1H FY2024 Interim Results

Results announcement
KMD BRANDS LIMITED W kmdbrands.com

Results for announcement to the market
Name of issuer KMD Brands Limited
Reporting Period 6 months to 31 January 2024
Previous Reporting Period 6 months to 31 January 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$468,644 (14.5%)
Total Revenue $468,644 (14.5%)
Net profit/(loss) from continuing
operations
($9,667) (169.2%)
Total net profit/(loss) ($9,667) (169.2%)
Interim Dividend
Amount per Quoted Equity
Security
NIL
Imputed amount per Quoted
Equity Security
NIL
Record Date N/A
Dividend Payment Date N/A
Current period Prior comparable period
Net tangible assets per Quoted
Equity Security
$0.14 $0.14
A brief explanation of any of the
figures above necessary to
enable the figures to be
understood
The interim results are based on accounts which have been subject to
review. Refer to accompanying unaudited financial statements.
Authority for this announcement
Name of person

authorised to
make this announcement
Frances Blundell
Contact person for this
announcement
Frances Blundell
Contact phone number +64 3 968 6110
Contact email address companysecretary@kmdbrands.com
Date of release through MAP

Tuesday, 19 March 2024

Unaudited financial statements accompany this announcement.

---

KMD BRANDS LIMITED W kmdbrands.com


KMD Brands Limited
ASX / NZX / Media announcement


19 March 2024
(All amounts in NZ$ unless otherwise stated)


KMD Brands 1H FY24 Interim Results


KMD Brands Limited (ASX/NZX: KMD, “KMD” or the “Group”) announces its results for the
six months ended 31 January 2024 (“1H FY24”).


1H FY24 financial summary (vs 1H FY23):

• Group sales decreased by -14.5% to $468.6 million.
• Gross margin improved by 1 0 basis points to 58.8%.
• Operating expenses $ 15.8 million below last year, down -5.7% YOY.
• Underlying EBITDA
1
$ 15.1 million, down 66.8% YOY due to lower sales.
• Statutory NPAT loss -$9.7 million; Underlying NPAT
1
loss -$6.9 million.
• Strong balance sheet position. Net working capital -7.4% lower YOY to $226.2 million.
• No interim dividend declared as a result of 1H FY24 operating performance.


Commenting on the 1H FY24 results, Group CEO & Managing Director Michael Daly
said:

“Through the first half we continued to experience the effects of weakness in consumer
sentiment. S ales were 14.5% below last year’s record result; and decreased for all three of
our brands.”


“Weaker consumer sentiment, the warmest winter on record in Australia and an over-reliance
on winter weight product led to a disappointing first half for Kathmandu.”

“Rip Curl and Oboz are cycling record sales last financial year, and while revenues from the
direct-to-consumer channel are showing single digit declines, the wholesale channel has
been more challenging for both brands as wholesale customers reduce inventory holdings.”

“In a challenging sales environment, the Group improved gross margin despite currency
headwinds, controlled operating costs, and reduced working capital.”






1
Excluding the impact of IFRS 16 and the notional amortisation of Rip Curl and Oboz customer relationships.

KMD BRANDS LIMITED W kmdbrands.com


Group financial performance

Statutory Underlying
1

NZ$ million
2
1H FY24 1H FY24 1H FY23 Var %
Sales 468.6 468.6 547.9 (14.5%)
Gross Profit 275.7 275.7 321.8 (14.3%)
Gross margin 58.8% 58.8% 58.7%
Operating Expenses (211.3) (260.6) (276.4) (5.7%)
EBITDA 64.4 15.1 45.3 (66.8%)
EBIT 0.5 (1.7) 29.3
NPAT (9.7) (6.9) 16.5

Gross margin remained resilient, increasing +10 bps (+0.1% of sales), despite the realised
US dollar hedged rate
3
in 1H FY24 being down approximately 7% from the prior comparative
period. These currency headwinds were offset by lower freight rates, improved channel mix,
improved pricing, exiting low margin business, and new product introductions.

Operating costs were $15.8 million below last year, despite continued inflation pressure.
Operating expenses benefited from restructuring implemented last year and lower variable
costs associated with lower sales.


Rip Curl: sales impacted by wholesale customer caution

Rip Curl Underlying
1

NZ$ million
2
1H FY24 1H FY23 Var %
Sales 278.3 306.4 (9.2%)
EBITDA 27.4 37.6 (27.0%)
EBIT 20.8 31.5 (34.0%)

Rip Curl total sales decreased -9.2% to $278.3 million, cycling record sales last year.

Direct-to-consumer sales including online (“DTC sales”) decreased by - 5.0%, reflecting
weakened consumer sentiment in key global markets, while noting stronger results in
Europe, Asia and South America. Online sales increased by +4.3% and remain significantly
above pre-COVID levels.

Wholesale sales decreased by -14.1%, as wholesale accounts reduced their inventory
holdings in response to the challenging consumer environment.

In a challenging sales environment, gross margin and operating expenses were well
controlled. Gross margin increased +90 bps (+0.9% of sales) reflecting improved pricing and
freight rates, plus exiting low margin business in North America and Europe. Operating
expenses were tightly managed despite continued inflation pressure.




2
1H FY24 NZD/AUD conversion rate 0.926 ( 1H FY23: 0.910), 1H FY24 NZD/USD conversion rate 0.604 (1H FY23 0.612).
3
The following exchange rates are hedged by the Group to purchase inventory: NZD/USD, AUD/USD and EUR/USD.

KMD BRANDS LIMITED W kmdbrands.com


Kathmandu: sales reflect ongoing weakness in consumer sentiment

Kathmandu Underlying
1

NZ$ million
2
1H FY24 1H FY23 Var %
Sales 152.3 194.0 (21.5%)
EBITDA (8.3) 12.3
EBIT (18.0) 2.7

Kathmandu total sales decreased -21.5%, cycling strong sales growth last year, with declines
in both Australia -22.9%
4
and New Zealand -15.9%.

Online sales decreased by -36.9% to $16.4 m illion, as consumers returned to shopping in
stores. Online penetration at 10.9% of DTC sales remained above pre-COVID levels.
Improvement to online sales performance is a priority.

Gross margin decreased -240 bps (-2.4% of sales), driven by clearance of end of line
products in August. Excluding August, gross margin for the period was -50 bps (-0.5% of
sales) lower YOY despite currency headwinds.

Operating expenses were tightly managed despite continued inflation pressure.


Oboz: sales impacted by wholesale customer caution

Oboz Underlying
1

NZ$ million
2
1H FY24 1H FY23 Var %
Sales 38.0 47.5 (20.0%)
EBITDA (0.1) 2.9
EBIT (0.5) 2.5

Total sales decreased -20.0%, cycling record sales last year. Wholesale sales decreased -
23.5% as wholesale customers reduce their inventory holdings in response to the
challenging consumer environment.

Online sales grew strongly +34.2% YOY, benefiting from strategic promotional activity.

In a challenging sales environment, gross margin and operating expenses were well
controlled. Gross margin increased +450 bps (+4.5% of sales) reflecting lower freight rates,
improved channel mix, improved pricing and new product introductions.

Oboz continued to invest in brand, online and product to support long-term growth objectives,
including international expansion. While the North American wholesale operating margin
remained below historic levels, Oboz expects the operating expense investment to be
leveraged with future sales growth opportunities.






4
At constant exchange rates.

KMD BRANDS LIMITED W kmdbrands.com


Balance sheet

At 31 January 2024, the Group had a net debt position of $96.2 million with funding
headroom of approximately $ 190 million.

Inventory was well positioned, $5 million below January 2023, and net working capital was
$18 million below January 2023 despite lower sales. The inventory balance at July 2024 is
expected to be below July 2023. The unwind of inventory is expected to underpin traditionally
strong operating cashflow generation in the second half year.

As previously communicated in the FY23 results release, the balance between interim and
final dividend will be adjusted to better reflect the profitability of each half year. As a result of
this change, and due to the first half performance, the Directors have not declared an interim
dividend.


Outlook

First half sales trends have improved for all three brands as they begin the second half year.
Group sales for February 2024 were -3.5% below last year, noting that February is not a
significant trading month.

Commenting on the outlook for the Group, Mr Daly said:

“In the second half t he Group will be cycling less challenging sales performance last year,
particularly Kathmandu in the fourth quarter.”

“I mproving Kathmandu sales performance is our immediate priority as we approach the key
winter trading period. We expect to see progress in the second half and into FY25 as we
launch new innovative products, quick to market programmes, elevated visual
merchandising, increased personalisation through the recently released “Out There
Rewards” and an expanded third-party brand strategy.”

“We expect the wholesale customer inventory reduction cycle to end this financial year,
giving us a more positive FY25 outlook in the wholesale channel for both Rip Curl and Oboz.”

“We believe that with our portfolio of iconic global outdoor brands and leadership in
sustainability, we remain a unique investment proposition and well-placed for the future.”

