Kid (KID) Q3 2024 earnings summary

Executive summary

• Group revenues reached an all-time high of NOK 886.9 million in Q3 2024, up 6.7% year-over-year, driven by strong performance in Kid Interior and new category launches, while Hemtex faced a decline due to last year's extraordinary campaign.

• Gross margin remained robust and flat at 62.1%, one of the highest for Q3 historically.

• EBITDA decreased by NOK 5 million to NOK 236.4 million, with EPS at 1.73 versus 2.23 last year.

• Cash flow from operations was NOK 110.4 million, impacted by inventory buildup for Q4 and Christmas season.

• Dividend of NOK 3.00 per share declared as a half-year prepayment, to be paid in November 2024.

Financial highlights

• Revenue increased by NOK 56 million year-over-year, with like-for-like growth of 3%.

• Online revenue share stable at 11.4%, with modest year-over-year growth.

• Categories introduced since 2022 contributed NOK 29.3 million in Q3 revenues.

• Operating expenses rose by 14.6% year-over-year, mainly due to higher personnel, bonus, logistics, and growth initiatives.

• Net interest-bearing debt (excl. IFRS 16) at NOK 784.3 million; financial gearing ratio improved to 1.3.

Outlook and guidance

• Continued investment in store expansion and renovations, with several new and Extended stores planned in Norway and Sweden.

• Inventory buildup is planned to ensure product availability for Q4; majority of increase due to early deliveries.

• Management expects continued growth in Kid Interior, supported by new categories and omnichannel initiatives.

• Hemtex performance is expected to normalize after last year's campaign effect.

• Warehouse project in Sweden is on track, with operations for Hemtex starting Q1 2025 and full group integration by mid-2025.