KMD Brands (KMD) AGM 2024 summary

Opening remarks and agenda

• Meeting opened with confirmation of quorum, introduction of directors and key executives, and outlined the agenda including Chairman's and Group CEO's addresses, review of FY24, strategy, and four shareholder resolutions.

• Voting procedures for both in-person and online shareholders were explained, and online voting was officially opened.

Financial performance review

• FY24 total sales were $979.4m, down 11.2% from FY23, mainly due to weak consumer sentiment and global economic headwinds.

• Gross margin was 58.9%, down only 0.2%, with strong performance from Rip Curl and Oboz.

• 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.

• Net debt at year-end was $59.7m, with $230m in available funding 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, a current non-executive director, will become Group CEO in the second half of FY25, ensuring continuity.

• Michael Daly, outgoing CEO, was acknowledged for his 22 years of service and will remain for a transition period.

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

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