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 offset by Hemtex's decline due to last year's campaign.

• Gross margin remained stable at 62.1%, while EBITDA decreased by NOK 5.0 million to NOK 236.4 million due to higher operating expenses.

• EPS was NOK 1.73, down from NOK 2.23 last year; cash flow from operations was NOK 110.4 million, impacted by inventory build-up for Q4.

• Dividend of NOK 3.00 per share paid as an advance for 2024 results.

Financial highlights

• Revenue: NOK 886.9 million (+6.7% year-over-year); like-for-like growth 3.0%.

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

• EBITDA margin was 26.6%, down from 29.0% last year.

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

• Cash and available credit facilities totaled NOK 329.4 million at quarter-end.

Outlook and guidance

• Inventory build-up planned to ensure Q4 product availability and mitigate freight disruptions.

• Continued investment in store expansion and renovations, with multiple projects in Norway and Sweden for Q4 and H1 2025.

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

• CEO Anders Fjeld to resign by May 2025.