KMD Brands (KMD) AGM 2024 summary

Opening remarks and agenda

• Meeting opened with confirmation of quorum, introduction of directors and key executives, and explanation of online and in-person participation procedures.

• Agenda included Chairman's address, Group CEO's address, financial review, strategy update, four resolutions, and Q&A sessions.

Financial performance review

• FY24 total sales were $979.4m, down 11.2% from FY23, with gross margin at 58.9%.

• Underlying EBITDA was $50.0m, a 52.8% decrease year-on-year; statutory NPAT loss was $48.3m, or $1.1m excluding one-off items.

• Operating expenses reduced by NZD 19.6 million, and inventory was cut by NZD 23.5 million.

• Net debt stood at $59.7m with $230m bank facility headroom; net working capital reduced to $198.3m.

• Q1 FY25 group sales declined 5.8% year-on-year, with direct-to-consumer sales outperforming wholesale and group gross margin improving.

Board and executive committee updates

• Brent Scrimshaw, current Non-Executive Director, will become Group CEO in the second half of FY25.

• Michael Daly, outgoing CEO, will remain for a transition period and then resign.

• Board comprises David Kirk (Chairman), Michael Daly (Group CEO/MD), and five non-executive directors.

• Lachlan Farren to serve as interim Rip Curl CEO during the search for a permanent replacement.