KMD Brands’ (NZX:KMD) shares are in green today, here’s why

Highlights:

• KMD Brands released its FY22 results today (20 September).
• The company has witnessed growth in its Group sales.
• It will pay a final dividend in November.

KMD Brands Limited (NZX:KMD), which specialises in quality apparel, and travel and adventure equipment, today (20 September) published its FY22 results.

Source: © Kbuntu | Megapixl.com

Group sales

For the year ended 31 July 2022, the Group sales grew to 6.2% to NZ$979.8 million, driven by continued growth in Rip Curl sales and strong demand for Oboz products, among others. Its statutory NPAT clocked NZ$36.8 million.

The company's Group CEO and Managing Director, Michael Daly, said that despite COVID-19-related challenges, KMD delivered a strong performance, making significant progress in building a global brand, elevating its digital presence as well as leveraging its operational excellence.

Navigated through supply constraints

The results revealed that like most other global brands, KMD too experienced high international freight costs as well as raw material cost pressures. However, owing to sales growth in the Kathmandu and Rip Curl brands, the Company was able to maintain a gross margin of 58.9%.

Winter season

As per the results, winter season was another driver for Kathmandu’s latest performance, with Q4 sales being above the FY19 level. 

Dividend declaration

The company said that it had declared 3.0 cps as a final dividend to its shareholders, payable on 25 November, with 10 November being the record date. It will take the total FY22 dividend to 6.0 cps.

Focus on ESG

KMD continues to focus on sustainability initiatives and is committed to delivering positive growth for both its people as well as the community, claims its Group CEO and Managing Director.

The Company has bagged several awards for environmental and product innovation, such as the Deloitte New Zealand Top 200 Sustainable Business Leadership award, among others.

Bottom Line

With the reopening of the country's borders and resumption of international travel, KMD expects to improve on results in the future.

On 20 September, at the time of writing, KMD Brands was up 2.00% to NZ$1.020.