 17: Brand Financial Performance
For personal use only SECTION 3 BRAND FINANCIAL PERFORMANCE 17 1 H F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 18: Rip Curl Profit & Loss
RIP CURL PROFIT & LOSS For personal use only NZ $m 1H FY25 1H FY24 Var % SALES IMPACTED BY WHOLESALE CUSTOMER CAUTION SALES 278.5 278.3 0.1% • Total sales +0.1% YOY in 1H FY25, improving from -6.7% during Q1 to +6.5% during Q2. *1 EBITDA (underlying ) 23.6 27.4 (14.0%) • Difficult trading in the bro
Slide 19: Kathmandu Profit & Loss
KATHMANDU PROFIT & LOSS For personal use only NZ $m 1H FY25 1H FY24 Var % IMPROVING QUARTERLY SALES TREND SALES 156.8 152.3 3.0% • Total sales +3.0% YOY in 1H FY25, improving from -2.7% during Q1 to +6.9% during Q2. Brand foundations in place, and momentum building. EBITDA (underlying*1) (12.8) (8.3
Slide 20: Oboz Profit & Loss
OBOZ PROFIT & LOSS For personal use only NZ $m 1H FY25 1H FY24 Var % SALES IMPACTED BY WHOLESALE CUSTOMER CAUTION SALES 35.6 38.0 (6.3%) • Total sales -6.3% YOY. • Online sales +32.8% grew strongly over the Black Friday and Christmas EBITDA (underlying*1) (2.2) (0.1) - promotions, reinforcing the gr
Slide 21: Focus and Outlook
For personal use only SECTION 4 FOCUS AND OUTLOOK 21 1 H F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 22: Kathmandu Brand Progress
KATHMANDU BRAND PROGRESS: For personal use only reenergising our reinvigorating our to improve our PRODUCT BRAND CONSUMER range experience • Focused range solidifying our leadership • Reinvested in above the line media with • Improved visual merchandising to in hike and adventure travel, and refresh
Slide 23: Continued Brand Innovation
CONTINUED BRAND INNOVATION For personal use only RIP CURL: EDDIE WENT KATHMANDU: SUSTAINABLE INNOVATION OBOZ: KATABATIC LT • Rip Curl’s latest partnership, The Eddie Aikau The women’s Seeker 4-inch shorts are: • Lighter, faster, further. Oboz’s lightest and Big Wave Invitational, took place in monst
Slide 24: Focus Areas and Outlook
FOCUS AREAS AND OUTLOOK For personal use only TRADING UPDATE FOCUS AREAS • DTC sales (including online) for the first 7 full weeks to 16 March 2025, a seasonally non-significant trading period for both brands: • Kathmandu +5.2% YOY*1. Gross margin is under pressure YOY due to increased Stabilise sal
Slide 25: Questions
For personal use only QUESTIONS 25 1 H F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 26: Appendices
For personal use only SECTION 5 APPENDICES 26 1 H F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 27: Appendix 1: Statutory to Underlying Profit & Loss
APPENDIX 1: STATUTORY TO UNDERLYING For personal use only PROFIT & LOSS GROUP 1H FY25 1H FY24 SaaS Amortisation of Amortisation of IFRS 16 Capitalisation Customer IFRS 16 Customer NZ $m Statutory Underlying Statutory Underlying Leases *1 Restructuring *2 Adjustments *3 Relationships *4 Leases *1 Rel
Slide 28: Appendix 2: Segment Note
APPENDIX 2: SEGMENT NOTE For personal use only 1H FY25 1H FY24 SALES (NZ $'000) Rip Curl Kathmandu Oboz Corporate Total Rip Curl Kathmandu Oboz Corporate Total SALES per segment note 278,487 156,831 35,627 - 470,945 278,315 152,324 38,005 - 468,644 SALES (Underlying) 278,487 156,831 35,627 - 470,945
Slide 29: Appendix 3: Balance Sheet
APPENDIX 3: BALANCE SHEET For personal use only Balance Sheet (NZ $m) Jan 25 Jan 24 Jul 24 Inventories 303.7 313.6 266.9 Property, plant and equipment 83.6 84.7 86.5 Right of Use Asset (IFRS 16) 261.6 257.5 262.6 Intangible assets 671.1 696.2 666.9 Other assets 124.8 119.4 120.8 Total assets (excl.
Slide 30: Important Notice and Disclosure
IMPORTANT NOTICE AND DISCLOSURE For personal use only This presentation prepared by KMD Brands Limited (the “Company” or the “Group”) (NZX/ASX:KMD) provides additional comment on the financial statements of the Company, and accompanying information released to the market. As such, it should be read