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Kid ASA
Quarterly Report • Nov 12, 2024
3642_rns_2024-11-12_bb720784-d921-4612-beda-ebceb4c8551c.pdf
Quarterly Report
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GROUP REVENUES increased by 6.7% (13.1%) to MNOK 886.9. GROSS MARGIN was flat compared to last year with 62.1% (62.1%). OPEX increased by 14.6% (+3.3%).
EBITDA decreased by MNOK -5.0 to MNOK 236.4 (MNOK 241.4).
CASH FLOW from operations of MNOK 110.4 impacted by planned inventory build-up. HALF-YEAR DIVIDEND payment of NOK 3.00 per share, payable in November 2024.
Group revenues
Q3 was another strong quarter for the Kid Group, and we reached an all-time high revenues of MNOK 886.9, with notable growth in Kid Interior standing out. The revenue decline in Hemtex aligns with our expectations and previous communication, mainly due to the extraordinary "Hemtex 50 years" campaign last year, which was particularly impactful driving traffic to physical stores and online.
The revenue growth in Kid Interior is attributed to continuously category and omnichannel development initiatives, as well as store project activity involving refurbishment, relocation and/or expansion of existing stores. Online sales accounting for MNOK 101.4 (MNOK 97.2), representing an online share of 11.4% (11.7%). Categories introduced since 2022 accounted for MNOK 29.3 (MNOK 19.7) in revenues. New categories are important for enhancing sales of the existing assortment and driving customer traffic.
Category development
We observe positive trends across most categories, except for categories with major changes to the campaign plan this year. Notably, the bathroom and furniture categories have been key growth drivers in the quarter compared to last year. The bathroom initiative continues to drive growth, supported by new bathroom display furnishings, which are being rolled out in conjunction with store upgrades. Outdoor and garden furniture has been a positive driver this quarter. When isolating the impact of the "Hemtex 50 years" campaign in Hemtex, there is an underlying positive revenue growth in several categories compared to last year.
The Extended concept was successfully launched in Hemtex in the first quarter followed by madeto-measure technical sun screening in April. We are satisfied with the results since the launch and consider them to be important growth drivers for both Kid Interior and Hemtex.
Warehouse project in Sweden
The warehouse project in Sweden is progressing according to plan. We plan to initiate operations for Hemtex during Q1-25 from the new facilities, before the common warehouse will serve all markets for the Group medio 2025. The process
for the sale of the Swedish warehouse property is progressing as planned.
Store portfolio development
We continue to invest in our store portfolio fuelling future growth. The store project activity is high, and during the quarter we have completed three store projects in Kid Interior and Hemtex in total. We have no new stores opened this quarter. By the end of the quarter, we have in total signed contracts for nine new stores in Norway including six Extended stores, one new store in Sweden and one in Finland. These stores are estimated to open during 2024 and 2025.
Operating expenses
The operating cost base increased by MNOK 40.1 compared to third quarter last year. The increase is primarily due to increased bonus provision, store project activity, increased marketing spend, and logistic costs following volume of handled goods to prepare for Q4 and Christmas shopping season, along with a significant currency effect compared to last year.
