Kmd Brands Limited · NZX:KMD
Kmd Brands — H1 FY2018 Earnings Presentation
32 slides from Kmd Brands's earnings presentation, Mar 20, 2018
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Slide 3: Contents
For personal use only Contents PNOW AR UN Strategy update Result overview Key line items Segment results Cash Flow, Balance Sheet, Dividend Oboz acquisition, trading update, and outlook Questions . Appendix
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Slide 11: Result overview
2. Result overview 1H FY18 1H FY17 Var $ Var % GROSS PROFIT 129.7 121.0 8.7 7.2% Gross margin 63.5% 61.6% OPERATING EXPENSES (104.6) (99.5) 5.1 5.1% % of Sales 51.1% 50.7% EBITDA 25.1 21.5 3.6 16.7% EBITDA margin % 12.3% 11.0% EBIT*2 18.0 14.8 3.2 21.6% EBIT margin % 8.8% 7.5% ANS 1H FY18 NZD/AUD co
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For personal use only » » » » » » 1. Calculated on local currency sales results (not affected by year-on-year exchange rate variation) 2. Country sales totals exclude inter-company sales
Slide 14: Same store sales
3. Same Store Sales result ME STORE SALE! % at constant rates 6.6% » Same store sales: 4.3% 5.0% 1.9% +2.7% actual exchange rates 0.9% -0.8% constant exchange rates: » — Stores -1.9% » Online +13.9% New Zealan 4.8% 3.2% -6.3% WITH FY14 @1HFYIS mIHFY16 wIHFYI7 @1H FY18 Group: constant rates 5.4% Grou
Slide 15: Gross margin
3. Gross margin Las 62.8% 61.6% 63.3% MIHFY14 miHFYIS miHFY16 miHFYI7 m1HFY18 1H FY18 SHARE OF BUSINESS (GROSS PROFIT $) » Gross margin long-term target range 61% to 63% (Australasia) INTERNATIONAL 1.19% » Gross margin improvement from increased full price sell through combined with a higher average
Slide 16: Cost of doing business
3. Cost of doing business Ls OPERATING EXPENSES: +5.1% to $104.6m » Rent increase includes: » Rent increase from store relocations and new stores » Year-on-year exchange rate translation movement $1.3m » Other operating expenses: » Distribution centre labour efficiencies gained following FY17 invest
Slide 17: Earnings summary
3. Earnings summary 1, EBITDA $25.1m +16.7% 1H 1H 1H FY15 FY16 FY17 EBITDA % 3.8% 11.2% 11.0% EBIT YOY favourable exchange rate translation impact in 1H FY18 +$0.7m EBIT*' $18.0m +21.6% 1H 1H 1H FY15 FY16 FY17 EBIT % 0.3% 7.7% 7.5% 1H FY18 8.8% NPAT $12.3m +23.0% -1.8 1H 1H 1H FY15 FY16 FY17 NPAT %
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Slide 20: New Zealand
4. New Zealand SALES: -6.4% to $64.3m NZD $m » Gross margin increased 150bps / 1.5% of sales 64.3 » Total operating expenses (incl. depreciation): Same store sales growth -6.3% » 1H FY18 43.2% of sales » 1H FY17 40.3% of sales » 2 stores relocated BIT » 1 major store refurbishment n% 1H FY14 BIT (tr
Slide 21: International
4. International SALES: +96.0% to NZD $3.0m » Total operating expenses: 1H FY18 54.7% of sales 1H FY17 69.4% of sales » » Sales growth coming from wholesale and direct to consumer channels Gross margin from wholesale c. 40% Start-up promotional costs relating to the international direct to consumer
Slide 22: Cash Flow, Balance Sheet, Dividend
5. Cash Flow, Balance Sheet, Dividend FON
Slide 23: Cash Flow
5. Cash Flow LN. . . NZD $m 1H FY18 1H FY17 Capital expenditure $8.7m (LY $6.8m): NPAT 12.3 10.0 » Stores $7.2m (LY $3.9m) Change in working capital (3.5) (8.1) » 1 new store > 5 relocations Change in non-cash items 8.1 8.1 » 3 major refurbishments Operating cash flow 16.9 10.0 » Systems and Infrast
Slide 24: Balance Sheet
5. Balance Sheet LN. Stock Per Store ( Balance Sheet (NZD $m) 1H FY18 1H FY17 Inventories 84.2 96.4 $0.615 $0.634 gq 595 Property, plant and equipment 64.2 61.2 Intangible assets 283.1 277.0 Other assets. 6.2 8.1 Total assets (excl. cash) 437.7 442.7 1HFY14. 1HFYIS. 1HFYI6. 1HFY17__ 1HFY18 Net inter
Slide 25: Dividend
5. Dividend LN. » NZ 4.0 cents per share interim dividend (1H FY17 NZ 4.0 cps) ividends cents per share » Dividend will not be imputed for New Zealand shareholders B 12 » Dividend will be fully franked for Australian shareholders " 8 » Record date 8 June 2018 5 : 9 » Payment date 22 June 2018 a » Fi
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Slide 27: Oboz
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Slide 29: Trading update
6. Trading update For the six weeks ending 11 March 2018: » Total Group sales +7.9% above last year at constant exchange rates » Same store sales growth at constant exchange rates: » Group +7.0% » AU+7.5% » NZ +5.1% February 2018 gross margins +460 bps / 4.6% of sales above last year 29
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Slide 32: Appendix 1 - Reconciliation of segment EBIT trading results
Appendix 1- Reconciliation of segment EBIT trading results 1H FY18 ($’000) Australia New Zealand International EBIT per financial statements (NZD) 8,418 11,118 (207) (1,325) 18,004 Internal charges not trading related*! (NZD) 520 (520) - - - EBIT (trading result) (NZD) 8,938 10,598 (207) (1,325) 18,