KMD Brands Limited (ASX:KMD) Announces 1H FY25 Results
Financial Performance
KMD Brands Limited reported a 0.5% increase in revenue, reaching NZ$470.9 million for the six months ended 31 January 2025. However, the company experienced a net loss of NZ$20.7 million, a decline of 114.2% compared to the previous period. EBITDA also decreased by 74.3% to NZ$3.9 million. No interim dividend was declared due to the operating performance in 1H FY25.
Operational Highlights
The company’s direct-to-consumer channels, including online sales, showed significant growth, with all three brands achieving double-digit sales increases year-on-year. Despite the strong performance in the online segment, wholesale sales are recovering more slowly as accounts remain cautious on pre-season commitments. Forward orders and in-season buying from key accounts are expected to support an improving wholesale trend through 2025.
Executive Comments
Outgoing Group CEO Michael Daly stated, “Direct-to-consumer sales have improved for all three of our brands, while the wholesale market is taking longer to recover. Global monetary policy settings have been easing, but the return of consumer confidence will take time.” He added, “We are seeing short-term gross margin pressure for all brands in a highly competitive global market. However, our focus remains on growing gross margin in the medium-term as markets improve.” Incoming Group CEO Brent Scrimshaw commented, “I am excited to step into the KMD Brands Group CEO role and look forward to my transition with Michael over the next two weeks. We continue to focus on delivering positive sales growth, improving profitability, maximising cash flows, and reducing inventory.”
Outlook
KMD Brands Limited remains focused on growing gross margins and improving profitability as markets recover. The company is actively monitoring the impact of geopolitical uncertainties on consumer confidence and supply chains. With a portfolio of iconic global outdoor brands and a commitment to sustainability, KMD Brands positions itself as a unique investment proposition well-placed for future growth.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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