KMD BRANDS LIMITED W kmdbrands.com


Investor briefing being held today at 8:30am AEDT / 10:30am NZDT

Michael Daly (Group CEO & Managing Director), and Ben Washington (Interim Group CFO)
will be holding a briefing session for investors and analysts at 8:30am AEDT / 10:30am
NZDT today (Tuesday 19 March).
Please attend the meeting by following this link: www.virtualmeeting.co.nz/kmdhy24


You may also dial one of the numbers below and provide the conference ID 7772131 to the
operator to listen to the meeting.
Australia Toll Free: 1800 571 226
New Zealand Toll Free: 0800 450 012
France: +33 800 943355
United Kingdom: +44 800 358 0970

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


This announcement has been authorised for release to NZX / ASX by the Board of Directors
of KMD Brands Limited.

- ENDS -

For further information, whether an investor or media enquiry, please contact:
enquiries@kmdbrands.com

---

KMD BRANDS LIMITED


INTERIM REPORT 2024

KMD BRANDS LIMITED - INTERIM REPORT 2024
2
DIRECTORS’ REPORT
The Directors of KMD Brands Limited present the Interim Report for the Company and its controlled entities for the half year ended
31 January 2024.
Review of Operations
Group sales for the interim period of $468.6 million are 14.5% below last year as consumer sentiment continued to weaken.
Kathmandu sales are down 21.5% year on year due to weaker consumer sentiment and a reliance on winter weight product. Rip
Curl sales are down 9.2% with the largest decrease from the wholesale channel as wholesale accounts reduce inventory holdings.
Oboz sales have declined 20.0% driven by similar challenges to Rip Curl in the wholesale market, however, the online direct-to
consumer channel has continued to grow.
Gross margin remains resilient, increasing +10 bps (0.1% of sales), despite currency headwinds which have been offset by reduced
freight rates, improved channel mix and pricing, exiting low margin business, and new product introductions.
Operating costs are $15.8 million below last year, despite continued inflation pressure. Operating expenses benefited from
restructuring implemented last year and lower variable costs associated with lower sales.
As at 31 January 2024, the Group had a net debt position of $96.2 million with significant funding headroom of approximately $200
million.
Inventory remains well positioned, $5.2 million below January 2023, and net working capital is $18.2 million below January 2023.
The unwind of net working capital has increased 1H operating cashflow to $42.2 million, an increase of $12.3 million from last year
despite lower sales.
No interim dividend has been declared.
A further review of the operations of the Group is set out in the accompanying media release of 19 March 2024.
Seasonality
Due to the seasonal nature of the Group’s activities, the activities in the second half of the year historically provide a larger portion of
the sales and net profit for the full year.
Signed in accordance with a resolution of the Directors:
David Kirk Michael Daly
Director Director

KMD BRANDS LIMITED - INTERIM REPORT 2024

3

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Note Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023





NZ$’000 NZ$’000 NZ$’000

Sales revenue 5 468,644 547,924 1,102,994
Cost of sales (192,933) (226,173) (451,049)
Gross profit 275,711 321,751 651,945

Other income 1,335 622 1,840
Selling expenses 6 (124,785) (138,036) (267,743)
Administration and general expenses 6 (87,886) (93,492) (185,973)
(211,336) (230,906) (451,876)
Earnings before interest, tax, depreciation, and amortisation 64,375 90,845 200,069

Depreciation and amortisation 6 (63,895) (59,474) (123,713)
Earnings before interest and tax 480 31,371 76,356

Finance income 776 291 886
Finance expenses (14,029) (10,472) (24,940)
Finance costs - net 6 (13,253) (10,181) (24,054)

(Loss)/Profit before income tax (12,773) 21,190 52,302

Income tax credit/(expense) 3,106 (7,213) (15,688)

(Loss)/Profit after income tax (9,667) 13,977 36,614



(Loss)/Profit for the period attributable to:


Shareholders of the company

(10,426) 13,159 35,139
Non-controlling interest

759 818 1,475

Other comprehensive income/(loss) that may be recycled through profit and loss:
Movement in cash flow hedge reserve

5,155 1,797 8,499
Movement in foreign currency translation reserve

(1,951) (12,638) 3,055
Other comprehensive income/(loss) for the period, net of tax 3,204 (10,841) 11,554



Total comprehensive (loss)/income for the period (6,463) 3,136 48,168



Total comprehensive (loss)/income for the period attributable
to:

Shareholders of the company

(7,192) 2,412 46,838
Non-controlling interest

729 724 1,330



Basic earnings per share

(1.5) cps 1.9 cps 4.9 cps
Diluted earnings per share

(1.4) cps 1.8 cps 4.9 cps
Weighted average basic ordinary shares outstanding (‘000) 711,429 711,220 711,283
Weighted average diluted ordinary shares outstanding (‘000)

719,669 716,072 719,546

KMD BRANDS LIMITED - INTERIM REPORT 2024

4

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Share
Capital
Cash Flow
Hedge
Reserve
Foreign
Currency
Translation
Reserve
Share
Based
Payments
Reserve
Other
Reserves
Retained
Earnings
Non-
controlling
Interest
Total
Equity



NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000

Balance as at 31 July 2022 626,380 6,218 6,491 3,165 (47) 203,525 4,726 850,458

Profit after tax - - - - - 35,139 1,475 36,614
Other comprehensive income - 8,499 3,200 - - - (145) 11,554
Dividends paid - - - - - (42,681) - (42,681)
Issue of share capital 2,699 - - (2,699) - - - -
Share based payment expense - - - 568 - - - 568
Deferred tax on share-based
payment transactions
- - - 252 - - - 252
Amounts transferred to initial
carrying amount of hedged items
- (14,443) - - - - - (14,443)
Dividends paid to non-controlling
interest
- - - - - - (685) (685)
Balance as at 31 July 2023 629,079 274 9,691 1,286 (47) 195,983 5,371 841,637

(Loss)/Profit after tax - - - - - (10,426) 759 (9,667)
Other comprehensive income - 5,155 (1,921) - - - (30) 3,204
Dividends paid - - - - - (21,340) - (21,340)
Issue of share capital 304 - - (304) - - - -
Share based payment expense - - - 359 - - - 359
Deferred tax on share-based
payment transactions
- - - (21) - - - (21)
Amounts transferred to initial
carrying amount of hedged items
- (3,953) - - - - - (3,953)
Dividends paid to non-controlling
interest
- - - - - - (701) (701)
Balance as at 31 January 2024 629,383 1,476 7,770 1,320 (47) 164,217 5,399 809,518

KMD BRANDS LIMITED - INTERIM REPORT 2024

5

CONSOLIDATED BALANCE SHEET

Note Unaudited
As at
31 January
2024
Unaudited
As at
31 January
2023
Audited
As at
31 July
2023




NZ$’000 NZ$’000 NZ$’000
ASSETS

Current assets

Cash and cash equivalents

34,031 85,620 49,488
Trade and other receivables
8
78,444 90,630 102,696
Inventories
9
313,568 318,757 290,420
Derivative financial instruments 13 3,642 2,174 2,560
Current tax asset 19,102 3,401 12,278
Other current assets 1,801 2,487 1,860
Total current assets 450,588 503,069 459,302

Non-current assets
Trade and other receivables 8 1,901 1,774 1,856
Property, plant, and equipment 84,722 77,900 82,942
Intangible assets 10 696,167 704,833 704,402
Deferred tax assets 14,548 16,490 14,650
Right-of-use assets 11 257,541 264,705 270,327
Total non-current assets 1,054,879 1,065,702 1,074,177

Total assets 1,505,467 1,568,771 1,533,479

LIABILITIES
Current liabilities
Trade and other payables 165,813 165,030 173,392
Derivative financial instruments 13 555 4,607 1,160
Current tax liabilities 805 1,313 718
Current lease liability 11 81,180 76,674 83,232
Total current liabilities 248,353 247,624 258,502

Non-current liabilities
Non-current trade and other payables 15,649 17,078 15,988
Interest bearing liabilities 12 130,210 170,496 105,209
Deferred tax 93,356 90,682 93,275
Non-current lease liability 11 208,381 220,802 218,868
Total non-current liabilities 447,596 499,058 433,340

Total liabilities 695,949 746,682 691,842

Net assets 809,518 822,089 841,637

EQUITY
Issued capital 629,383 629,079 629,079
Reserves 10,519 (7,093) 11,204
Retained earnings 164,217 195,344 195,983
Non-controlling interest 5,399 4,759 5,371
Total equity 809,518 822,089 841,637

KMD BRANDS LIMITED - INTERIM REPORT 2024

6

CONSOLIDATED STATEMENT OF CASH FLOWS

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023







NZ$’000 NZ$’000 NZ$’000
Cash was provided from:
Receipts from customers 490,763 563,109 1,103,833
Government grants received 126 188 6,019
Interest received 776 291 886
Income tax received - 509 1,892
491,665 564,097 1,112,630
Cash was applied to:
Payments to suppliers and employees 433,108 517,264 919,847
Income tax paid 3,768 7,923 22,969
Interest paid 12,603 8,986 22,226
449,479 534,173 965,042

