Q2 2024 Kid ASA Earnings Call Transcript
Key Points
- Kid ASA (FRA:97Q) reported its fourth consecutive quarter of double-digit growth, reaching an all-time high revenue of NOK797.8 million.
- The company experienced a revenue growth of 12.4% in the first half of 2024 compared to the previous year.
- EBITDA increased to NOK201.5 million, with a strong margin of 63.2%, and EPS strengthened to NOK1.19.
- The customer loyalty program saw positive results, with membership reaching 3.2 million, a 10.4% increase from last year.
- Kid ASA is expanding its market reach by launching a German language website and an English language site targeting European countries, indicating potential growth beyond the Nordic region.
- The second half of 2024 faces tougher comparable growth due to a strong performance in the second half of 2023.
- The strong dollar and higher freight costs due to unrest in the Red Sea negatively impacted costs, although price adjustments have so far compensated.
- Cash flow from operations was impacted by a planned inventory buildup, which could affect liquidity.
- The company faces challenges in securing larger store locations with favorable lease terms, impacting expansion plans.
- The competitive landscape in Germany poses challenges as Kid ASA enters this new market with its e-commerce strategy.
Good morning and welcome to the second-quarter presentation for Kid. My name is Hanriette Trondsen, covering the consumer and some retail companies in Arctic. And with me, I have the CEO of Kid, Anders Fjeld, and CFO, Mads Kigen, which will take you through the presentation. (Event Instructions) Anders?
Yes, Hanriette. And everybody, good morning, and welcome to this presentation for our second quarter.
We are satisfied to present the fourth consecutive quarter with double-digit growth. The growth is attributed to continuously category and omnichannel development as well as project initiatives. This project involves refurbishment, relocation, and/or expansions of already existing stores. In Q2, we reached an all-time high revenue of NOK797.8 million.
In the first half of '24, we experienced a revenue growth of 12.4% compared to last year. Note that the first half of '23 was weak compared to '22 with a revenue decrease of 0.4%. The second
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