KMD Brands Limited (KMD) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone and thank you for joining us for today's presentation of KMD Brand's financial results for the first half of the 2024 financial year. My name is Michael Daly and I am the CEO and Managing Director of the group. I'm joined on the call by Ben Washington, our Interim Group Chief Financial Officer. We'll be talking through the presentation lodged on the NZX and ASX this morning. Unless otherwise specified, all financial numbers are in New Zealand dollars. When it comes to questions, can phone participants please follow the instructions of the operator? Online participants may ask a question at any time during the presentation by clicking the ask a question button. And those questions will be addressed at the end of the presentation after the questions by phone are cleared. Today's presentation will begin with a summary of the key first half results. We will then discuss the group's financials, brand results, a strategy update, and a closer look at Kathmandu. We'll conclude with a trading update and then our outlook for the second half. I'll begin with a summary of the key first half results. Drawing your attention to slide four, sales were 14.5% below last year's record sales result, reflecting ongoing weakness in consumer sentiment. Sales declined for all three of our brands, cycling their strong sales growth achievements last year. Despite the challenges on sales, it was pleasing to see gross margin increasing and expenses and working capital reducing despite the inflationary environment. Gross margin remained resilient despite currency headwinds, improving 10 basis points year on year to 58.8%. Operating expenses were $15.8 million lower than last year despite continued inflation pressures. Operating expenses benefited from restructuring implemen...