Net cash inflow from operating activities 42,186 29,924 147,588

Cash flows from investing activities
Cash was provided from:
Proceeds from sale of property, plant, and equipment 1 - -
1 - -
Cash was applied to:
Purchase of property, plant, and equipment 12,585 11,311 27,665
Purchase of intangibles 2,633 3,533 8,323
15,218 14,844 35,988

Net cash (outflow) from investing activities (15,217) (14,844) (35,988)

Cash flows from financing activities
Cash was provided from:
Proceeds of borrowings 126,490 110,848 132,955
126,490 110,848 132,955
Cash was applied to:
Dividends paid 22,042 22,031 43,366
Repayment of borrowings 101,630 45,811 134,074
Repayment of lease liabilities 45,058 41,726 86,919
168,730 109,568 264,359

Net cash (outflow) / inflow from financing activities (42,240) 1,280 (131,404)

Net (decrease) / increase in cash held (15,271) 16,360 (19,804)

Opening cash and cash equivalents 49,488 70,810 70,810
Effect of foreign exchange rates (186) (1,550) (1,518)
Closing cash and cash equivalents 34,031 85,620 49,488

KMD BRANDS LIMITED - INTERIM REPORT 2024

7

RECONCILIATION OF NET (LOSS)/PROFIT AFTER TAXATION WITH CASH INFLOW FROM OPERATING
ACTIVITIES

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000



(Loss)/Profit after income tax (9,667) 13,977 36,614

Movement in working capital:
(Increase) / decrease in trade and other receivables 24,460 13,098 (776)
(Increase) / decrease in inventories (24,059) (29,727) (1,121)
(Increase) / decrease in other current assets 51 (101) 510
Increase / (decrease) in trade and other payables (7,162) (25,256) (17,360)
Increase / (decrease) in tax liability (6,795) (271) (9,002)
(13,505) (42,257) (27,749)
Add non-cash items:
Depreciation of property, plant, and equipment 11,230 11,272 22,824
Amortisation of intangibles 8,192 7,408 14,132
Depreciation of right-of-use assets 44,473 40,794 86,757
Impairment of right-of-use assets 945 - (1,675)
Foreign currency translation of working capital balances 18 (2,503) 11,809
Movement in deferred taxation (81) 71 3,610
Employee share-based remuneration 359 925 568
Loss on disposal of property, plant, and equipment and intangibles 222 237 698
65,358 58,204 138,723

Cash inflow from operating activities 42,186 29,924 147,588

KMD BRANDS LIMITED - INTERIM REPORT 2024

8

1 GENERAL INFORMATION
KMD Brands Limited (the Company) and its subsidiaries (together the Group) is a designer, marketer, retailer and wholesaler
of apparel, footwear and equipment for surfing and the outdoors. It operates in New Zealand, Australia, North America, Europe,
South East Asia, Japan and Brazil.
The Company is a limited liability company incorporated and domiciled in New Zealand. KMD Brands Limited is a company
registered under the Companies Act 1993 and is an FMC reporting entity under Part 7 of the Financial Markets Conduct Act
2013. The address of its registered office is 223 Tuam Street, Central Christchurch, Christchurch.
These consolidated interim financial statements have been approved for issue by the Board of Directors on 19 March 2024,
and have been reviewed, not audited.

2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These general-purpose financial statements for the six months ended 31 January 2024 have been prepared in accordance with
NZ IAS 34, Interim Financial Reporting. In complying with NZ IAS 34, these consolidated interim financial statements also
comply with IAS 34.
These consolidated interim financial statements do not include all the notes of the type normally included in an annual financial
report. Accordingly, this report should be read in conjunction with the audited financial statements of KMD Brands Limited for
the year ended 31 July 2023 which have been prepared in accordance with the New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
The Group is designated as a profit-oriented entity for financial reporting purposes.
The consolidated interim financial statements are presented in New Zealand dollars, which is the Group’s presentation
currency.
3 ACCOUNTING POLICIES
The consolidated interim financial statements have been prepared using the same accounting policies and methods of
computation as those used in the audited financial statements of KMD Brands Limited for the year ended 31 July 2023.
Use of non-GAAP disclosures
At times non-GAAP disclosures have been used in the consolidated financial statements. These disclosures have been
included as they are key measurement criteria on which the Group and operating segments are reviewed by the Group Chief
Executive Officer, Group Executive Management team and the Board of Directors. The following non-GAAP measures are
relevant to the understanding of the Group's financial performance:
• Earnings before interest, tax, depreciation and amortisation (EBITDA) represents earnings before income taxes
excluding interest income, interest expense, depreciation, and amortisation, as reported in the financial statements.
• Earnings before interest and tax (EBIT) represents EBITDA less depreciation and amortisation.
• Net debt represents cash and cash equivalents less interest-bearing liabilities. Net debt does not include lease
liabilities.
Non-GAAP financial information does not have a standardised meaning prescribed by GAAP and therefore may not be
comparable to similar financial information presented by other entities. The non-GAAP information within the consolidated
financial statements is subject to review procedures.
New standards first applied in the period
There are no new standards first applied in the period.
Standards, interpretations, and amendments to published standards that are not yet effective
There are no standards or amendments published but not yet effective that are expected to have a significant impact on the
Group.

KMD BRANDS LIMITED - INTERIM REPORT 2024

9

4 CLIMATE CHANGE RISK
The Group’s operations may be impacted by future climate change. These impacts may be physical (e.g. severe or unusual
weather patterns and events) or transitional (e.g. changes to government regulations or customer and supplier needs and
demands).
The Group regularly assesses its operating environment with regards to the impact of climate change. Specific consideration
has been given in these financial statements to the impact of future climate change on the useful lives of the Group’s property,
plant, and equipment, impairment of intangible assets, the inclusion of expected renewals in the lease term for right-of-use
assets and sustainability linked loans. No significant impacts have been identified.
During the previous year, the Group collaborated with other retail industry participants, with guidance from the New Zealand
External Reporting Board (XRB), to develop relevant sector-level climate-related scenarios with reference to the Aotearoa New
Zealand Climate Standards (NZ CS). The Group is now modelling how different scenarios of climate change may impact our
global footprint and strategy. We will provide reporting in our 2024 Annual Integrated Report.

5 REVENUE

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000


Sale of goods

463,966 540,319 1,091,290
Royalty revenue

4,224 7,166 10,819
Commission revenue

454 439 885
468,644 547,924 1,102,994

6 EXPENSES

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000
Profit/(Loss) before tax includes the following expenses:

Depreciation of property, plant, and equipment

11,230 11,272 22,824
Amortisation

8,192 7,408 14,132
Depreciation of right-of-use assets

44,473 40,794 86,757
Impairment expense/(income) of right-of-use assets

945 - (1,675)
Employee entitlements expense

113,383 119,129 231,131
Rental expense

11,840 14,536 26,468

Finance costs


Interest income

(776) (291) (886)
Interest expense on interest bearing liabilities

4,999 3,282 7,828
Interest on lease liabilities

5,876 5,098 11,022
Other finance costs

1,956 1,586 3,692
Net exchange loss/(gain) on foreign currency

1,198 506 2,398
13,253 10,181 24,054
Other finance costs relate to facility fees on banking arrangements.

KMD BRANDS LIMITED - INTERIM REPORT 2024

10

7 SEGMENTAL INFORMATION
The Group has three operating segments representing the brands owned by the Group and a Corporate segment. These
operating segments have been determined based on the reports reviewed by the Group Chief Executive Officer and Group
Executive Management team.
- Rip Curl - designer, manufacturer, wholesaler and retailer of surfing equipment and apparel.
- Kathmandu - designer, retailer and wholesaler of apparel, footwear and equipment for outdoor travel and adventure.
- Oboz - designer, wholesaler and online retailer of outdoor footwear.
The Corporate segment represents group costs, holding companies and consolidation eliminations and constitutes other
business activities that do not fall within the brand segments.
The default basis of allocating shared costs is percentage of revenue with other bases being used where appropriate.
31 January 2024 Rip Curl Kathmandu Oboz Corporate Total

NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000

Total segment sales 278,315 152,324 38,629 - 469,268
Sales to internal customers - - (624) - (624)
Sales to external customers 278,315 152,324 38,005 - 468,644
EBITDA 47,462 20,684 201 (3,972) 64,375
Depreciation and amortisation (28,246) (34,729) (840) (80) (63,895)
EBIT 19,216 (14,045) (639) (4,052) 480
Income tax expense (4,751) 4,136 243 3,478 3,106

Total segment assets 725,336 598,694 170,359 11,078 1,505,467
Total assets include:
Non-current assets 480,237 455,161 118,493 988 1,054,879
Additions to non-current assets 24,149 24,012 266 325 48,752

Total segment liabilities 299,757 253,316 24,154 118,722 695,949

31 January 2023 Rip Curl Kathmandu Oboz Corporate Total

NZ$’000 NZ$’000 NZ$’000 NZ$’000 NZ$’000

Total segment sales 306,424 193,968 50,232 - 550,624
Sales to internal customers - - (2,700) - (2,700)
Sales to external customers 306,424 193,968 47,532 - 547,924
EBITDA 57,538 37,570 3,101 (7,364) 90,845
Depreciation and amortisation (27,033) (31,650) (791) - (59,474)
EBIT 30,505 5,920 2,310 (7,364) 31,371
Income tax expense (7,509) (2,489) (684) 3,469 (7,213)

