KMD kmd brands limited

Ann: HALFYR: KMD: KMD: 1H FY13 Media Announcement

  1. lightbulb Created with Sketch. 2
    					
    
    KMD
    26/03/2013 09:43
    HALFYR
    
    REL: 0943 HRS Kathmandu Holdings Limited
    
    HALFYR: KMD: KMD: 1H FY13 Media Announcement
    
    KATHMANDU HOLDINGS LIMITED
    ASX/NZX/Media Announcement
    26 March 2013
    
    Kathmandu Holdings announces FY13 first half year
    results:
      Sales up 13.1% to NZ$165.9m,
      EBIT up 24.4% to NZ$15.8m,
      NPAT up NZ$4.3m (72%) to NZ$10.3m.
    
    Kathmandu Holdings Limited (ASX/NZX: KMD) today announced earnings before
    interest and tax (EBIT) of NZ$15.8 million, for the half-year ended 31
    January 2013,an increase of $3.1 million compared with the prior
    corresponding period. Net profit after tax (NPAT) increased from NZ$6.0
    million to NZ$10.3 million for the same period.
    
    RESULTS OVERVIEW
    
    Half Year ending 31 January 2013
    1H FY13 / 1H FY12 / Growth NZ$m / Growth %
    Sales 165.9 / 146.7 / 19.2 / 13.1%
    Gross Profit 104.1 / 92.0 / 12.1 / 13.2%
    EBIT 15.8 / 12.7 / 3.1 / 24.4%
    NPAT 10.3 / 6.0 / 4.3 / 71.7%
    
    Kathmandu Holdings Limited Chief Executive Officer, Mr Peter Halkett said
    "there was strong sales growth over the period; underpinned by successful new
    store openings and a solid increase in same store sales, despite a
    challenging market
    overall. Operating expenses were reduced as a % of sales relative to 1H FY12,
    and this also contributed to 1H earnings growth."
    
    In the first half year of FY13 same store sales growth was 3.7% (6.1% at
    comparable exchange rates). Online sales growth (up over 50% on the same
    period last year)continued to be an important portion of this increase, but
    still represents less than 5% of total sales. The Company opened 9 new stores
    in the period, all in Australia, and relocated 3 stores. "Along with the
    continued growth in online sales, the new stores
    we opened in a variety of locations and formats have generally met or
    exceeded our sales expectations" said Peter Halkett.
    
    SALES, STORE NUMBERS AND GROSS PROFIT MARGIN
    
    Sales for half year ending 31 January 2013
    NZ $m 1H FY13 / % of Total / Total sales growth %*1 / Same store growth %*2
    Australia 103.5 / 62.4% / 21.5% / 9.6%
    New Zealand 59.0 / 35.6% / 7.9%  / 1.3%
    United Kingdom 3.4 / 2.0% / (4.7%) / (4.7%)
    Total 165.9 / 100.0% / 13.1% / 3.7%
    1 Calculated on local currency sales results (not affected by year-on-year
    exchange rate variation).
    2 Same store sales are for the 26 weeks ending 27 January 2013.
    Australia (9.6%) outperformed New Zealand (1.3%) in same store sales growth.
    
    Kathmandu's growing market penetration in Australia is a key factor in
    delivering improved same store sales growth, which compares to a 6.4%
    increase for the same period last year. In New Zealand, the reduced same
    store sales growth followed a
    12.7% increase in 1H FY12.
    
    Permanent stores open 31 January 2013
    1H FY13 / 1H FY12
    Australia 81 / 68
    New Zealand 42 / 40
    United Kingdom 6  /6
    Total Group 129 / 114
    
    Kathmandu opened nine new permanent stores in the period, all in Australia:
    o Stores opened were Carindale, Robina and Mackay in Queensland;
    Tuggerah, Coffs Harbour and Pitt St, Sydney in NSW; Fountain Gate in
    Melbourne; Morley Galleria in Perth; and Casuarina in Darwin.
    o Perth CBD, Richmond (Melbourne) and Nelson (NZ) stores were relocated
    during the period.
    o Knox and Highpoint (Melbourne) stores were refurbished.
    
    Half year ending 31 January 2013
    1H FY13 / 1H FY12
    Gross profit margin % 62.7% / 62.7%
    
    Gross profit margin was consistent with 1H FY12 and remained within
    Kathmandu's target range of 62% - 64%. Margins were flat in Australia and
    slightly reduced in New Zealand. In the UK, the lower gross margin is due to
    the higher discounting and
    greater clearance activity associated with the planned closure of our Berners
    St and Brighton stores.
    
