In This Article:
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Revenue: NOK797.8 million in Q2, a 10.2% increase compared to last year.
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Revenue Growth (First Half 2024): 12.4% compared to last year.
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Gross Margin: 63.2% in the quarter.
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EBITDA: NOK201.5 million, a 20.9% increase.
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Earnings Per Share (EPS): NOK1.19.
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Cash Flow from Operations: NOK111.2 million, impacted by planned inventory buildup.
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Online Revenue Growth: 9.8% increase, excluding currency effects.
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Like-for-Like Growth: 9.2% overall; 9.5% for Kid; 8.7% for Hemtex.
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Store Projects: Completed six store projects and opened four new stores.
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Membership Portfolio: Reached 3.2 million members, a 10.4% increase.
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Net Interest Bearing Debt: NOK756 million, with a financial gearing ratio of 1.22.
Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Kid ASA (FRA:97Q) reported its fourth consecutive quarter of double-digit growth, reaching an all-time high revenue of NOK797.8 million.
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The company experienced a revenue growth of 12.4% in the first half of 2024 compared to the previous year.
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EBITDA increased to NOK201.5 million, with a strong margin of 63.2%, and EPS strengthened to NOK1.19.
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The customer loyalty program saw positive results, with membership reaching 3.2 million, a 10.4% increase from last year.
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Kid ASA is expanding its market reach by launching a German language website and an English language site targeting European countries, indicating potential growth beyond the Nordic region.
Negative Points
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The second half of 2024 faces tougher comparable growth due to a strong performance in the second half of 2023.
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The strong dollar and higher freight costs due to unrest in the Red Sea negatively impacted costs, although price adjustments have so far compensated.
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Cash flow from operations was impacted by a planned inventory buildup, which could affect liquidity.
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The company faces challenges in securing larger store locations with favorable lease terms, impacting expansion plans.
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The competitive landscape in Germany poses challenges as Kid ASA enters this new market with its e-commerce strategy.
Q & A Highlights
Q: The European expansion is the most interesting news today. Can you talk about why you have chosen Germany for marketing investments and also the competitive landscape in Germany? A: We are launching a German language website with targeted marketing investments in Germany. The Nordic style trend is attractive in Germany, and our product portfolio is expected to be commercial there. This is a low-risk investment as our e-commerce platform is tailored for new languages and geographic areas. We are excited but humble about entering new markets.