Kmd Brands Limited · NZX:KMD
Kmd Brands — FY2025 Earnings Presentation
40 slides from Kmd Brands's earnings presentation, Sep 25, 2025
Slide 1: FY25 Results Presentation
For personal use only FY25 RESULTS PRESENTATION 24 SEPTEMBER 2025 Brent Scrimshaw Carla Webb-Sear Group CEO & Managing Group CFO Director Ben Washington Deputy Group CFO
Slide 2: Outline
For personal use only OUTLINE 1. CEO INTRODUCTION……………………………… 3 2. GROUP FINANCIALS……………………………… 10 3. BRAND FINANCIALS……………………………… 17 4. ‘NEXT LEVEL’ STRATEGY……………………….. 21 5. FY26 TRADING AND OUTLOOK………………… 29 6. APPENDICES………………………………………. 33 2 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 3: CEO Introduction
For personal use only SECTION 1 CEO INTRODUCTION Brent Scrimshaw 3 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 4: Built for purpose
Built for purpose For personal use only Outdoor lifestyle and adventure Seasonally diverse Technical activity-based Technical activity-based Technical surf, beach apparel outdoor apparel and footwear and gear equipment 4 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 5: Global reach and diversification
GLOBAL REACH AND DIVERSIFICATION For personal use only We operate over 300 stores globally, and our brands are sold in over 8,000 locations EUROPE NORTH AMERICA ~$105m Sales 29 Owned Stores 10 Licensed Stores +1,900 Wholesale Doors ~$210m Sales 27 Owned Stores 26 Licensed Stores ASIA +3,900 Wholesal
Slide 6: CEO observations in my first days
CEO OBSERVATIONS IN MY FIRST 120 DAYS For personal use only INSIDE-OUT OUTSIDE-IN Solid market growth in categories and Consumer Consumers identify positively with our brands Market growth geographies Insufficient iconic product and innovation Product Volatility Volatile market dynamics continue cad
Slide 7: Introducing our KMD Brands 'Next Level' turnaround strategy
INTRODUCING OUR KMD BRANDS ‘NEXT LEVEL’ For personal use only TURNAROUND STRATEGY 1 2 3 A brand and product-led Efficient, scalable processes That delivers sustainable offence and data-led intelligence profitability 7 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 8: Financial summary
+1.0% YOY Sales $989.0m FY24 $979.4m For personal use only Gross -1.9% of sales Margin 1 56.5% FY24 58.4% Underlying -64.7% YOY $17.7m FY24 $50.0m EBITDA 2 FINANCIAL Underlying Statutory NPAT SUMMARY NPAT 2 -$28.3m -$93.6m Net working $40.6m lower YOY $157.7m Jul 24 $198.3m capital c. $235m headroom
Slide 9: Operational highlights
OPERATIONAL HIGHLIGHTS For personal use only • Launched the new Search GPS3 Surf and • Introduced revised product design DNA and • Collaborated with creative studio and taste- Tide watch, and the new Search GPS iOS brand standards, ensuring consistency across maker Blackbird Spyplane to release a PR
Slide 10: Group Financial Performance
For personal use only SECTION 2 GROUP FINANCIAL PERFORMANCE Carla Webb-Sear 10 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 11: Group profit & loss
GROUP PROFIT & LOSS For personal use only MIXED MARKET CONDITIONS GLOBALLY KMD BRANDS Statutory Underlying1 NZ $m2 FY25 FY24 FY25 FY24 Var % • Total sales +1.0% YOY for the full year, improving from +0.5% YOY in the first half. • Kathmandu’s third quarter sales were impacted by unseasonably warm wea
Slide 12: Mixed market conditions globally
MIXED MARKET CONDITIONS GLOBALLY For personal use only 35.0% 35.0% 35.0% YOY Sales Variance % by quarter YOY Sales Variance % by quarter YOY Sales Variance % by quarter 25.0% (Group NZD reporting currency) 25.0% (Group NZD reporting currency) 25.0% (Group NZD reporting currency) 15.0% 9.8% 15.0% 15.