    OPERATING COSTS
    Operating Expenses NZ $m & % of Sales(excluding depreciation) 1H FY13 / 1H
    FY12
    Rent 22.1m / 19.1m
    % of Sales 13.3% / 13.0%
    
    Other operating costs 61.1m / 55.9m
    % of sales 36.8% / 38.1%
    
    Total 83.2m / 75.0m
    % of sales 50.1% / 51.1%
    
    Kathmandu's operating expenses decreased by 100 bps as a % of sales. Rental
    expense as a % of sales increased primarily due to new flagship stores
    (Newmarket in Auckland, and Perth). Other expenses reduced as a % of sales as
    one off costs in 1H FY12, associated with brand refresh and the impact on
    distribution costs following the implementation of our core system upgrade,
    were cycled out. For the full year, operating costs as a % of sales are
    expected to be slightly reduced on FY12.
    
    "Active management of operating costs continues to be a key focus and
    Kathmandu expects to gain further efficiency improvements in the future" said
    Mr Halkett.
    
    EBITDA margin for the first half year increased from 11.6% to 12.6% and EBIT
    margin increased from 8.7% to 9.5%.
    
    OTHER FINANCIAL INFORMATION
    NZ $m Half year ending 31 January 2013
    1H FY13 / 1H FY12
    Capital Expenditure 10.7 / 10.3
    Operating Cashflow (5.6) / (17.9)
    Inventories 84.5 / 76.8
    Net Debt 81.0  /85.6
    Net Debt : Net Debt + Equity 23.0% / 25.1%
    
    We continue to improve our efficient management of major store capital
    projects and completed 14 of these projects in the period, compared to 10 in
    1H FY12.
    
    Total inventories increased in line with store growth by 10.0%, or NZ$7.7
    million and decreased by 1.7% on a $ per store basis. The effective
    management of working capital and improved operating cashflow meant that net
    debt as at 31 January
    decreased by 5.4% on the previous year. The ratio of net debt to net debt
    plus equity has decreased slightly at approximately 23.0%.
    
    INTERIM DIVIDEND
    Kathmandu confirms that an interim dividend of NZ 3 cents will be paid. The
    dividend will be fully franked and fully imputed.
    
    Future years' interim dividends for New Zealand shareholders are unlikely to
    be imputed given full year dividend payout levels will increase in line with
    profit growth, which is derived primarily from Australian operations.
    
    Final dividends are expected to remain fully franked and fully imputed.
    
    BOARD CHANGES
    The death of our Chairman, Mr James Strong, on March 3rd was a tragic loss,
    not just for the Company, but also the wider Australasian business, arts and
    sports communities. As a result of James Strong's untimely passing, John
    Harvey has been
    appointed as interim chairman for the period up until our next Annual General
    Meeting. During this period the Board will undertake a review of the make-up
    of the Board and determine a permanent appointment of a Chairman. Following
    the appointment of Christine Cross in December last year there remain 4
    independent Directors on the Board.
    
    FULL YEAR RESULTS OUTLOOK
    Kathmandu's overall earnings growth for the full year in FY13 is expected to
    be underpinned by the continuation of growth in the Australian market,
    attributable to improving brand penetration and the performance of new stores
    opened during the
    year. However the key external risks to delivering an improvement in second
    half year performance are:
    
      The success of the two major promotional events in the second half of the
    year, particularly if either or both are impacted by unseasonal weather;
      The general economic environment which appears to remain volatile and has
    been highlighted until recently by generally low levels of consumer
    confidence.
    
    Kathmandu's annual trading pattern means the overall profit result for the
    year depends primarily upon the second half year performance and in
    particular the Winter sale. Peter Halkett stated "Sales through February and
    March have been impacted by the hot and generally dry weather in both
    Australia and New Zealand. However, as we have only just commenced our Easter
    sale, which is the second of our three largest promotional events each year,
    it is still too early to assess with
    reasonably certainty the overall result for the full year".
    Kathmandu continues to target 15 new permanent stores in the full financial
    year.
    
    Five new permanent store locations are currently confirmed to be opened prior
    to 31 July 2013: The Glen (Melbourne), Eastgardens (Sydney), Hobart CBD,
    Pukekohe and Westgate (Auckland).
    
    In the UK during 2H FY13, two stores are to be closed (Berners St, London and
    Brighton) and one new store (Kensington High St, London) is to be opened.
    
    In concluding his assessment of the prospects for 2013 Peter Halkett said "I
    am confident in our ability to successfully execute Kathmandu's growth
    strategies. In particular the strength of our Australian performance in
    tandem with effective
    management of our operating costs should deliver a strong profit outcome for
    2013."
    
    For further information please contact:
    Mark Todd, Chief Financial Officer
    +64 3 3736115
    Media Enquiries to Helen McCombie, Citadel PR +61 2 9290 3033
    End CA:00234538 For:KMD    Type:HALFYR     Time:2013-03-26 09:43:38
    				
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
25.5¢
Change
0.010(4.08%)
Mkt cap ! n/a
Open High Low Value Volume
24.5¢ 26.5¢ 24.5¢ $173.6K 673.0K

Buyers (Bids)

No. Vol. Price($)
0 23005 25.5¢
 

Sellers (Offers)

Price($) Vol. No.
26.0¢ 55448 0
Last trade - 13.00pm 08/08/2025 (20 minute delay) ?
KMD (NZSX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.