Total segment assets 767,654 609,529 176,851 14,737 1,568,771
Total assets include:
Non-current assets 475,672 473,103 113,535 3,392 1,065,702
Additions to non-current assets 41,313 30,923 897 - 73,133

Total segment liabilities 309,613 304,125 28,646 104,298 746,682

KMD BRANDS LIMITED - INTERIM REPORT 2024

11

8 TRADE AND OTHER RECEIVABLES

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000

Current

Trade receivables

59,457 68,445 79,933

Allowance for expected credit losses

(6,702) (6,061) (5,620)

Prepayments

15,830 15,597 18,156

Other receivables

9,859 12,649 10,227



78,444 90,630 102,696


Non-current



Other debtors

1,901 1,774 1,856



9 INVENTORY

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000



Raw materials and consumables

7,877 9,021 9,680

Work in progress

1,963 3,431 2,144

Trading inventory

262,859 271,298 252,399

Goods in transit

40,869 35,007 26,197



313,568 318,757 290,420



10 INTANGIBLE ASSETS

Carrying value of intangible assets
The Group market capitalisation is below the carrying value of net assets and the Group has made a net loss after income tax
of $9,667,000 for the period. Historically the second half of the financial year is more profitable and generates more cash flow
and therefore we do not consider the short term results an indicator of impairment. In addition, our internal valuation models
continue to provide sufficient headroom at both Group and Brand cash generating unit levels. No impairment indicators exist as
at 31 January 2024.

As at 31 July 2023 the CGU with the lowest headroom was the Oboz CGU with NZ$30 million of headroom. Sensitivity analysis
showed that if the Oboz EBITDA margin does not recover to its historical levels the CGU could be impaired if all other
assumptions remained unchanged. As at 31 January 2024 no new indicators exist that change this conclusion.

KMD BRANDS LIMITED - INTERIM REPORT 2024

12

11 LEASES

Right-of-use assets
The movements in right of use assets were as follows:

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000

Opening net book value 270,327 250,372 250,372
Additions and modifications to right-of-use asset 33,534 58,289 106,231
Depreciation for the period (44,473) (40,794) (86,757)
Impairment for the period (945) - 1,675
Foreign exchange (902) (3,162) (1,194)
Closing net book value 257,541 264,705 270,327

Lease liabilities
The movements in lease liabilities were as follows:

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000

Opening lease liabilities 302,100 284,587 284,587
Additions and modifications to lease liabilities 34,099 58,942 108,025
Interest expense on lease liabilities 5,876 5,098 11,022
Repayment of lease liabilities (including interest) (51,499) (47,477) (99,736)
Foreign exchange (1,015) (3,674) (1,798)
Closing lease liabilities 289,561 297,476 302,100


12 INTEREST BEARING LIABILITIES
Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023

NZ$’000 NZ$’000 NZ$’000

Interest bearing liabilities

130,210 170,496 105,209

Group Facility Agreement
The Group has a multi-option syndicated facility, which consists of an A$240 million multi-currency revolving facility and a
NZ$54 million multi-currency revolving facility. Both facilities are sustainability linked with targets such as reducing greenhouse
gas emissions, continued B Corp certification, and improving transparency within the Group supply chain, including the
wellbeing and labour conditions of workers, and environmental metrics. All facilities are repayable in full on 12 November 2026.
Interest is payable based on the BKBM rate (NZD borrowings), the BBSY rate (AUD borrowings), SOFR rate (US borrowings)
or the applicable short-term rate for interest periods less than 30 days, plus a margin of between 1.05% - 1.31%. The debt is
secured by the assets of the guaranteeing group in accordance with the Security Trust Deed dated 25 October 2019 as
amended 12 May 2023. The guaranteeing group comprises entities operating in New Zealand, Australia, North America and
the United Kingdom. The carrying value of the assets held by the guaranteeing group are $1,416,837,000 (2023:
$1,489,325,000).

KMD BRANDS LIMITED - INTERIM REPORT 2024

13

The covenants entered into by the Group require specified calculations of Group earnings before interest, tax, depreciation and
amortisation (EBITDA) plus lease rental costs to exceed total fixed charges (net interest expense and lease rental costs) at the
end of each half during the financial year. Similarly, EBITDA must be no less than a specified proportion of total net debt at the
end of each six-month interim period. The calculations of these covenants are specified in the bank facility agreement of 25
October 2019 as amended and restated on 12 May 2023. The Group obtained a reduction of the fixed cover covenant for the
January 2024 and July 2024 measurement points. The Group has complied with its revised banking covenants at all
measurement points during the period.
The current interest rate, prior to hedging, on the term loans range between 5.40% - 5.41% (2023: 4.03% - 5.80%).

13 FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

(a) Financial risk factors

The Group’s activities expose it to a variety of financial risks, market risk (including currency risk and interest rate risk), credit
risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and
seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses derivative financial
instruments such as foreign exchange contracts and interest rate swaps to manage certain risk exposures. Derivatives are
exclusively used for economic hedging purposes, i.e. not as trading or other speculative instruments, however not all derivative
financial instruments qualify for hedge accounting.
Risk management is carried out based on policies approved by the Board of Directors. The Group treasury policy provides
written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk.
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group manages this
risk by actively managing working capital and ensuring flexibility in funding arrangements. Refer to note 12 for details of the
funding arrangements in place as at 31 January 2024.
The consolidated interim financial statements do not include all financial risk management information and disclosures required
in the annual financial statements; they should be read in conjunction with the Group’s annual financial statements as at 31
July 2023. There have been no changes in the risk management department or in any risk.

(b) Fair value estimation

The only financial instruments held by the Group that are measured at fair value are over-the-counter derivatives. These
derivatives have all been determined to be within level 2 (for the purposes of NZ IFRS 13) of the fair value hierarchy as all
significant inputs required to ascertain the fair value of these derivatives are observable.
There were no changes in valuation techniques during the period.
The following methods and assumptions were used to estimate the fair values for each class of financial instrument.
Trade debtors, trade creditors and bank balances
The carrying value of these items is equivalent to their fair value.
Term liabilities
The fair value of the Group's term liabilities is approximately carrying value.
Foreign exchange contracts and interest rate swaps
The forward foreign exchange contracts have been fair valued using forward exchange rates that are quoted in an active
market. Interest rate swaps are fair valued using forward interest rates extracted from observable yield curves. The effects of
discounting are insignificant for these derivatives.
Guarantees and overdraft facilities
The fair value of these instruments is estimated on the basis that management do not expect settlement at face value to arise.
The carrying value and fair value of these instruments is approximately nil. All guarantees are repayable on demand.

KMD BRANDS LIMITED - INTERIM REPORT 2024

14


The following table presents the Group’s assets and liabilities that are measured at fair value at balance date:

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000

Assets


Derivative financial instruments

3,642 2,174 2,560
Total assets

3,642 2,174 2,560

Liabilities


Derivative financial instruments

555 4,607 1,160
Total liabilities

555 4,607 1,160

14 COMMITMENTS
Capital commitments
Capital commitments contracted for at balance date are:

Unaudited
Six Months
Ended
31 January
2024
Unaudited
Six Months
Ended
31 January
2023
Audited
Year
Ended
31 July
2023


NZ$’000 NZ$’000 NZ$’000

Property, plant, and equipment

1,303 131 1,790
Intangible assets

2,516 3,506 2,062
Intangible asset commitments as at 31 January 2024 relate to various projects across the Group to upgrade information
technology software and systems.

15 CONTINGENT LIABILITIES
The Group is subject to litigation incidental to its business, none of which is expected to be material. No provision has been
made in the Group’s consolidated interim financial statements in relation to any current litigation and the Directors believe that
such litigation will not have a material effect on the Group’s consolidated interim financial position, results of operations or cash
flows.

16 CONTINGENT ASSETS
There are no contingent assets as at 31 January 2024 (2023: nil).

17 RELATED PARTY DISCLOSURES
No amounts owed to related parties have been written off or forgiven during the period.

18 EVENTS OCCURRING AFTER BALANCE DATE
There are no other events after balance date which materially affect the information within the financial statements.

