KMD Brands Ltd (ASX:KMD)

Half Year 2025 KMD Brands Ltd Earnings Call Transcript

Mar 25, 2025 / 09:30 PM GMT

Release Date Price: A$5.09 (+1.52%)

Transcript

Key Points

Positve

KMD Brands Ltd (ASX:KMD) achieved a 0.5% increase in total group sales compared to the previous year, with improving sales trends in the second quarter.
The company reported double-digit sales growth in the online channel for all three brands, highlighting the success of their digital strategy.
Net working capital efficiency improved significantly, with a reduction of $33.6 million year on year, and inventory levels moderated back towards historical levels.
KMD Brands Ltd (ASX:KMD) maintained a stable balance sheet with net debt reduced by $20 million from the previous year, providing significant funding headroom.
The company secured strategic partnerships, such as Kathmandu becoming the official apparel partner for the New Zealand team, enhancing brand exposure on the global stage.

Negative

The group reported a net loss after tax of $20.7 million, with an underlying net loss of $16.1 million, indicating financial challenges.
Gross margin decreased by 0.3% to 58.5%, with increased promotional intensity impacting profitability.
Operating expenses increased by 4.2% year on year, partly due to investments in brand advertising and product innovation.
Wholesale sales remained subdued, with accounts cautious on pre-season commitments, affecting overall sales recovery.
The company did not declare an interim dividend due to challenging market conditions and financial performance.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KMD.NZ - KMD Brands Ltd
Half Year 2025 KMD Brands Ltd Earnings Call
Mar 25, 2025 / 09:30PM GMT

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Presentation
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Unidentified_1 [1]
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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 2025 financial year. My name is Michael Daley, and I'm the CEO of the group. I'm joined joined on the call by Ben Washington, our interim group Chief Financial Officer. We will be talking through the presentation lodged on the NZX and ASX this morning. Unless otherwise specified, all financial numbers are in New Zealand dollars.

Today we'll begin with a summary of the key first half results. We will then discuss the group's financials and brand results. We'll conclude with a look at our focus areas, a trading update, and our outlook.

I will begin with a summary of the key first half

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