Kmd Brands Limited · NZX:KMD
Kmd Brands — 1H FY26 Earnings Presentation
54 slides from Kmd Brands's earnings presentation, Mar 31, 2026
Slide 1: Creating a Stronger KMD Brands
CREATING A STRONGER KMD BRANDS 31 MARCH 2026
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by KMD Brands Limited (KMD) in relation to an offer of new shares in KMD (New Shares) by way of a placement to eligible institutional and other selected investors (Placement) and a 1-for-0.73 pro rata renounceable accelerated entitl
Slide 3: Important Notice and Disclaimer (cont.)
IMPORTANT NOTICE AND DISCLAIMER (CONT.) Disclaimer To the maximum extent permitted by law, each of KMD, the joint lead managers and underwriters of the Offer and their respective related bodies corporate and affiliates including, in each case, their respective shareholders, directors, officers, empl
Slide 4: Important Notice and Disclaimer (cont.) - Forward-Looking Statements
IMPORTANT NOTICE AND DISCLAIMER (CONT.) Forward-Looking Statements This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of KMD, including the Outlook on slide 21. Forward-looking statements can generally be identifi
Slide 5: Important Notice and Disclaimer (cont.) - Pro Forma Information
IMPORTANT NOTICE AND DISCLAIMER (CONT.) Pro Forma Financial Information This presentation includes a pro forma balance sheet, KMD’s pro forma debt maturity profile, pro forma EBITDA and KMD’s pro forma liquidity and leverage, which have been adjusted to reflect the impact of the Offer, assuming it o
Slide 6: Contents
CONTENTS 1. EXECUTIVE SUMMARY 2. 1H FY26 RESULT AND FY26 OUTLOOK 3. UPDATE ON NEXT LEVEL TRANSFORMATION 4. EQUITY RAISING AND DEBT REFINANCING 5. KEY RISKS 6
Slide 7: Executive Summary
SECTION 1 EXECUTIVE SUMMARY 7
Slide 8: Creating a Stronger KMD Brands
CREATING A STRONGER KMD BRANDS 1 KMD Brands has returned to growth under new leadership in 1H FY26 2 Substantial progress achieved against strategic initiatives 3 Significant upside remains with improved capabilities supporting identified growth opportunities and stronger margins 4 High conviction i
Slide 9: We Are Making Strong Progress in Our 3-Year Next Level Journey
WE ARE MAKING STRONG PROGRESS IN OUR 3-YEAR NEXT LEVEL JOURNEY TRUSTED ICONIC BRANDS WHAT WE’RE DELIVERING WHAT’S NEXT IN OUR 3-YEAR JOURNEY $27.5M 15 10+ GROWTH ACROSS 60% 10% COST SAVINGS STORES SENIOR ALL TARGET TARGET ON TRACK FOR CLOSED LEADERSHIP GROSS EBITDA FY26 TO DATE CHANGES BRANDS MARGIN
Slide 10: Next Level Transformation Is Beginning to Deliver Results
NEXT LEVEL TRANSFORMATION IS BEGINNING TO DELIVER RESULTS EFFECTIVE GROSS MARGIN OVERALL INFLECTION IN MANAGEMENT AGAINST DIFFICULT IMPROVED PROFITABILITY WITH GROWTH ACROSS BRANDS MARKET BACKDROP & INVENTORY STRONG COST CONTROL CLEARING Sales growth % Group underlying gross margin % Group underlyin
Slide 11: Strengthening Our Balance Sheet to Focus on Execution
WE ARE STRENGTHENING OUR BALANCE SHEET TO FOCUS ON EXECUTION OF NEXT LEVEL STRATEGY KEY MESSAGES PRO FORMA IMPACT1 Net Debt (NZ$m) Strengthen KMD balance sheet with NZ$65m 94 equity raising (62) 32 Up to 2.5 year refinancing of debt facility Jan-26 Net Debt Jan-26 Net PF Jan-26 Net Debt Debt Lev
Slide 12: 1H FY26 Result and FY26 Outlook