Slide 13: Strong online sales growth
STRONG ONLINE SALES GROWTH For personal use only DIRECT TO CONSUMER SALES (NZ $m) Retail Stores Online Total DTC Sales Online % of DTC sales 900.0 35.0% 800.0 752.4 30.0% 684.2 702.1 700.0 663.9 629.6 25.0% 600.0 500.0 20.0% 16.3% 14.5% 13.6% 14.6% 400.0 13.2% 15.0% 300.0 10.0% 200.0 5.0% 100.0 0.0
Slide 14: Balance sheet
BALANCE SHEET For personal use only INVENTORY AT A THREE-YEAR LOW Key Balance Sheet items and ratios1 NZ $m Jul 25 Jan 25 Jul 24 • Group inventory balance reduced for the third successive year, as inventory positions continue to reduce towards optimal levels. Net working capital 157.7 192.6 198.3 •
Slide 15: Net debt at lowest point of last three years
NET DEBT AT LOWEST POINT OF LAST THREE YEARS For personal use only NET DEBT AND LIQUIDITY1 HISTORY (NZ $m) Facility Net Debt Leverage Ratio 10.000 300 • Significant funding headroom c. $235m at 31 July 2025. 8.000 250 • The Group continues to have a strong active working relationship 6.000 with, and
Slide 16: Positive cash flow
POSITIVE CASH FLOW For personal use only Cash Flow (NZ $m) FY25 FY24 NPAT (93.6) (48.3) Change in working capital 42.6 28.7 Non-cash items 177.1 164.2 Operating cash flow 126.2 144.7 Adjusted operating cash flow 1 32.9 53.4 Key Line Items: FY25 FY24 Net interest paid (including facility fees) 1 (12.
Slide 17: Brand Financial Performance
For personal use only SECTION 3 BRAND FINANCIAL PERFORMANCE Carla Webb-Sear 17 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 FY25 FY24 Var % SALES TREND IMPROVING • Total sales +2.1% YOY for the full year, improving from +0.1% YOY in the first half. SALES 550.4 538.9 2.1% • Online sales +10.2% to $41.7m, comprising 12.5% of DTC sales. EBITDA (underlying1) 30.6 42.0 (27.0%
Slide 19: Kathmandu profit & loss
KATHMANDU PROFIT & LOSS For personal use only NZ $m FY25 FY24 Var % SALES RETURNED TO POSITIVE GROWTH IN THE FOURTH QUARTER SALES 361.9 361.1 0.2% • Total sales +0.2% YOY for the full year, improving from -8.8% YOY in the third quarter to +2.5% YOY in the key fourth quarter winter trading period. EB
Slide 20: Oboz profit & loss
OBOZ PROFIT & LOSS For personal use only NZ $m FY25 FY24 Var % SALES TREND IMPROVING • Total sales -3.5% YOY for the full year, improving from -6.3% YOY in the first half. SALES 76.6 79.4 (3.5%) • Online sales +18.3% grew strongly during key online promotional periods, reinforcing EBITDA (underlying
Slide 21: 'Next Level' Transformation Strategy
For personal use only SECTION 4 ‘NEXT LEVEL’ TRANSFORMATION STRATEGY Brent Scrimshaw 21 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 22: 'Next Level' transformation
For personal use only ‘NEXT LEVEL’ TRANSFORMATION • A brand-led offence enabled by the right level of central support and capability. • A proactive plan that reboots growth with the right profitability. • An immediate right-sizing of our cost base, with ambitions for ongoing cost efficiencies. • Key
Slide 23: We have already started to execute against the 'Next Level' strategy
WE HAVE ALREADY STARTED TO EXECUTE For personal use only AGAINST THE ‘NEXT LEVEL’ STRATEGY 1 2 3 A brand and product-led Enabled through intelligent That delivers sustainable offence decisions and processes profitability • Connected consumer experiences • Brand decisions are informed and • Cost just
Slide 24: KMD Brands strategy house FY26 - FY28
KMD BRANDS STRATEGY HOUSE FY26 - FY28 For personal use only 24 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 25: Priority strategic initiatives
WE HAVE SET CLEAR PRIORITY STRATEGIC INITIATIVES THAT For personal use only GUIDE OUR OBSESSIVE FUTURE FOCUS ON EXECUTION Growth Enabling Financial Guardrails / Profitability-driven Working Capital Focus Data-driven Decision Intelligence Balance Sheet Deleverage 25 F Y 2 5 R E S U LT S P R E S E N T
Slide 26: Priority strategic initiatives
WE HAVE SET CLEAR PRIORITY STRATEGIC INITIATIVES THAT For personal use only GUIDE OUR OBSESSIVE FUTURE FOCUS ON EXECUTION Reset brand on youthful Accelerated product strategy More with the core energy Integrated marketplace and Accelerate ‘fast’ category Global product simplification digital executi
