Q2 2025 Kid ASA Earnings Call Transcript
Key Points
- Kid ASA (FRA:97Q) achieved an all-time high revenue in the second quarter despite operational challenges.
- The launch of a new centralized warehouse in Sweden is a strategic investment expected to support future growth.
- The company reported a robust gross margin of 62.3%, which is strong from a historical perspective.
- Kid Interior segment performed particularly well, with a total revenue growth of 7.1%.
- The company completed 15 store projects in the quarter, fueling future like-for-like growth.
- Operational challenges from the warehouse transition led to lower stock inventory in stores and delayed online orders.
- Reported operating expenses increased by 13.7% due to the warehouse transition and other factors.
- There was a significant currency effect on operating expenses, impacting financial results.
- The company recognized an impairment of NOK25 million related to an unused warehouse, impacting financials.
- Low inventory levels are expected to continue into the third quarter, potentially impacting sales.
Hello and welcome to this second quarter webcast for KID hosted by Arctic Securities. With me today I have CEO, Marianne; and CFO, Mads. (Operator Instructions)
So with that, I hand the word over to you, guys.
Thank you, Lucia. Good morning, everyone, and welcome to our second quarter presentation. The quarter has delivered consistent revenue growth, and an all-time high revenue in second quarter despite some operational challenges associated with the warehouse relocation. And we are pleased with the gross margin performance this quarter.
The growth is primarily driven by strong performance in Kid Interior this quarter and during the second quarter, we have launched a new, in my opinion, state-of-the-art centralized warehouse in Sweden, serving the entire group. This is a major project to carry out and is expected to have short-term impacts on operation and cost, but the new warehouse is a strategic investment for our future growth.
Mads will
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