SECTION 2 1H FY26 RESULT AND FY26 OUTLOOK 12
Slide 13: Early Momentum in Next Level Turnaround
EARLY MOMENTUM IN NEXT LEVEL TURNAROUND 1H FY26 RESULT SNAPSHOT1 KEY TAKEAWAYS Group sales growth achieved in both the wholesale and direct-to-consumer channels $505M +7.3% SALES SALES GROWTH Gross margin reflecting near-term impact of marketplace and channel management 56.8% 54.5% GROSS MARGIN
Slide 14: Group Profit & Loss
GROUP PROFIT & LOSS KMD BRANDS Statutory Underlying1 GROUP SALES MOMENTUM NZ $m 2 1H FY26 1H FY25 1H FY26 1H FY25 Var % • Total sales +7.3% YOY, with solid growth achieved in both the direct-to-consumer (“DTC”) and wholesale channels. SALES 505.4 470.9 505.4 470.9 7.3% • Kathmandu achieved strong DT
Slide 15: Kathmandu Profit & Loss
KATHMANDU PROFIT & LOSS NZ $m 1H FY26 1H FY25 Var % KATHMANDU LEADS GROUP SALES MOMENTUM SALES 176.1 156.8 12.3% • Total sales +12.3% YOY despite a net reduction of 4 stores, showing strong sales momentum throughout the first half, and improving from +2.5% YOY in the fourth quarter of last year. EBI
Slide 16: Rip Curl Profit & Loss
RIP CURL PROFIT & LOSS NZ $m 1H FY26 1H FY25 Var % STABLE GLOBAL DIVERSIFIED SALES SALES 291.4 278.5 4.6% • Total sales +4.6% YOY, helped by YOY movement in FX rates used to convert global sales to NZD reporting currency. On a constant currency basis, Rip Curl total sales were +0.3% above EBITDA (un
Slide 17: Oboz Profit & Loss
OBOZ PROFIT & LOSS NZ $m 1H FY26 1H FY25 Var % SALES TREND IMPROVING SALES 38.0 35.6 6.5% • Total sales +6.5% YOY. EBITDA (underlying1) (1.1) (2.2) 52.5% • Online sales +0.9%, impacted by lower closeout inventory levels YOY. In the second half, the EBITDA margin % -2.8% -6.3% website will move onto
Slide 18: Balance Sheet
BALANCE SHEET Key Balance Sheet items and ratios1 INVENTORY AT A THREE-YEAR LOW NZ $m Jan 26 Jan 25 Jul 25 • Group inventory balance reduced for the third successive year, as inventory positions continue to reduce towards optimal levels. Net working capital 179.2 192.6 157.7 • Inventory obsolescence
Slide 19: Cash Flow
CASH FLOW Cash Flow (NZ $m) 1H FY26 1H FY25 GROUP NET WORKING CAPITAL HALF-YEAR CYCLE NPAT (13.1) (20.7) 280.0 Change in working capital (21.3) (1.5) 240.0 244.4 Non-cash items 60.0 68.0 200.0 219.7 226.2 207.0 198.3 192.6 Operating cash flow 25.6 45.8 160.0 179.2 120.0 157.7 Adjusted operating cash
Slide 20: Trading Update
TRADING UPDATE Direct-to-consumer same store sales (including online) for the first six full weeks of the second half from Monday 2 February to Sunday 15 March 20261 in a seasonally non-significant trading period: • Kathmandu +11.1% YOY, combined with gross margin improvement YOY of c. +50 bps (+0.5
Slide 21: Outlook
OUTLOOK Given early momentum in its Next Level turnaround strategy and despite a challenging global consumer operating environment, the Group remains focused on delivering continued performance improvement compared to prior year. BRAND GROWTH AND GROSS MARGIN • Kathmandu continued its recent sales m
Slide 22: Update on Next Level Transformation
SECTION 3 UPDATE ON NEXT LEVEL TRANSFORMATION 22
Slide 23: Delivering on What We Said in the First 6 Months