KMD BRANDS LIMITED - INTERIM REPORT 2024

15

STATUTORY INFORMATION

GROUP STRUCTURE
KMD Brands Limited owns 100% of the following companies unless otherwise stated:
Kathmandu Group Limited
KMD Brands Investments Limited
KMD Brands Finance (NZ) Limited
KMD Brands Finance (AU) Limited
KMD Brands Managed Services (NZ) Limited
KMD Brands Managed Services (AU) Pty Limited
Kathmandu Limited
Kathmandu Pty Limited
Kathmandu (U.K.) Limited
Kathmandu US Holdings LLC
Oboz Footwear LLC
Barrel Wave Holdings Pty Ltd
Rip Curl Group Pty Ltd
Rip Curl International Pty Ltd
PT Jarosite
Rip Curl Pty Ltd
Onsmooth Thai Co Ltd
Rip Curl (Thailand) Ltd (Group owns 50%)
Ozmosis Pty Ltd
Rip Curl Japan
Curl Retail No 1. Pty Ltd
RC Surf NZ Limited
Rip Curl Finance Pty Ltd
Rip Curl Europe S.A.S
Rip Curl Spain S.A.U
Rip Curl Suisse S.A.R.L
Rip Surf LDA
Rip Curl UK Ltd
KMD Brands Italy SRL
KMD Brands Germany GMBH
Rip Curl Nordic AB
Rip Curl Inc
Rip Curl Canada Inc
Rip Curl Brazil LTDA

DIRECTORS’ DETAILS
David Kirk Chairman, Non-Executive Director
Michael Daly Managing Director and Group Chief Executive Officer
Philip Bowman Non-Executive Director
Brent Scrimshaw Non-Executive Director
Andrea Martens Non-Executive Director
Abby Foote Non-Executive Director
Zion Armstrong Non-Executive Director

EXECUTIVES’ DETAILS
Michael Daly Group Chief Executive Officer
Chris Kinraid Group Chief Financial Officer (Resigned 8
th
December 2023)

DIRECTORY
The details of the Company’s principal administrative and registered office in New Zealand are:

223 Tuam Street
Christchurch Central
PO Box 1234
Christchurch 8011

KMD BRANDS LIMITED - INTERIM REPORT 2024

16

SHARE REGISTRY

In New Zealand: Link Market Services (LINK)

Physical Address: Level 30, PWC Tower
15 Customs Street West
Auckland 1010
New Zealand

Postal Address: PO Box 91976
Auckland, 1142
New Zealand

Telephone: +64 9 375 5999
Investor enquiries: +64 9 375 5998
Facsimile: +64 9 375 5990
Internet address: www.linkmarketservices.co.nz


In Australia: Link Market Services (LINK)

Physical Address: Level 13, Tower 4
727 Collins Street
Melbourne VIC 3000
Australia

Postal Address: Locked Bag A14
Sydney, South NSW 1235
Australia

Telephone: +61 3 9067 2005
Investor enquiries: +61 1300 554 474 (toll free within Australia)
Facsimile: +61 2 9287 0303
Internet address: www.linkmarketservices.com.au


STOCK EXCHANGES
The Company’s shares are listed on the NZX and on the ASX as a foreign exempt listing.

INCORPORATION
The Company is incorporated in New Zealand.

© 2024 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited
by guarantee. All rights reserved.
Independent Review Report
To the shareholders of KMD Brands Limited
Report on the interim consolidated financial statements
Conclusion
Based on our review, nothing has come to our
attention that causes us to believe that the interim
consolidated financial statements on pages 3 to 14
do not:
i.present fairly in all material respects the
Group’s financial position as at 31 January
2024 and its financial performance and
cash flows for the 6 month period ended on
that date; and
ii.comply with NZ IAS 34 Interim Financial
Reporting.
We have completed a review of the accompanying
interim consolidated financial statements which
comprise:
— the consolidated balance sheet as at 31 January
2024;
— the consolidated statements of comprehensive
income, changes in equity and cash flows for the
6 month period then ended; and
— notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed
by the Independent Auditor of the Entity (“NZ SRE 2410 (Revised)”). Our responsibilities are further described in
the Auditor’s Responsibilities for the review of the financial statements section of our report.
We are independent of KMD Brands Limited, in accordance with the relevant ethical requirements in New Zealand
relating to the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities in
accordance with these ethical requirements.
Our firm has also provided other services to the group in relation to tax compliance services. Subject to certain
restrictions, partners and employees of our firm may also deal with the group on normal terms within the ordinary
course of trading activities of the business of the group. These matters have not impaired our independence as
reviewer of the group. The firm has no other relationship with, or interest in, the group.
Use of this Independent Review Report
This report is made solely to the shareholders as a body. Our review work has been undertaken so that we might
state to the shareholders those matters we are required to state to them in the Independent Review R eport and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the shareholders as a body for our review work, this report, or any of the opinions we have formed.

© 2024 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee. All rights reserved.
Responsibilities of the Directors for the interim
consolidated financial statements
The Directors, on behalf of the group, are responsible for:
— the preparation and fair presentation of the interim consolidated financial statements in accordance with NZ
IAS 34 Interim Financial Reporting;
— implementing necessary internal control to enable the preparation of a interim consolidated financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
— assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the review of the
interim consolidated financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. We conducted
our review in accordance with NZ SRE 2410 (Revised) . NZ SRE 2410 (Revised) requires us to conclude whether
anything has come to our attention that causes us to believe that the interim financial statements are not prepared,
in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting.
A review of interim consolidated financial statements in accordance with NZ SRE 2410 (Revised) Review of
Financial Statements Performed by the Independent Auditor of the Entity (“NZ SRE 2410 (Revised)”) is a limited
assurance engagement. The auditor performs procedures, consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in
accordance with International Standards on Auditing (New Zealand) and consequently does not enable us to obtain
assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on these interim
consolidated financial statements.
KPMG
Christchurch
19 March 2024

---

1H FY24
RESULTS
PRESENTATION
19 MARCH 2024
Michael Daly
Group CEO &
Managing Director
Ben Washington
Interim Group CFO

2
3
7
13
17
20
24
28
OUTLINE
1.1H FY24 SUMMARY
2.FINANCIAL PERFORMANCE
3.BRANDS
4.STRATEGY UPDATE
5.KATHMANDU IN FOCUS
6.OUTLOOK
7.APPENDICES
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

1H FY24
SUMMARY
3
SECTION 1
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

FINANCIAL SUMMARY
4
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
1.Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results. Refer to Appendix 1 for a reconciliation of Statutory to Underlying results.
Net working
capital
-7.4%
58.8%
Gross margin
improvement
10 bps
$260.6m
Operating
expenses
1
-5.7%
$15.1m
Underlying
EBITDA
1
-66.8%
$468.6m
Sales
-14.5%
$226.2m
1H FY23 $276.4m1H FY23 58.7%1H FY23 $547.9m1H FY23 $45.3m
Jan 23 $244.4m

SALES HISTORY
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
55
363.7
410.7
407.3
547.9
468.6
1H FY20
incl. 3 months
of Rip Curl
1H
FY21
1H
FY22
1H
FY23
1H
FY24
SALES BY BRAND (NZ $m)
Rip CurlKathmanduObozTotal
363.7
410.7
407.3
547.9
468.6
1H FY20
incl. 3 months
of Rip Curl
1H
FY21
1H
FY22
1H
FY23
1H
FY24
SALES BY CHANNEL (NZ $m)
RetailOnlineWholesaleLicensing / RoyaltiesTotal

BRAND HIGHLIGHTS
OBOZ KATABATIC FRANCHISE
•The new Katabatic 'Wind' strengthens this
new Obozfranchise with advanced
technology which opens doors for new
distribution and consumer connections.
•Katabatic ‘Wind’ demonstrates the
brand’s market-leading innovation
pipeline as consumers move toward
lighter faster footwear.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
6
RIP CURL FUSION WETSUIT
•The Rip Curl Flashbomb Fusion wetsuit
launched in key global markets, including
North America and Europe, and is
performing well.
•Won 'Wetsuit of the Year' Award at Surf
Boardsports Industry Association (SBIA) -
Rip Curl's 11th consecutive win in this
category.
KATHMANDU OUT THERE REWARDS
•Launch of Kathmandu's new loyalty program
whichrewards members for engaging in their
passion - getting outdoors.
•An exclusive partnership with hiking platform
AllTrails sees members rewarded with
asubscription, amongst other benefits.
6

FINANCIAL
PERFORMANCE
7
SECTION 2
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

