Kathmandu Holdings Limited (ASX: KMD) recently announced its financial results for the year end 30 June 2018. Due to improved promotional executions and enhanced in-store customer experience, the total sales of the Company increased by 11.7% from NZD$445.3m in 2017 to NZD$497.4m in 2018. The Gross profit of the company which was NZD$276.2 in 2017 increased by 14% to NZD$315.5m in 2017. However, the operating expenses also increased from NZD$205.4m in 2017 to NZD$225.7m in 2018. The increase in the operating expenses is due to expenses on store relocations and developing new stores and Year-on Year exchange rate impact of NZD$41.4m. The EBITDA also increased from NZD$70.8m in 2017 to NZD$89.8m in 2018. The EBIT increased from NZD$57m in 2017 to NZD$74.6m in 2018. In the FY 2018, the company has experienced a decent top line growth and focused on cost control due to which the NPAT of the company has been increased from $38m in 2017 to NZD$50.5m in 2018. The company has declared a dividend of NZ 11.0 cents per share which will be paid on 19 November 2018. The full year dividend is NZ 15.0 cents per share which is an increase of 15.4% than the previous year. The Capital expenditure of the company has been increased to NZD$16.7m from NZD$13.3m. The Operating cash flow of the company which was NZD$67.3m in 2017 has been increased to NZD$75.6m. The Net debt has increased from NZD$6.9m from 2018 to NZD$31.4m. The share price of the company increased by 0.6999% on 18 September 2018 after the release of 2018 financial year results.
Thus, the highlight of the result banked upon the management of sales growth while the gross margins were improved and now the group aims to have an accelerated international growth based on its Oboz acquisition.
KMD’s share price was $2.880 at market capitalization of 645.73 million as on 18 September 2018.
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