WE HAVE BEEN DELIVERING ON WHAT WE SAID IN THE FIRST 6 MONTHS OF OUR 3-YEAR NEXT LEVEL JOURNEY WHAT WE SAID WHAT WE’RE DELIVERING WHAT IS NEXT ON OUR 3-YEAR JOURNEY Reboot growth at right Inflection to growth for all brands in 1H FY26 with effective gross margin ► Deliver sustainable brand growt
Slide 24: Increased Conviction in Next Level Transformation Strategy
INCREASED CONVICTION IN NEXT LEVEL TRANSFORMATION STRATEGY 1 2 3 A brand & Efficient, scalable Delivering product-led processes and sustainable offence decision profitability intelligence Adding new capabilities to Reset cost base with Delivering growth across all fuel growth & drive focused gross m
Slide 25: Global Platform Built Around Three Technical, Purpose Driven Brands
1 GLOBAL PLATFORM BUILT AROUND THREE TECHNICAL, PURPOSE DRIVEN BRANDS STRONG BRAND RELEVANCE DRIVEN BY PURPOSE • Strong awareness of all brands • Kathmandu is known and trusted for outdoor adventure • Rip Curl has a deep connection and credibility in core surf • Oboz is authentic to the trail POSITI
Slide 26: Initiatives to Drive Next Level at Kathmandu
1 INITIATIVES TO DRIVE NEXT LEVEL AT KATHMANDU BRAND HOW WE WILL MEASURE STRATEGY WHAT HAS BEEN SET IN MOTION WHAT IT ENABLES SUCCESS • Seasonal product assortments Fresh product flow and innovation Accelerated Product relevance, brand buzz product strategy • Limited-quantity ranges on faster time
Slide 27: Initiatives to Drive Next Level at Rip Curl
1 INITIATIVES TO DRIVE NEXT LEVEL AT RIP CURL BRAND HOW WE WILL MEASURE STRATEGY WHAT HAS BEEN SET IN MOTION WHAT IT ENABLES SUCCESS • “Next Gen” focus across brand, athletes and product Youthful brand Clear, authentic surf brand with Brand resonance and energy reset modern appeal with younger dem
Slide 28: Initiatives to Drive Next Level at Oboz
1 INITIATIVES TO DRIVE NEXT LEVEL AT OBOZ BRAND HOW WE WILL MEASURE STRATEGY WHAT HAS BEEN SET IN MOTION WHAT IT ENABLES SUCCESS More with Fresher range for rugged, comfort- Deeper penetration with Oboz • Accelerated core product innovation to market earlier the core focused customers premium part
Slide 29: Digital Platform Changes to Drive Growth Across Omni-Channel Model
1 DIGITAL PLATFORM CHANGES TO DRIVE GROWTH ACROSS OMNI-CHANNEL MODEL THE OPPORTUNITY FY26 ACTIONS WHAT’S NEXT Online sales penetration (%) Leverage recent Shopify and D365 2 implementation to improve consumer ~15-25% experience and drive conversion Brand concept calendar Reset product assortment,
Slide 30: Improved Capabilities and Technology in Place to Drive Integrated Execution
2 IMPROVED CAPABILITIES AND TECHNOLOGY IN PLACE TO DRIVE INTEGRATED EXECUTION WHAT HAS BEEN SET IN MOTION OR COMPLETED WHAT IT ENABLES • Identified and executed procurement savings Cost of goods sold reduction, product relevance, and faster Procurement trend response – Improved terms with manufa
Slide 31: On Track to Over-Deliver on FY26 Cost Savings
3 ON TRACK TO OVER-DELIVER ON FY26 COST SAVINGS ON TRACK TO DELIVER $27.5M OF COST SAVINGS, IMPROVEMENT ON THE $25M ANNOUNCED AT INVESTOR DAY IN SEPTEMBER 2025 30.0 27.5 5.9 25.0 4.5 20.0 15.0 6.6 10.0 5.0 10.5 - Restructure Marketing realignment Store optimisation Other FY26F cost savings 31
Slide 32: Disciplined Approach to Investment with ROI Focus