PROFIT & LOSS
8
SALES IMPACTED BY A CHALLENGING CONSUMER ENVIRONMENT
•Sales -14.5% below last year reflecting ongoing weakness in consumer
sentiment.
•Kathmandu has recorded softer sales since June 2023. A combination of
weaker consumer sentiment, the warmest winter on record in Australia and
the brand’s reliance on winter weight product has resulted in a disappointing
first half.
•Rip Curl and Oboz are cycling record sales last financial year. While
revenues from the direct-to-consumer channel for these brands are showing
single digit declines (-4.4%) the wholesale channel has been more
challenging (-16.8%) as wholesale customers reduce inventory holdings.
GROSS MARGIN REMAINS RESILIENT
•Group gross margin +10 bps (+0.1% of sales), despite the realised US dollar
hedged rate*
3
in 1H FY24 being down approximately 7% from the prior
comparative period. Currency headwinds offset by lower freight rates,
improved channel mix, improved pricing, exiting low margin business, and
new product introductions.
OPERATING EXPENSES TIGHTLY CONTROLLED
•Operating costs are $15.8 million below last year, despite continued inflation
pressure. Operating expenses benefited from restructuring implemented last
year and lower variable costs associated with lower sales.
1.Statutory results include the impact of IFRS 16 leases. For comparability, the impacts of IFRS 16 and the notional amortisation of
Rip Curl and Oboz customer relationships are excluded from Underlying results. Refer to Appendix 1 for a reconciliation of
Statutory to Underlying results.
2.1H FY24 NZD/AUD conversion rate 0.926 (1H FY23: 0.910), 1H FY24 NZD/USD conversion rate 0.604 (1H FY23 0.612).
3.The following exchange rates are hedged by the Group to purchase inventory: NZD/USD, AUD/USD and EUR/USD.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
KMD BRANDSStatutoryUnderlying
NZ $m
*2
1H FY241H FY231H FY241H FY23Var %
SALES468.6547.9468.6547.9(14.5%)
GROSS PROFIT275.7321.8275.7321.8(14.3%)
Gross margin58.8%58.7%58.8%58.7%
OPERATING EXPENSES(211.3)(230.9)(260.6)(276.4)(5.7%)
% of Sales45.1%42.1%55.6%50.4%
EBITDA64.490.815.145.3(66.8%)
EBITDA margin %13.7%16.6%3.2%8.3%
EBIT0.531.4(1.7)29.3
EBIT margin %0.1%5.7%-0.4%5.4%
NPAT(9.7)14.0(6.9)16.5

DIVERSIFIED SALES
9
363.7
410.7
407.3
547.9
468.6
1H FY20
incl. 3 months
of Rip Curl
1H
FY21
1H
FY22
1H
FY23
1H
FY24
SALES BY REGION (NZ $m)
AustraliaNew ZealandNorth AmericaEuropeRest of WorldTotal
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
-9.2%
Rip Curl
-21.5%
Kathmandu
-20.0%
Oboz
BY
BRAND
-12.6%
Retail
-16.9%
Online
-16.6%
Wholesale
-36.9%
Licensing / Royalties
BY
CHANNEL
-16.6%
Australia
-14.0%
New Zealand
-15.9%
North
America
-2.2%
Europe
-7.4%
Rest of World
BY
REGION
SALES CHANGE 1H FY24 VS 1H FY23

OMNI-CHANNEL PERFORMANCE
10
1.Direct-to-consumer (“DTC”) sales include all sales from retail stores, online sites and marketplaces.
2.All years include a full six months of Rip Curl, Kathmandu, and Oboz online and retail store sales for comparability over time, including pre-acquisition.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
•Online sales growth since pre-COVID 1H FY20 +28.9%.
•Kathmandu $16.4m online sales, comprising 10.9% of DTC sales.
•Rip Curl $18.5m online sales, comprising 10.5% of DTC sales.
•Oboz $3.8m online sales, +34.2% above last year.
342.0
284.5
275.8
380.1
330.3
8.8%
12.8%
17.3%
12.3%
11.7%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
1H
FY20
1H
FY21
1H
FY22
1H
FY23
1H
FH24
DIRECT TO CONSUMER SALES (NZ $m)
Retail StoresOnlineDTCOnline % of DTC sales

STRONG BALANCE SHEET
11
WORKING CAPITAL REDUCTION
•Net working capital $18m below Jan 23 despite lower sales, and inventory well
positioned, $5m below Jan 23.
•Inventory balance includes +$3m increase YOY from translation of regional
inventory balances to NZD reporting currency.
•Inventory balance Jul 24 expected to be below Jul 23.
•Trade receivables collection well managed, and down on lower wholesale sales.
DEBT
•Significant funding headroom c. $190m.
•Long-term leverage ratio target <0.5x Net Debt / EBITDA.
1.Key ratios calculated using 12-month underlying P&L measures.
2.COGS / Average Inventories YOY.
3.Net Debt / EBITDA.
4.Net Debt / (Net Debt + Equity).
5.(EBITDA + Rent)/(Rent + Net Finance Costs excl. FX).
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
Key Balance Sheet items and ratios
*1
NZ $mJan 24 Jan 23Jul 23
Net working capital226.2 244.4 219.7
Inventories313.6 318.8 290.4
Current trade and other receivables78.4 90.6 102.7
Current trade and other payables(165.8) (165.0) (173.4)
Net work ing capital % of sales22.1% 21.8% 19.9%
Stock Turns
*2
1.32x 1.61x 1.54x
Net Debt(96.2) (84.9) (55.7)
Leverage Ratio
*3
1.3x 0.7x 0.5x
Net Debt to Equity
*4
10.6% 9.4% 6.2%
Fixed Charge Cover
*5
1.44x 1.96x 1.69x
Equity809.5 822.1 841.6

CASH FLOW
12
0.0
14.2
21.3
21.3
0.0-
21.3
21.3
21.4
-
35.5
42.5
42.7
-
FY20FY21FY22FY23FY24
Dividends declared (NZ $m)
InterimFinal
Dividends declared (NZ cents per share)
Interim-2.03.03.0-
Final-3.03.03.0
Total-5.06.06.0
•Expecting an unwind of inventory to underpin traditionally strong operating cashflow generation in the second half year.
•No interim dividend declared as a result of the 1H FY24 operating performance.
•Dividend policy remains aligned to 1H / 2H earnings weighting, with a target payout ratio 50% to 70% of NPAT.
1.Adjusted for impacts of adopting IFRS 16.
2.Dividends paid include $0.7m to a minority interest partner.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
Cash Flow (NZ $m) 1H FY241H FY23
NPAT(9.7)14.0
Change in working capital(13.5)(42.3)
Non-cash items65.458.2
Operating cash flow42.229.9
Adjusted operating cash flow
*1
(2.9)(11.8)
Key Line Items:1H FY241H FY23
Net interest paid (including facility fees)
*1
(6.0)(3.6)
Net income taxes paid(3.8)(7.4)
Capital expenditure(15.2)(14.8)
Dividends paid
*2
(22.0)(22.0)

BRANDS
13
SECTION 3
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

RIP CURL PROFIT & LOSS
14
SALES IMPACTED BY WHOLESALE CUSTOMER CAUTION
•Total sales -9.2%, cycling record sales last year (1H FY23 sales growth
+18.8% YOY).
•Direct-to-consumer sales (incl. online) -5.0%, reflecting weakened consumer
sentiment in key global markets. Stronger results in Europe, Asia and South
America.
•Online sales +4.3%. Sales remain significantly above pre-COVID levels.
•Wholesale sales -14.1%, as wholesale accounts reduce their inventory
holdings in response to the challenging consumer environment.
•We expect the wholesale customer inventory reduction cycle to end this
financial year, giving us a more positive FY25 outlook in the wholesale
channel.
GROSS MARGIN AND OPERATING EXPENSES WELL CONTROLLED
•Gross margin increased +90 bps (+0.9% of sales) reflecting improved pricing
and freight rates, plus exiting low margin business in North America and
Europe.
•Operating expenses tightly managed despite continued inflation pressure.
Operating expenses benefited from restructuring implemented last year and
lower variable costs associated with lower sales.
1.The impacts of IFRS 16 and the notional amortisation of customer relationships are excluded from underlying results. Refer to Appendix 2 for a reconciliation of Statutory to Underlying results.
2.1H FY20 includes 3 months of Rip Curl post-acquisition.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
134.9
251.1
257.8
306.4
278.3
6.5%
11.5%
13.8%
9.6%
10.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
1H
FY20*
1H
FY21
1H
FY22
1H
FY23
1H
FY24
SALES
RetailOnline
WholesaleLicensing / Other
Total SalesOnline % of DTC
18.448.733.737.627.4
13.7%
19.4%
13.1%
12.3%
9.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
1H
FY20*
1H
FY21
1H
FY22
1H
FY23
1H
FY24
EBITDA
EBITDAEBITDA margin
NZ $m1H FY241H FY23Var %
SALES278.3306.4(9.2%)
EBITDA (underlying
*1
)
27.437.6(27.0%)
EBITDA margin %
9.9%
12.3%
EBIT (underlying
*1
)
20.831.5(34.0%)
EBIT margin %
7.5%
10.3%
Owned stores169170

