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Highlights
- Strategic goals set by Kathmandu Holdings for the FY22 period.
- Sustainability, growth, customer service at the centre of the Company’s strategy.
- Plans made by Kathmandu Holdings to recover from the previous year’s uncertainties.
Amongst a host of retail businesses that have had a rather challenging year, Kathmandu Holdings Limited (NZX:KMD; ASX:KMD) has borne the brunt of the supply chain disruption, store, and border closures across the country, that led to bringing their business to a standstill for months.
Image source: © 2021 Kalkine Media New Zealand Lt; data source: EODHD/Others
Financial statistics
The recently declared FY21 results have been indicative of the business done by the Company.
Financially speaking, the sales were seen up by 15% at NZ$922.8 million, while the underlying EBITDA was up 35.9% at NZ$113.3 million. The underlying NPAT was NZ$66.3 million while the Net cash balance was NZ$37.0 million.
In June 2021, the Company further announced store closures due to the announcement of Level 4 lockdown in different parts of the country.
Read more: Are the 5 NZX retail stocks benefitting amid the pandemic?
Vision for FY22
In terms of priorities set for the FY22 building, a stronger global market is one of the main resolutions.
By raising marketing and sustainability investments, launching projects in Canada and mainland Europe, the company aims at bringing new and innovative products that will help in increasing the growth potential of the company.
Increased Global presence
The Company also aims at increasing its global presence by investing in new brands and enhanced customer experiences. It further aims at delivering excellence at the operational level through offering adequate group support.
Kathmandu Holdings further targets aligning technical platforms of ANZ amongst various brands aiming at an NZ$10-million FY22 capital expenditure for core systems. Another aim is to search for achievablable expense and margin targets, which lead to a 15% margin in EBITDA.
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Online is the way to go
With the global shift towards online shopping during the pandemic, even more so than ever, most retail businesses are working towards further strengthening that aspect of their existence to ensure that the trade is least hampered even in times of uncertainties and lockdowns, etc.
The Company has witnessed online sales growth of 31.3% for Rip Curl, while the Direct-to-customer sales growth for same store was 19.2%.
Read now: Which are 5 attractive NZX Retail stocks to explore in 2021?
Green living
Keeping sustainability in mind, the Company has long-term environmental goals. Another aim is to maintain a flexible balance sheet in order to manage any future COVID-19-related uncertainties so that capital return and capacity options are open to remain an open channel for the company.
Bottom line
The aim of the Company is to fully recover from last year’s losses and a new legacy for itself by enhancing performance, inclusivity, sustainable plans, and ambitious new product launches.
On 30 September 2021, the stock last traded at NZ$1.590, up by 1.27%.