Slide 1: Q2 2023 presentation
Kid ASA – Q2 report Kid ASA: Quarterly Report 1 Q2 2023 presentation
Slide 2: Financial summary
Financial summary Second quarter in brief • Challenging retail market, improved development throughout the quarter • Group revenues decreased by -0.8% (+8.8%). In constant currency: • Group revenues decreased by -2.5% (+8.0%) • LFL revenues decreased by -3.3% (+5.6%) • Online revenues increased by +
Slide 3: Operational focus
Operational focus • “Atelier” by Camilla Pihl launched as a new collection in May. The high-end collection was well received by customers in Kid Interior with revenues of MNOK 3.5 during the quarter • Revenues from the Extended assortment of MNOK 10.8 in the quarter • Available online, in pilot stor
Slide 4: Operational focus
Operational focus • Several improvements to our online platform implemented, including a chatbot, to further strengthen the shopping experience • As one of the first retailers in the Nordics, the Scienced Based Target initiative (SBTi) has approved our net-zero science-based target during the quarte
Slide 5: Revenues
REVENUES MNOK Revenues 1 109 405 730 724 735 605 605 Group revenues Q2 decreased by -0.8% (+8.8%) 275 273 277 238 220 • In constant currency: 703 386 456 451 458 367 • Group revenues decrease of -2.5% (+8.0%) • Group like-for-like revenues decrease of -3.3% (+5.6%) including online sales 2022 2023 2
Slide 6: Gross margin
Gross margin Gross margin positively affected by normalised freight costs GROUP GROSS MARGIN • Group gross margin was 62.2% for the quarter, up by 2.2 pp % compared to Q2-22 • Kid Interior gross margin increased by 3.1 pp to 63.1% (60.0%) • Hemtex gross margin increased by 0.7 pp to 60.7% (60.0%) 62
Slide 7: OPEX
OPEX MNOK OPEX 285 335 283 260 272 267 159 122 122 OPEX-TO-SALES OF 51.1% (47.3%) 107 116 122 • Employee benefit expenses increased by MNOK 6.4 153 161 156 162 176 144 • Increased staffing at HQ and general salary increase 2022 2023 2022 2023 2022 2023 2022 2023 • Increased Logistics due to own empl
Slide 8: EBITDA
EBITDA MNOK 297 89 168 167 143 110 50 45 57 47 208 34 5 118 121 96 76 52 2022 2023 2022 2023 2022 2023 2022 2023 Q1 Q2 Q3 Q4 Kid Interior Hemtex 8 Kid ASA – Q2 report
Slide 9: Cashflow
Cashflow MNOK Satisfactory financial position and liquidity • Cash flow from operations improved due to • Less corporate tax paid • Positive effect from inventory build-down in Q2-23 • Positive effect from other provisions due to increased goods in transit • Cash flow from investments reflects CAPEX
Slide 10: Store portfolio activity
NUMBER OF STORES PER QUARTER END Store portfolio activity Per quarter end 273* Completed 2023 Signed, but not yet completed NO: Rørvik (Q4 23) NO: Trondheim Torg NO: Grünerløkka (Q2 25) 104* New stores FI: Lippulaiva, Espoo NO: Fredrikstad (Q4 24) SE: Burlöv (Q4 23) 7 NO: 1 store Closures SE: 1 stor
Slide 11: Establishment of one central warehouse in Sweden
Establishment of one central warehouse in Sweden • Kid ASA has decided to initiate an expansion of the warehouse facilities in Borås (Sweden) for the purpose of establishing one central warehouse for all markets with capacity for further growth. • The expansion is dependent on approval from the muni