KATHMANDU PROFIT & LOSS
15
SALES REFLECT ONGOING WEAKNESS IN CONSUMER SENTIMENT
•Sales have softened since June 2023. A combination of weaker consumer
sentiment, the warmest winter on record in Australia and reliance on winter
weight product has resulted in a disappointing first half.
•Total sales -21.5%, cycling strong sales growth last year (1H FY23 sales growth
+51.2% YOY). Australia -22.9%
*2
, New Zealand -15.9%.
•Online sales decreased by -36.9% to $16.4m, as consumers returned to
shopping in stores. Online penetration at 10.9% of DTC sales remains above pre-
COVID levels. Improvement in online sales performance is a priority.
•International sales $1.7m. Kathmandu’s International sales target of $100m
remains a longer-term goal. Our immediate focus is on stabilising and building the
local ANZ business as a priority.
GROSS MARGIN
•Gross margin decreased -240 bps (-2.4% of sales), driven by specific clearance
of end of line products in August. Excluding August, gross margin for the period
was -50 bps (-0.5% of sales) lower YOY despite currency headwinds.
OPERATING EXPENSES WELL CONTROLLED
•Operating expenses tightly managed despite continued inflation pressure.
Operating expenses almost $10m lower YOY, benefiting from restructuring
implemented last year and lower variable costs associated with lower sales.
KATHMANDU’S RECENT CHALLENGES AND FOCUS AREAS ARE DETAILED IN
SECTION 5 OF THIS PRESENTATION
1.The impacts of IFRS 16 are excluded from underlying results. Refer to Appendix 2 for a reconciliation of
Statutory to Underlying results.
2.At constant exchange rates.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
196.5
129.3
128.3
194.0
152.3
10.6%
14.3%
21.0%
13.6%
10.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0.0
50.0
100.0
150.0
200.0
1H
FY20
1H
FY21
1H
FY22
1H
FY23
1H
FY24
SALES
RetailOnline
WholesaleTotal Sales
Online % of DTC
18.30.5
-18.3
12.3
-8.3
9.3%
0.4%
-14.3%
6.3%
-5.5%
-20.0%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
-25.0
-20.0
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
1H
FY20
1H
FY21
1H
FY22
1H
FY23
1H
FY24
EBITDA
EBITDAEBITDA margin
NZ $m1H FY241H FY23Var %
SALES152.3194.0(21.5%)
EBITDA (underlying
*1
)
(8.3)12.3-
EBITDA margin %
-5.5%
6.3%
EBIT (underlying
*1
)
(18.0)2.7-
EBIT margin %
-11.8%
1.4%
Owned stores160155

OBOZ PROFIT & LOSS
16
SALES IMPACTED BY WHOLESALE CUSTOMER CAUTION
•Total sales -20.0%, cycling record sales last year (1H FY23 sales growth
+124.3% YOY).
•Strong online sales growth +34.2%, benefiting from strategic promotional
activity.
•Wholesale -23.5% as wholesale customers reduce their inventory holdings
in response to the challenging consumer environment.
GROSS MARGIN AND OPERATING EXPENSES WELL CONTROLLED
•Gross margin increased +450 bps (+4.5% of sales) reflecting lower freight
rates, improved channel mix, improved pricing and new product
introductions.
•Operating expenses include investment in brand, online and product to
support long-term growth objectives, including international expansion.
•Operating expense investment to be leveraged with future sales growth
opportunities as the market recovers.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
32.3
30.4
21.2
47.5
38.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
1H
FY20
1H
FY21
1H
FY22
1H
FY23
1H
FY24
SALES
OnlineWholesaleTotal Sales
5.13.8
0.0
2.9
-0.1
15.8%
12.5%
-0.2%
6.1%
-0.1%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
1H
FY20
1H
FY21
1H
FY22
1H
FY23
1H
FY24
EBITDA
EBITDAEBITDA margin
1.The impacts of IFRS 16 and the notional amortisation of customer relationships are excluded from underlying results. Refer to Appendix 2 for a reconciliation of Statutory to Underlying results.
NZ $m1H FY241H FY23Var %
SALES38.047.5(20.0%)
EBITDA (underlying
*1
)
(0.1)2.9-
EBITDA margin %
-0.1%
6.1%
EBIT (underlying
*1
)
(0.5)2.5-
EBIT margin %
-1.2%
5.2%

STRATEGY UPDATE
17
SECTION 4
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

STRATEGIC PILLARS REMAIN UNCHANGED
1818
BUILDING GLOBAL
BRANDS
Expand global footprint and
invest in world class brand and
customer experiences
ELEVATING
DIGITAL
Invest in Group digital
platforms to deliver a truly
world-class experience to
consumers, wholesale
customers, suppliers, and
our employees
OPERATIONAL
EXCELLENCE
Deliver operational excellence
to all brands across shared
group support functions
LEAD IN
ESG
Lead in environmental, social
and governance through
transparency and
accountability, focusing on our
pillars of Communities, Climate,
and Circularity
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

MEDIUM-TERMSHORT-TERM
KPI PROGRESS UPDATE
19
158
155155
158
160
Jan 22Jul 22Jan 23Jul 23Jan 24Target
KATHMANDU RETAIL STORE COUNT
~200
>>
19
7.8%
9.4%
11.3%
9.6%
7.4%
15.0%
Jan 22Jul 22Jan 23Jul 23Jan 24Target
EBITDA MARGIN
*2

% of sales
>>
1.All charts show rolling 12-month historical results.
2.Underlying EBITDA excluding the impact of IFRS 16 leases.
121.6
134.3
146.4
142.8
134.5
Jan 22Jul 22Jan 23Jul 23Jan 24Target
RIP CURL NORTH AMERICA SALES
NZ $m
~200
>>
20.4%
21.1%
21.8%
19.9%
22.1%
18.0%
Jan 22Jul 22Jan 23Jul 23Jan 24Target
WORKING CAPITAL
% of sales
>>
45.7
41.3
53.7
61.2
54.2
Jan 22Jul 22Jan 23Jul 23Jan 24Target
OBOZ SALES OPPORTUNITY
US $m
~100
>>
Kathmandu’s International Sales target of $100m remains a long-term goal. Our immediate focus is on stabilising and building the local ANZ business as a priority.
1H FY24 performance impacted progress toward
the Group’s KPI targets.
Strategic plans remain unchanged, with
confidence in the Group’s ability to drive towards
these targets as consumer sentiment improves.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

KATHMANDU
IN FOCUS
20
SECTION 5
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

KATHMANDU HISTORY
21
Kathmandu has faced challenging and inconsistent trading results over the last five years.
•FY19 Sales and EBITDA results were the best-ever for the Kathmandu brand.
•The following three years were all negatively impacted by COVID lockdowns:
•FY20 nearly 7,000 lost trading days in the second half.
•FY21 over 5,000 lost trading days.
•FY22 over 7,000 lost trading days in the first half.
•FY20 and beyond have all been negatively impacted by reduced inbound and outbound
tourism.
•A clear change in the ANZ outdoor competitive landscape in recent years.
•Financial results since June 2023 have been impacted by Australia’s warmest winter on record
and softened consumer sentiment.
•The rolling 12 months to May 2023 represent the most recent twelve months of uninterrupted
trade post-pandemic, and immediately prior to the warmest winter on record in Australia.
Kathmandu delivered $463m sales at almost 16% EBITDA margin.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
475.0
428.8
357.4
381.6
422.2
463.0
0.0
100.0
200.0
300.0
400.0
500.0
600.0
FY19FY20FY21FY22FY23Rolling 12
months
May 23
SALES (ANNUAL)
FY19FY20FY21FY22FY23Rolling 12 months May 23
89.666.937.936.452.573.0
18.9%
15.6%
10.6%
9.5%
12.4%
15.8%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
FY19FY20FY21FY22FY23Rolling 12
months
May 23
EBITDA (ANNUAL)
EBITDAEBITDA margin
COVID
COVID

PRODUCT
BRAND
OUR CHALLENGES
22
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
These challenges are an ongoing focus of the Kathmandu team
to improve execution and profitability.
•Reliance on winter weight product has increased, specifically outerwear.
•Breadth and depth of core categories insufficient (beyond outerwear). Outerwear inventory
investment overweighted vs. other key categories.
•Product innovation has not delivered commercial outcomes.
•Product development timeline had less flexibility for emerging market trends, product
developed on an industrystandard18-month timeline.
•Too much reliance on vertical brand products vs. leveraging third parties (including Oboz).
•Execution of the re-brand since 2021 has been inconsistent.
•Lack of connection with target consumers.
•Prior to ‘Out There Rewards’ launch, loyalty proposition had not fundamentally changed for
many years, and was becoming less effective.

REFINE BRAND EXECUTION
•Innovation and investment in broader categories to
address year-round needs.
•Faster and more regular product drops.
•Expand third party brand strategy..
•Brand marketing more authentic to the outdoors.
•Loyalty: ‘Out thererewards’launched. Continue to
expand with further targeted personalisation.
•Premium Brand and Product experience in store and
online – bringing to life an authentic outdoors
connection, with technical and sustainable features.
OUR FOCUS
23
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
People: Continue to build our talent pool, with specialist expertise.
MEDIUM-TERM
AMBITION:
$500m Sales
16% EBITDA
margin
We are committed to Kathmandu being a premium brand, and the continued market leader in ANZ.
REDUCE RELIANCE ON OUTERWEAR
PRODUCT
BRAND

OUTLOOK
24
SECTION 6
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

CONTINUED BRAND INNOVATION
RIP CURL: 'THE SEARCH'
•Reigniting 'The Search' as the primary
product, creative and marketing vehicle.
•Product newness withcollaborations centred
around athletes with regional market focus.
•Creative and marketing vehicle using brand
DNA to expand consumer reach and drive
growth.
KATHMANDU: SEEKER, INSULATED
TRAILHEAD, EPIQ SE
•Our new Seeker range is an insulated active
jacket and vest that are designed for warmth
during outdoor pursuits.
•Insulated Trailhead the first insulated
activewear jacket for the brand.
•Launch of new EPIQ SE which is made using a
fabric drawn from end-of-life tyres.
25
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
OBOZ: COTTONWOOD
•Launched the new Cottonwood range,
thebrand'smost sustainable hiker to date.
•Versatility of offer as shoe can be worn on
trails or in town.
•Important direction with enhanced regulation
coming out ofNorth American and European
markets.

