The financial summary for the first half of KMD Brands Limited (ASX: KMD ) fiscal year 2024 reveals significant impacts from various operational factors. Statutory results reflect the influence of IFRS 16 leases, while underlying results provide a clearer picture after excluding this impact. Despite a 14.5% decline in sales, there's a notable 10 bps improvement in gross margin, reaching AU$260.6 million. Operating expenses have decreased by 5.7%, amounting to AU$15.1 million. However, underlying EBITDA has seen a substantial drop of 66.8%, totaling $468.6 million.
Sales history reflects fluctuations across different brands and channels, with notable performances from Rip Curl and Kathmandu. While facing challenges in the consumer environment, efforts to control operating expenses have been effective, contributing to a resilient gross margin. The presentation also highlights brand-specific achievements, such as Rip Curl's success in the wetsuit market and Kathmandu's new loyalty program. Despite sales challenges, the company maintains a strong balance sheet, with a focus on reducing working capital and managing debt effectively, ensuring sufficient funding headroom for future endeavors.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
