Announcement

HALFYR: KMD: 1H FY2022 Interim Results 09:34am 
KMD
23/03/2022 09:34
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HALFYR: KMD: 1H FY2022 Interim Results

KMD Brands Limited
ASX / NZX / Media Announcement
23 March 2022

(All amounts in NZ$ unless otherwise stated)

Strategic initiatives position KMD Brands for return to global growth

Leading global outdoor, lifestyle and sports company, KMD Brands Limited (ASX
/ NZX: KMD, 'KMD' or the 'Company'), is pleased to announce its results for
the six months ended 31 January 2022 (1H FY22).

1H FY22 key highlights (vs 1H FY21):
o Sales of $407.3 million (1H FY21: $410.7 million)
- - positive Q2 rebound following Q1 COVID lockdown impacts on Kathmandu and
Rip Curl in Australasia
- - Oboz impacted by COVID closure of Vietnam factories (now reopened)
o Gross margin of 57.7% (1H FY21: 59.0%), due to elevated international
freight costs, and increased clearance mix for the Kathmandu brand
o Underlying EBITDA of $10.2 million (1H FY21: $48.2 million) (excluding the
impact of IFRS 16)
o Statutory NPAT loss of $(5.5) million
o Strong balance sheet with $48.6 million net debt and comfortably within all
covenants; significant funding headroom of c.$250 million
o Interim dividend increased by 50% to 3.0 cents per share (fully franked for
Australian shareholders)

Commenting on the 1H FY22 results, Group CEO & Managing Director Michael Daly
said:
"We continued to deliver on our strategic objectives, positioning KMD Brands
for growth as travel rebounds globally and COVID-related impacts on supply
abate. We maintained a strong focus on building our global brands,
sponsoring the first ever World Surf League finals, with the men's event won
by a Rip Curl surfer. We opened twelve new owned / licensed retail stores
globally, and online sales increased to 17.4% of direct-to-consumer sales,
rewarding initiatives to elevate digital capabilities. Substantial progress
was also achieved on our ESG strategy."

"Rip Curl delivered sales growth of 2.7% over the half, with strong sales
growth in online and wholesale channels, underpinned by strong performance in
Europe and Hawaii in particular, while North America was impacted by
short-term wetsuit shortages and port congestion. Rip Curl returned to same
store sales growth in Q2, as lockdown restrictions lifted and the business
rebounded."

"The Kathmandu Australasian store network was more impacted by COVID closures
in Q1 than the Rip Curl global store network, before recovering strongly in
Q2. While Kathmandu continued to feel the impacts of COVID related travel
restrictions, we were pleased to see a 46.4% increase in online sales, and
the business is well positioned to grow internationally, with the Europe Fall
/ Winter 22 sell-in complete, and forward orders in line with expectations."

"Oboz was impacted by the closure of Vietnam supplier factories due to COVID
lockdowns, with approximately half of 1H FY22 orders unable to be fulfilled.
However, the demand for the Oboz brand and products has never been stronger,
with forward orders into FY23 very strong and supporting our medium-term
growth targets."

"Our rebranding to KMD Brands earlier this month reflects our purpose to
inspire people to explore and love the outdoors, with a vision of being the
leading family of global outdoor brands - designed for purpose, driven by
innovation, best for people and planet. It is with this ethos in mind that we
look to develop our portfolio of global brands, underpinned by investments
that deliver a world-class unified commerce experience, and our commitment to
operational excellence and leadership in ESG."

The following are attached in relation to KMD Brands Limited's Interim Result
for the period to 31 January 2022:
1. Results Announcement
2. Media Announcement
3. Interim Financial Statements for the six months ended 31 January 2022 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 23 March 2022. 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
Australia Local: +61 3 8317 0929
New Zealand Toll Free: 0800 423 972
United States: 800 289 0459

Conference ID: 177616

- ENDS -

For further information, please contact:

Investors
Eric Kuret
Market Eye
P: +61 417 311 335
E: eric.kuret@marketeye.com.au

Media
Helen McCombie
Citadel-MAGNUS
P: + 61 2 8234 0103
End CA:00389338 For:KMD Type:HALFYR Time:2022-03-23 09:34:07

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