3 DISCIPLINED APPROACH TO INVESTMENT WITH ROI FOCUS UPDATE ON ANNOUNCED FY26 INVESTMENT COMMENTARY Strategic investment to 1 DIGITAL RESET $2.3m support growth and profitability 2 PRODUCT INNOVATION $1.5m Phased, self-funded 3 STORE NETWORK AND PERFORMANCE $4.8m model 4 INTEGRATED BUSINESS EXECU
Slide 33: Progressing with Planned Store Closures and Refining Store Portfolio
3 PROGRESSING WITH PLANNED STORE CLOSURES AND CONTINUING TO REFINE OUR STORE PORTFOLIO UPDATE ON ANNOUNCED CLOSURES REVIEW OF ADDITIONAL STORES • Stores are evaluated against clear criteria to determine the optimal Lease cost path for our store portfolio $4.2M $1.6M $5.8M savings • Our evaluation cr
Slide 34: Delivering Our Financial Ambition Over the Next Three Years
3 DELIVERING OUR FINANCIAL AMBITION OVER THE NEXT THREE YEARS ~60% <50% 10%+ <16% GROSS OPERATING EBITDA2 NET WORKING MARGIN EXPENSE MARGIN CAPITAL % OF SALES % OF SALES GROSS MARGIN 1 OPERATING EXPENSES 1,2 EBITDA MARGIN 2 NET WORKING CAPITAL % of sales % of sales % of sales % of sales 60.0% 10.0%
Slide 35: Equity Raising and Debt Refinancing
SECTION 4 EQUITY RAISING AND DEBT REFINANCING 35
Slide 36: Equity Raising Details
EQUITY RAISING DETAILS • Fully underwritten NZ$65.3 million equity raising (Offer), comprising: • 1 for 0.73 pro-rata accelerated renounceable entitlement offer to raise approximately NZ$58.5m (Entitlement Offer), and Offer size and • Placement to raise approximately NZ$6.8m (Placement) structure •
Slide 37: Equity Raising Details (cont.)
EQUITY RAISING DETAILS (CONT.) • Eligible Retail Shareholders will be invited to take up their entitlement in the Retail Entitlement Offer • Eligible Retail Shareholders seeking to participate in the Retail Entitlement Offer will only be able to do so electronically and should visit the offer websit
Slide 38: Equity Raising Timetable
EQUITY RAISING TIMETABLE General Date Announcement of Offer, and voluntary suspension continued on NZX and ASX Tuesday, 31 March 2026 Record date for the Offer 7:00pm NZDT (5:00pm AEDT) Wednesday, 1 April 2026 Placement and Institutional Entitlement Offer Placement and Institutional Entitlement Offe
Slide 39: Debt Refinancing Providing Stable Capital Structure
DEBT REFINANCING PROVIDING STABLE CAPITAL STRUCTURE REFINANCED DEBT FACILITY PROVIDES FUNDING STABILITY FOR KMD BRANDS TO EXECUTE STRATEGY DEBT REFINANCING OVERVIEW OF KEY TERMS UP TO ~$205M 2.5 1 Overview Debt facility of ~NZ$205m1 TOTAL DEBT YEAR CAPACITY FACILITY ~NZ$40m tranche maturing 30 J
Slide 40: Creating a Stronger KMD Brands
CREATING A STRONGER KMD BRANDS 1 KMD Brands has returned to growth under new leadership in 1H FY26 2 Substantial progress achieved against strategic initiatives 3 Significant upside remains with improved capabilities supporting identified growth opportunities and stronger margins 4 High conviction i
Slide 41: Key Risks
La Kathmandu’ SECTION 5 KEY RISKS * RIPCURL & KMD BRANDS
Slide 42: Key Risks
KEY RISKS This section outlines the key risks that KMD has identified which are relevant to investors in the Offer. These risks may affect the future operating and financial performance of KMD and the KMD share price. Like any investment, there are risks associated with an investment in KMD’s shares