TRADING UPDATE AND OUTLOOK
26
TOTAL SALES
CHANGE YOY
MONTH OF
FEB 24
FEB 24
YTD
Rip Curl-1.7%-8.2%
Kathmandu-2.8%-19.9%
Oboz-13.3%-18.8%
Group-3.5%-13.2%
OUTLOOK
•In the second half the Group will be cycling less challenging sales performance last year,
particularly Kathmandu in the fourth quarter.
•Kathmandu sales performance remains an immediate priority as we approach the key
winter trading period. We expect to see progress in the second half and into FY25 as we
launch new innovative products, quick to market programmes, elevated visual
merchandising, increased personalisation through the recently released “Out There
Rewards” and an expanded third-party brand strategy.
•We expect the Rip Curl and Oboz wholesale customer inventory reduction cycle to end
this financial year, giving us a more positive FY25 outlook in the wholesale channel.
•Ongoing reduction of working capital expected to drive strong cash flow generation.
•We believe with our portfolio of iconic global outdoor brands and leadership in
sustainability, we remain a unique investment proposition and well-placed for the future.
•February is not a significant trading month.
•In the month of February, all brands have improved YTD
sales trends.
•February sales trends have continued into the start of
March.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

QUESTIONS
27
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

APPENDICES
28
SECTION 7
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

OWNER OF
LEADING GLOBAL
OUTDOOR BRANDS
29
OUR PURPOSE
Inspiring people to explore
and love the outdoors
OUR VISION
To be the leading family of
global outdoor brands -
designed for purpose, driven
by innovation, best for people
and planet
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N

BRANDS WITH GLOBAL REACH
30
We operate over 300 stores globally, and our brands are sold in over 8,000 locations
NORTH AMERICA
~$225m Sales
30 Owned Stores
24 Licensed Stores
+3,800 Wholesale Doors
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
Global office locations
AUSTRALASIA
~$630m Sales (~80% Australia)
269 Owned Stores
21 Licensed Stores
+1,000 Wholesale Doors
ASIA
~$40m Sales
77 Licensed and JV stores
+600 Wholesale Doors
EUROPE
~$105m Sales
24 Owned Stores
13 Licensed Stores
+2,000 Wholesale Doors
SOUTH AMERICA
~$20m Sales
6 Owned Stores
98 Licensed Stores
+800 Wholesale Doors
AFRICA / MIDDLE EAST
35 Licensed Stores

OWNED STORES BY BRAND
31
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
165
162
160
158
155155
158
160
Jul 20Jan 21Jul 21Jan 22Jul 22Jan 23Jul 23Jan 24
KATHMANDU OWNED STORE COUNT
160
162
160
162
161
170
169169
Jul 20Jan 21Jul 21Jan 22Jul 22Jan 23Jul 23Jan 24
RIP CURL OWNED STORE COUNT

APPENDIX 1: STATUTORY TO UNDERLYING
PROFIT & LOSS
32
1.Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results.
2.Notional amortisation of Rip Curl and Oboz customer relationships are excluded from Underlying results.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
GROUP1H FY241H FY23
IFRS 16Amortisation ofOtherIFRS 16Amortisation ofOther
NZ $mStatutoryLeases
*1
Customer Relationships
*2
Abnormals
UnderlyingStatutoryLeases
*1
Customer Relationships
*2
Abnormals
Underlying
SALES
468.6 - - - 468.6 547.9 - - - 547.9
GROSS PROFIT
275.7 - - - 275.7 321.8 - - - 321.8
Gross margin58.8%58.8%58.7%58.7%
OPERATING EXPENSES
(211.3) (49.3) - - (260.6) (230.9) (45.5) - - (276.4)
% of Sales45.1%55.6%42.1%50.4%
EBITDA
64.4 (49.3) - - 15.1 90.8 (45.5) - - 45.3
EBITDA margin %13.7%3.2%16.6%8.3%
EBIT
0.5 (4.8) 2.6 - (1.7) 31.4 (4.7) 2.7 - 29.3
EBIT margin %0.1%-0.4%5.7%5.4%
NPAT
(9.7) 0.9 1.8 (6.9) 14.0 0.6 1.9 16.5

APPENDIX 2: SEGMENT NOTE
33
1.Statutory results include the impact of IFRS 16 leases. For comparability, the impact of IFRS 16 is excluded from Underlying results.
2.Notional amortisation of Rip Curl and Oboz customer relationships are excluded from Underlying results.
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
1H FY241H FY231H FY24
SALES (NZ $'000)Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
SALES per segment note
278,315 152,324 38,005 - 468,644 306,424 193,968 47,532 - 547,924
SALES (Underlying)
278,315 152,324 38,005 - 468,644 306,424 193,968 47,532 - 547,924
EBITDA (NZ $'000)Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
EBITDA per segment note
47,462 20,684 201 (3,972) 64,375 57,538 37,570 3,101 (7,364) 90,845
IFRS 16 Leases
*1
(20,048) (29,006) (252) - (49,306) (19,968) (25,314) (226) - (45,508)
Amortisation of Customer Relationships
*2
- - - - - - - - - -
EBITDA (Underlying)
27,414 (8,322) (51) (3,972) 15,069 37,570 12,256 2,875 (7,364) 45,337
EBIT (NZ $'000)Rip CurlKathmanduObozCorporateTotalRip CurlKathmanduObozCorporateTotal
EBIT per segment note
19,216 (14,045) (639) (4,052) 480 30,505 5,920 2,310 (7,364) 31,371
IFRS 16 Leases
*1
(922) (3,980) 68 - (4,834) (1,540) (3,241) 67 - (4,714)
Amortisation of Customer Relationships
*2
2,527 - 102 - 2,629 2,571 - 101 - 2,672
EBIT (Underlying)
20,821 (18,025) (469) (4,052) (1,725) 31,536 2,679 2,478 (7,364) 29,329

APPENDIX 3: BALANCE SHEET
34
1 H F Y 2 4 R E S U L T S P R E S E N T A T I O N
Balance Sheet (NZ $m)Jan 24 Jan 23Jul 23
Inventories313.6 318.8 290.4
Property, plant and equipment84.7 77.9 82.9
Right of Use Asset (IFRS 16)257.5 264.7 270.3
Intangible assets696.2 704.8 704.4
Other assets119.4 117.0 136.0
Total assets (excl. cash)1,471.4 1,483.2 1,484.0
Net interest bearing liabilities and cash(96.2) (84.9) (55.7)
Lease Liability (IFRS 16)(289.5) (297.5) (302.1)
Other non-current liabilities(109.0) (107.8) (109.3)
Current liabilities(167.2) (170.9) (175.3)
Total liabilities (net of cash)(661.9) (661.1) (642.4)
Net assets809.5 822.1 841.6

IMPORTANT NOTICE AND DISCLOSURE
35
This presentation prepared by KMD Brands Limited (the “Company” or the “Group”) (ASX/NZX:KMD) provides additional comment on the financial statements of the Company, and
accompanying information released to the market. As such, it should be read in conjunction with the explanations and views in those documents.
This presentation is not a prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction.Past performance is not indicative of
future performance and no guarantee of future returns is implied or given.
The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. This presentation
has been prepared without taking into account the investment objectives, financial situation or specific needs of any particular person. Potential investors must make their own independent
assessment and investigation of the information contained in this presentation and should not rely on any statement or the adequacy or accuracy of the information provided.
This presentation includes certain “forward-looking statements” about the Company and the environment in which the Company operates. Forward-looking information is inherently uncertain
and subject to contingencies, known and unknown risks and uncertainties and other factors, many of which are outside of the Company’s control, and may involve significant elements of
subjective judgement and assumptions as to future events which may or may not be correct. A number of important factors could cause actual results or performance to differ materially from
the forward-looking statements. No assurance can be given that actual outcomes or performance will not materially differ from the forward-looking statements. The forward-looking
statements are based on information available to the Company as at the date of this presentation.
To the maximum extent permitted by law, none of the Company, its subsidiaries, directors, employees or agents accepts any liability, including, without limitation, any liability arising out of
fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied, is given as to the
accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects, statement or returns contained in this presentation. Such forecasts,
prospects, statement or returns are by their nature subject to significant uncertainties and contingencies. Actual future events may vary from those included in this presentation.
The statements and information in this presentation are made only as at the date of this presentation unless otherwise stated and remain subject to change without notice. Some of the
information in this presentation is based on unaudited financial data which may be subject to change. Information in this presentation is rounded to the nearest hundred thousand dollars,
whereas the financial statements of the Company are rounded to the nearest thousand dollars. Rounding differences may arise in totals, both dollars and percentages.
All intellectual property, proprietary and other rights and interests in this presentation are owned by the Company.
All currency amounts in this presentation are in NZD unless stated otherwise.
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