KMD Brands Limited Analysis

Overview

Kathmandu, a certified B Corp, was founded in 1987 in New Zealand and specialises in quality clothing and equipment for travel and adventure. Oboz, which became part of the group in 2018, is based in North America and designs ‘True to the Trail’ outdoor footwear to help people explore the wilderness. Rip Curl, acquired in 2019, is a leading global surf brand born in Bells Beach, Australia in 1969.

With a shared focus on expertly designed, technical and sustainable products, all three brands are distributed through wholesale, retail and digital channels.

On 19 October 2009 the company, then named Kathmandu Holdings Limited, announced an Initial public offering for fully paid ordinary shares to be listed on ASX and NZX under the code KMD.

On 16 March 2022, the company changed its name to KMD Brands Limited.

Performance

The following information was extracted from KMD Brands Limited's Full Year Results, released 25 September 2024:

FY24 financial summary (vs FY23):

• Group sales down -11.2% to $979.4 million.
• Gross margin down -0.2% of sales to 58.9%.
• Underlying operating expenses (1) $19.6 million lower year-on-year (“YOY”), down -3.6%.
• Underlying EBITDA (1) $50.0 million, down -52.8% YOY due to lower sales.
• Statutory NPAT loss -$48.3 million including a one-off non-cash impairment of Oboz goodwill of $40.3 million. Underlying NPAT (1) loss -$1.1 million.
• Net Working Capital $198.3 million, -$21.4 million lower YOY.
• Net Debt $59.7 million, with significant funding headroom of approximately $230 million.
• No final dividend declared as a result of FY24 operating performance and challenging market conditions.