KMD - Kathmandu

[winner69]

I reckon $39m-$40m profit which puts them on a 13.5-14 P/E

If you take the average of the two npat numbers about spot on rawz

NPAT $36.6m but in KMD lingo that’s really $43.3m

And a really really positive commentary so no worries

http://nzx-prod-s7fsd7f98s.s3-websit...516/403312.pdf

[winner69]

Bit of slow start to new year with August sales down 6% on last year ….surprised they didn’t say that August last year was a huge month so not really comparable

[Rawz]

Sell $120m more stuff. Make same amount as FY22

[percy]

I was surprised by the low 1.54 stock turns.
Was expecting a bit better result.In the meantime I will continue to hold,as their outlook is positive,as is their cash flow from operations.
Net cash inflow from operating activities $147,588,000 up from $81,808,000..
FY24 OUTLOOK
• Group sales for Aug 23 -6.4% below last year.
• Kathmandu Q4 sales trend continues, but consistent with pre-pandemic sales levels for this time of year.
• Rip Curl and Oboz have seen good momentum in direct-to-consumer sales.
• Strategic plans remain unchanged, with key executive appointments (Kathmandu CEO, Chief Information Officer, and Chief Digital Officer) to drive strategy
execution.
• Ongoing new store opportunities. Minimum of 8 committed new stores in the first half.
• Margin underpinned by excess supplier capacity in market, reducing international freight cost, channel mix to DTC, offsetting any short-term FX impacts.
• Continued progress towards our 15% underlying EBITDA margin target, with right-sized cost base in place.
• Ongoing reduction of working capital to 18% of sales target to drive strong cash flow generation.
• Despite the challenging consumer sentiment, we are well positioned with tailwinds from continued return to travel, positive impact from the launch of innovative
products and the outdoor lifestyle trend post-pandemic.

[BlackPeter]

If you take the average of the two npat numbers about spot on rawz

NPAT $36.6m but in KMD lingo that’s really $43.3m

And a really really positive commentary so no worries

http://nzx-prod-s7fsd7f98s.s3-websit...516/403312.pdf

Yep, certainly a positive rave in these distressed times ... great commentary, and good to see that they managed to achieve the expected revenue growth and sort of maintained their margins!

While a 6 cent divvie (for the full year) is nice for holders, its a bit worrying to see that their EPS (roughly 5 cents, depending on how one counts the shares) is below that. Hope they plan to fund this with an amazing summer sales season rather than putting the additional divvie on their (so far good looking) balance sheet.

Sounds however, they look with faith into the future ...

Dividend trap or deep value game?

[winner69]

Sell $120m more stuff. Make same amount as FY22

Hey rawz …..don’t spoil the fun ….it was a great year

[winner69]

Rent reviews saw an overall reduction over 63 sites …..that’s good

[winner69]

F23 npat if 37m or 43m still a lot less than the 51m and 58m reported in 2018 and 2019 …and they even made 42m in 2014

Maybe a sign of what’s possible in coming years …….you’d have to say acquisitions haven’t added anything to bottom line yet

[winner69]

…….

Dividend trap or deep value game?

Surely a deep value play

[Rawz]

ROE= 4.3%
FCF Yield= 4.2%

I dare not calc the ROIC because i assume its value destruction