Slide 12: Outlook
Outlook • Gross margin is expected to continue to normalise due to a combination of price adjustments and normalised freight rates. We reiterate our financial objectives with a normalised gross margin for the full year 2023 • The launch of the Extended concept is considered successful in Norway, bot
Slide 13: Q&A
Kid ASA – Q2 report Kid ASA: Quarterly Report 13 1 Q&A
Slide 14: Segment: Kid Interior
Segment: Kid Interior KID Interior (Amounts in NOK millions) Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022 Revenue 450,7 455,5 836,6 822,3 1 983,6 Revenue growth -1,8% 8,9 % 1,7 % 10,5 % 5,3 % LFL growth including online sales -2,0% 5,8 % 0,5 % 7,9 % 3,2 % COGS -166,4 -182,2 -338,6 -323,9 -828,0 Gross pro
Slide 15: Segment: Hemtex
Segment: Hemtex Hemtex (Amounts in NOK millions) Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022 Revenue 273,4 274,6 492,9 512,4 1 194,4 Revenue growth ¹ -4,8% 8,8 % -7,7% 6,9 % 3,2 % LFL growth including online sales ¹ -5,4% 5,2 % -5,9% 3,7 % 2,8 % COGS -107,4 -109,9 -201,5 -202,7 -503,6 Gross profit 166,0
Slide 16: Income statement
Income statement (Amounts in NOK thousand) Q2 2023 Q2 2022 H1 2023 H1 2022 FY 2022 Revenue 724,1 730,1 1 329,5 1 334,7 3 178,0 COGS -273,8 -292,1 -540,0 -526,6 -1 331,6 Gross profit 450,3 438,0 789,5 808,1 1 846,4 Gross margin (%) 62,2 % 60,0 % 59,4 % 60,5 % 58,1 % Other operating revenue 1,0 1,8 1,
Slide 17: Statement of financial position
Statement of financial position (Amounts in NOK thousand) Note 30.06.2023 30.06.2022 31.12.2022 (Amounts in NOK thousand) Note 30.06.2023 30.06.2022 31.12.2022 Assets Unaudited Unaudited Audited Equity and liabilities Unaudited Unaudited Audited Goodwill 9 68 662 66 801 65 479 Trademark 9 1 512 694
Slide 18: Allocated segment costs
Allocated segment costs Total year Total year (MNOK) Q1 2023 Q1 2022 Q2 2023 Q2 2022 Q3 2023 Q3 2022 Q4 2023 Q4 2022 2023 2022 Kid ASA and Kid Interior Segment allocated employee benefits 4,2 3,3 4,0 4,0 4,0 3,9 8,2 15,2 expense Segment allocated other operating 0,5 0,6 0,5 0,6 0,5 0,5 0,9 2,1 expen
Slide 19: Quarterly revenue growth
Quarterly revenue growth Group Total growth Year Q1 Q2 Q3 Q4 2021 10,4 % 3,9 % 3,6 % 2,5 % 2022 9,3 % 8,8 % 0,5 % 2,1 % 2023 -1,3 % -2,5 % Like-for-like growth Year Q1 Q2 Q3 Q4 2021 9,3 % 2,9 % 0,1 % 0,2 % 2022 7,3 % 5,6 % -0,4 % 1,8 % 2023 -0,3 % -3,3 % Kid Interior Hemtex Total growth Total growth
Slide 20: Sales days and stores
Sales days and stores Kid Interior Hemtex Number of sales days Number of sales days Year Q1 Q2 Q3 Q4 Total Year Q1 Q2 Q3 Q4 Total 2022 76 72 79 81 308 2022 89 90 92 91 362 2023 77 71 148 2023 89 90 179 Number of store projects Number of store projects 2022 Q1 Q2 Q3 Q4 Total 2022 Q1 Q2 Q3 Q4 Total Ne
Slide 21: Logistic costs – Sweden
Logistic costs – Sweden Logistic costs - Sweden Total year Total year (MSEK) Q1 2023 Q1 2022 Q2 2023 Q2 2022 Q3 2023 Q3 2022 Q4 2023 Q4 2022 2023 2022 Employee benefits expense 2.2 2.2 Third-party logistics expense 12.1 10.5 1.7 10.9 12.4 15.4 13.9 49.1 Central warehouse expenses 2.0 1.7 9.9 2.0 1.6