Half Year 2026 KMD Brands Ltd Earnings Call Transcript
Key Points
- KMD Brands Ltd (KTHUF) has returned to growth under new leadership, showing strong early progress against strategic initiatives in the first half of FY26.
- The company announced a fully underwritten capital raise of $65 million and refinancing of its debt facility, aimed at strengthening the balance sheet and supporting ongoing transformation efforts.
- All three brands within the KMD portfolio have returned to growth, with Kathmandu showing particularly strong sales momentum.
- The company has achieved significant cost savings, delivering an additional $2.5 million in savings above the $25 million target for FY26.
- KMD Brands Ltd (KTHUF) has improved its inventory position and mix, optimizing working capital and freeing up resources for future growth.
- The company reported a statutory net loss after tax of $13.1 million for the first half of FY26.
- Gross margin decreased by 120 basis points year-on-year to 56.8%, reflecting challenges in balancing sales growth with margin achievement in a promotional marketplace.
- Rip Curl's sales growth has been modest, with challenges in the Australian market and a promotional marketplace impacting performance.
- The company is facing a challenging global consumer environment, with increased financial pressure on consumers and potential cost inflations.
- KMD Brands Ltd (KTHUF) has not declared an interim dividend due to operating performance and cash flow considerations.
Good morning, everyone, and thank you for joining us. Today, we're looking forward to taking you through our first half FY26 results and our outlook, and also provide an update on the significant progress we're making with our next-level group transformation.
My name is Brent Scrimshaw, and I'm the CEO of the group. And as usual, I'm joined on the call by Carla Webb-Sear, our Group Chief Financial Officer. We'll be talking through the presentation lodged on the NZX and ASX this morning, and unless otherwise specified, all financial numbers are in New Zealand dollars.
I'll begin with an overview of today's announcements before Carla takes you through the detail of our first half results and outlook, and I'll then provide a more comprehensive update on our transformation progress before handing back to Carla, who will step you through the details of the fully underwritten equity raise and long-term debt refinancing package that we're also announcing today.
So starting on slide 8, and today
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