Slide 43: Key Risks (cont.) - Project execution risk
KEY RISKS (CONT.) Project execution risk KMD is currently executing its 'Next Level' transformation strategy, which involves strategic projects including cost restructuring, store network optimisation, digital platform upgrades and supply chain improvements. There is a risk that these strategic proj
Slide 44: Key Risks (cont.) - Supply chain complexity
KEY RISKS (CONT.) Supply chain complexity / logistics disruption KMD faces the risk of inefficient, costly and delayed delivery of inventory or materials due to single points of failure across the supply chain, including major international suppliers and single country distribution centres, or logis
Slide 45: Key Risks (cont.) - Production costs and materials
KEY RISKS (CONT.) Increased production costs or reduced access to key materials KMD's sales and margins are exposed to movements in production costs, including materials, labour and factory costs. There is a risk of restricted availability of key resources and materials, which could increase costs o
Slide 46: Key Risks (cont.) - Inventory and pricing
KEY RISKS (CONT.) Inventory management KMD has an ambition to grow online sales; however, it is important that investment in stock keeps pace with order demand, which increases the risk to KMD's ability to effectively plan for emerging opportunities. KMD has implemented group oversight of inventory
Slide 47: Appendix A: Additional 1H FY26 Detail
APPENDIX A ADDITIONAL 1H FY26 DETAIL 47
Slide 48: Statutory to Underlying Profit and Loss
STATUTORY TO UNDERLYING PROFIT AND LOSS GROUP 1H FY26 1H FY25 SaaS Amortisation of SaaS Amortisation of IFRS 16 Capitalisation Customer IFRS 16 Capitalisation Customer NZ $m Statutory Underlying Statutory Underlying Leases 1 Restructuring 2 Adjustments 3 Relationships 4 Leases 1 Restructuring2 Adjus
Slide 49: Segment Note
SEGMENT NOTE 1H FY26 1H FY25 SALES (NZ $'000) Rip Curl Kathmandu Oboz Corporate Total Rip Curl Kathmandu Oboz Corporate Total SALES per segment note 291,423 176,072 37,953 - 505,448 278,487 156,831 35,627 - 470,945 SALES (Underlying) 291,423 176,072 37,953 - 505,448 278,487 156,831 35,627 - 470,945
Slide 50: Balance Sheet
BALANCE SHEET Balance Sheet (NZ $m) Jan 26 Jan 25 Jul 25 Inventories 274.1 303.7 254.0 Property, plant and equipment 74.4 83.6 75.3 Right of Use Asset (IFRS 16) 246.5 261.6 243.0 Intangible assets 647.9 671.1 626.1 Other assets 111.4 124.8 118.0 Total assets (excl. cash) 1,354.3 1,444.8 1,316.4 Net
Slide 51: Constant Currency Profit & Loss
CONSTANT CURRENCY PROFIT & LOSS Underlying KMD BRANDS Underlying1 at Constant Currency2 NZ $m3 1H FY26 1H FY25 Var % 1H FY26 1H FY25 Var % SALES 505.4 470.9 7.3% 488.4 470.9 3.7% GROSS PROFIT 287.1 273.0 5.2% 277.2 273.0 1.5% Gross margin 56.8% 58.0% 56.8% 58.0% OPERATING EXPENSES (275.6) (269.1) 2.
Slide 52: Appendix B: Selling Restrictions
APPENDIX B SELLING RESTRICTIONS 52
Slide 53: Selling Restrictions
SELLING RESTRICTIONS This document does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia and New Z
Slide 54: Selling Restrictions (cont.)
SELLING RESTRICTIONS (CONT.) SINGAPORE This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document or materials in connec