Slide 27: Reset our cost base over next months
RESET OUR COST BASE OVER NEXT 12 MONTHS TO FUEL For personal use only GROWTH AND IMPROVE SHAREHOLDER RETURNS COST RESET Cost reset across the portfolio to mitigate cost pressure, whilst 1 self-funding strategic growth investments ~ $25M GROWTH 2 Focus on both short and medium-term growth INVESTMENT
Slide 28: Delivering our financial ambition over the next three years
DELIVERING OUR FINANCIAL AMBITION OVER THE NEXT THREE YEARS For personal use only ~60% <50% 10%+ <16% Gross Margin Operating Expense EBITDA2 Margin Net Working Capital % of Sales % of Sales GROSS MARGIN 1 OPERATING EXPENSES 1,2 EBITDA MARGIN 2 NET WORKING CAPITAL % of sales % of sales % of sales % o
Slide 29: FY26 Trading and Outlook
For personal use only SECTION 5 FY26 TRADING AND OUTLOOK Brent Scrimshaw 29 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 30: Trading update
TRADING UPDATE For personal use only • Total August 2025 sales were +10.5% above last year. • DTC sales for the first 7 full weeks to 14 September 20251 in a seasonally non-significant trading period: • Kathmandu +19.4% YOY, (same store sales +22.0% YOY), with targeted promotional intensity in a com
Slide 31: FY26 outlook
FY26 OUTLOOK For personal use only GROSS MARGIN • Group gross margin in the first half of FY26 is targeted at slightly above 2H FY25 as strategic promotional activity further improves inventory composition ahead of new product launches. Impact of US tariffs announced on 31 July 2025 are embedded in
Slide 32: Questions
For personal use only QUESTIONS 32 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 33: Appendices
For personal use only SECTION 6 APPENDICES 33 F Y 2 5 R E S U LT S P R E S E N TAT I O N
Slide 34: Appendix 1: Statutory to underlying profit & loss
APPENDIX 1: STATUTORY TO UNDERLYING For personal use only PROFIT & LOSS GROUP FY25 FY24 SaaS Amortisation Impairment and Amortisation IFRS 16 Capitalisation of Customer onerous Oboz IFRS 16 of Customer Oboz NZ $m Statutory Underlying Statutory Underlying Leases 1 2 Restructuring Adjustments 3 Relati
Slide 35: Appendix 2: Segment note
APPENDIX 2: SEGMENT NOTE For personal use only FY25 FY24 FY25 SALES (NZ $'000) Rip Curl Kathmandu Oboz Corporate Total Rip Curl Kathmandu Oboz Corporate Total SALES per segment note 550,444 361,940 76,631 - 989,015 538,910 361,081 79,424 - 979,415 SALES (Underlying) 550,444 361,940 76,631 - 989,015
Slide 36: Appendix 3: Balance sheet
APPENDIX 3: For personal use only BALANCE SHEET Balance Sheet (NZ $m) Jul 25 Jan 25 Jul 24 Inventories 254.0 303.7 266.9 Property, plant and equipment 75.3 83.6 86.5 Right of Use Asset (IFRS 16) 243.0 261.6 262.6 Intangible assets 626.1 671.1 666.9 Other assets 118.0 124.8 120.8 Total assets (excl.
Slide 37: Appendix 4: Diversified sales
APPENDIX 4: DIVERSIFIED SALES For personal use only SALES BY REGION (NZ $m) 1,103.0 922.8 979.8 979.4 989.0 FY21 FY22 FY23 FY24 FY25 Australia New Zealand North America Europe Rest of World SALES MIX FY25 8% 1% 7% Oboz Licensing / Royalties Rest of World 11% 28% Europe Wholesale BY BY BY BRAND CHANN
Slide 38: Appendix 5: Owned stores by brand
APPENDIX 5: OWNED STORES BY BRAND For personal use only RIP CURL OWNED STORE COUNT KATHMANDU OWNED STORE COUNT 172 177 172 170 169 169 165 160 162 160 162 161 162 160 158 158 160 162 155 155 156 156 Jul 20 Jan 21 Jul 21 Jan 22 Jul 22 Jan 23 Jul 23 Jan 24 Jul 24 Jan 25 Jul 25 Jul 20 Jan 21 Jul 21 Jan
Slide 39: Glossary
GLOSSARY For personal use only TERM DEFINITION TERM DEFINITION DTC sales Direct-to-consumer sales. Includes all sales from retail stores, online Net Working Capital Inventories plus current trade and other receivables less current trade and stores and marketplaces. other payables. EBIT Earnings befo
Slide 40: Important notice and disclosure
IMPORTANT NOTICE AND DISCLOSURE For personal use only This presentation prepared by KMD Brands Limited (the “Company” or the “Group”) To the maximum extent permitted by law, none of the Company, its subsidiaries, directors, (NZX/ASX:KMD) provides additional comment on the financial statements of the