Q3 2024 Kid ASA Earnings Call Transcript
Key Points
- Kid ASA (LTS:0RCW) achieved an all-time high revenue of NOK 886.9 million in Q3, with notable growth in Kid Interiors.
- The company maintained a strong gross margin of 62.1%, one of the highest for the third quarter historically.
- New product categories introduced since 2022 contributed significantly to sales, enhancing the existing assortment and driving customer traffic.
- Kid ASA is investing in future growth with new store openings and expansions, including a significant new store in Oslo.
- The company reported a 6.7% revenue growth on a constant currency basis, driven by increased basket size and customer numbers in physical stores.
- EBITDA decreased by NOK 5 million to NOK 236.4 million, indicating some pressure on profitability.
- Hemtex experienced a revenue decline, aligning with expectations due to the previous year's extraordinary 50th-anniversary campaign.
- Operating expenses increased by 14.6% compared to last year, driven by higher employee benefit expenses and increased marketing costs.
- The online revenue share decreased slightly to 11.4%, indicating a potential challenge in maintaining digital sales growth.
- Inventory levels increased by 27% year-over-year, partly due to early delivery of goods and new category introductions, which could impact cash flow.
Welcome to the presentation, the program team so that the room at A ese do PP room at A ese Do.
Thank you.
Good morning, everybody and welcome to this Q3 presentation for Kid ASA we have delivered what I would like to say, a good quarter where he delivers strong numbers, but hemp has a tougher time reaching the 5th year campaign last year.
But all in all we are satisfied. And together with the Mads Kigen, our CFO, we will give you more insight into sorry, key drivers and explanation behind the numbers for the quarter Q3 was another strong quarter for the kid group. And then we reached an all time high revenue of NOK886.9 million with notable growth in kids interiors standing out the revenue decline in Hemtex aligns with our expectations and previous communications mainly due to the extraordinary and text 50 years campaign last year which particularly impacted the driving traffic to physical stores and online.
The gross margin was flat compared to last year at 62.1 one of the strongest margins we have seen
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