Full Year 2024 KMD Brands Ltd Earnings Call Transcript
Key Points
- Gross margin remained resilient at 58.9% despite sales challenges.
- Operating expenses were tightly controlled, reducing by $19.6 million.
- Net working capital decreased by 9.7%, with a significant $23.5 million reduction in inventory.
- Rip Curl and Oboz achieved record online sales, with Rip Curl reaching nearly $38 million.
- Kathmandu recorded sales growth in North America and Europe, indicating successful international expansion efforts.
- Sales declined by 11.2% compared to last year's record, reflecting ongoing weakness in consumer sentiment.
- The group's net loss after tax was $48.3 million, primarily due to a one-off noncash impairment of Oboz' goodwill.
- Kathmandu's total sales decreased by 14.5% year-on-year, with significant declines in both Australia and New Zealand.
- Wholesale sales for Rip Curl and Oboz were subdued, with wholesale customers reducing inventory holdings.
- The challenging macroeconomic environment and consumer sentiment negatively impacted overall trading conditions.
Good morning, everyone, and thank you for joining us for today's presentation of KMD Brands financial results for the 2024 financial year. My name's Michael Daly and I'm the CEO and Managing Director of the group. I'm joined in the call by Ben Washington, our Interim Group Chief Financial Officer. We will be talking through the presentation lodged on the NZX and ASX this morning.
Unless otherwise specified, all financial numbers are in New Zealand dollars. Today's presentation will begin with a summary of the key financial and operational results for FY '24. We will then discuss the group's financials, brand results and an update on Kathmandu. We'll conclude with our focus areas and outlook for FY '25.
I will begin with a summary of the key results for FY '24 and an overview of our group. Drawing your attention to slide 4 now. Sales were 11.2% below last year's record sales result, reflecting ongoing weakness in consumer sentiment. Sales declined for all three of our brands, cycling their
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