KMD - 1H FY2023 Interim Results

Wednesday 22nd March 2023

KMD Brands Limited (ASX/NZX: KMD , “KMD” or the “Company”) is pleased to announce its results for the six months ended 31 January 2023 (“1H FY23”).

1H FY23 key highlights (vs 1H FY22):

• Sales growth up 34.5% to $547.9 million, a record first half for KMD Brands

• Continued sales growth for Rip Curl, strong Australian recovery for Kathmandu, and record first half sales for Oboz

• Gross margin remains resilient, increasing +100 bps (1.0% of sales)

• Underlying EBITDA(1) of $45.3 million (1H FY22: $10.2 million) with group underlying EBITDA margin(1) improving on a rolling 12-month basis

• Statutory NPAT of $14.0 million; Underlying NPAT(1) of $16.5 million (1H FY22: loss of $5.1 million)

• Balance sheet remains strong, with expectation of inventory unwind to underpin strong cashflow generation in the second half

• Interim dividend of 3 cents per share declared (fully franked for Australian shareholders)

Commenting on the 1H FY23 results, Group CEO & Managing Director Michael Daly said:

“We are delighted with the results our team has delivered in 1H FY23, building on the strong momentum of the previous six months. We achieved record sales results for the Group, highlighting the strength of our global brands.”

"For the first time since Rip Curl was acquired, the Group has experienced a full 12 months of trade without significant interruption from the COVID pandemic, which resulted in group sales of over $1 billion.”

"Despite uncertainties in consumer outlook, all three of our brands – Rip Curl, Kathmandu, and Oboz – delivered strong sales growth in the half, and as a group we have improved our gross margin.”

“We were also very proud to recently announce that KMD Brands and all three of its brands are now Certified B Corporations, becoming one of the first multinational companies in Australia and New Zealand to have all its brands individually certified. This is testament to our commitment to setting ourselves high standards of social and environmental impact, accountability, and transparency.”

“With a healthy balance sheet, and expectations for strong cash flow generation in the second half, we are in an excellent position to execute on our growth strategy through expanding our global footprint, investing in digital platforms, leveraging operational excellence, and leading the industry through sustainability and innovation.”

The following are attached in relation to KMD Brands Limited's Interim Result for the period to 31 January 2023:

1. Results Announcement

2. Media Announcement

3. Interim Financial Statements for the six months ended 31 January 2023 and the Independent Auditors Review Report

4. Investors Presentation

5. Distribution Notice

Investor briefing

An investor call will be hosted by Michael Daly (Group CEO) and Chris Kinraid (Group CFO) at 8.30am AEDT / 10:30am NZDT today,

Wednesday 22 March 2023. For those wishing to participate, please dial one of the numbers below and provide the conference ID to the operator:

Australia Toll Free: 1800 590 693

New Zealand Toll Free: 0800 423 972

Conference ID: 445053

The webcast will be available on the KMD Brands investor website following the call.

- ENDS -

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