Kid Interior Hemtex
| (Amounts million) in NOK |
Q3 2024 |
Q3 2023 |
Q1-Q3 2024 |
Q1-Q3 2023 |
FY 2023 |
|---|---|---|---|---|---|
| Revenue | 886.9 | 830.9 | 2,381.3 | 2,160.4 | 3,413.6 |
| ¹ Like-for-like growth including online sales |
% 3.0 |
% 12.9 |
% 8.1 |
% 0.0 |
% 5.5 |
| COGS | -336.3 | -315.1 | -897.9 | -855.2 | -1,314.3 |
| profit Gross |
550.6 | 515.8 | 1,483.3 | 1,305.3 | 2,099.3 |
| (%) Gross margin |
62.1% | 62.1% | 62.3% | 60.4% | 61.5% |
| Other operating income |
1.3 | 1.0 | 3.5 | 2.6 | 4.3 |
| Employee benefits expense |
-188.3 | -161.5 | -546.8 | -484.7 | -704.7 |
| Other operating expense |
-225.9 | -200.5 | -672.3 | -613.5 | -854.0 |
| Other effect operating expense - IFRS 16 |
98.7 | 86.6 | 294.7 | 254.9 | 339.6 |
| OPEX | -315.5 | -275.4 | -924.4 | -843.2 | -1,219.1 |
| EBITDA | 236.4 | 241.4 | 562.4 | 464.6 | 884.5 |
| (%) margin EBITDA |
26.6% | 29.0% | 23.6% | 21.5% | 25.9% |
| Depreciation | -27.7 | -23.8 | -85.3 | -65.9 | -92.6 |
| effect Depreciation - IFRS 16 |
-90.5 | -78.0 | -266.0 | -232.5 | -311.6 |
| EBIT | 118.2 | 139.6 | 211.1 | 166.2 | 480.4 |
| margin (%) EBIT |
13.3% | 16.8% | 8.9% | 7.7% | 14.1% |
| financial (expense) Net income |
-10.8 | -9.0 | -27.0 | -27.0 | -33.3 |
| financial effect Net expense - IFRS 16 |
-14.2 | -11.2 | -41.0 | -31.6 | -43.3 |
| Share of result from joint ventures |
-0.7 | -1.3 | -2.2 | -1.6 | -1.2 |
| Profit before tax |
92.5 | 118.0 | 140.9 | 105.9 | 402.5 |
| income Net |
70.2 | 90.6 | 109.5 | 80.4 | 313.8 |
| Earnings per share |
1.73 | 2.23 | 2.69 | 1.98 | 7.72 |
| financial Liabilities institutions to |
-784.2 | -747.5 | -784.2 | -747.5 | -521.7 |
| liabilities effect Lease - IFRS 16 |
-1,228.4 | -1,069.4 | -1,228.4 | -1,069.4 | -1,084.9 |
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 225.1 |
| bearing debt Net interest |
-2,012.6 | -1,816.9 | -2,012.6 | -1,816.9 | -1,381.5 |
Q3 revenues for the Group increased MNOK 56.0, representing a growth of 6.7%. Kid Interior performed particularly well this quarter, offset by Hemtex. This is in line with our previous communication and is mainly due to the extraordinary "Hemtex 50 years" campaign last year. The revenue growth is mainly attributed to number of customers in Norway to physical stores and online, in addition to basket size across all markets. These drivers resulted in a quarter with a like-for-like growth of 3.0%, measured on a constant currency basis. Gross margin development stable compared to last year. Operating expenses (OPEX) excl. IFRS 16 as percentage of revenues, increased 3.1 percentage points compared to Q3-23.
Group revenues
Total Group revenues increased by 6.7% (+13.1%), with positive growth in every month and we observe a slight improvement towards the end of the quarter. In constant currency, revenues increased by 4.4% (12.1%). Net new stores contributed positively. Across major categories with no changes in the
campaign plan, we are witnessing positive growth, particularly in bathroom and furniture.
The like-for-like revenue growth increase was 3.0% (+12.9%) in the quarter calculated with constant currency. Kid Interior experienced positive revenue development in the physical stores, but Hemtex experienced negative development mainly due to the extraordinary campaign driving significant traffic and revenues in stores last year.
Group online revenues increased by 1.4% (+26.8%) in the quarter representing 11.4% (11.7%) of total revenues. Kid Interior achieved a robust growth of 17.6% (+45.5%), while Hemtex online revenues declined by -15.4% (+11.2%).
Categories launched since 2022 accounted for MNOK 29.3 (MNOK 19.7) of revenues.
Gross margin
The Group deliver a flat gross margin development compared to previous
year, driven down by Kid Interior and up by Hemtex. The margin for the Group is strong in a historical perspective, and the development on segment level is explained by campaign activity plan.
Employee expenses increased by MNOK 26.8 to MNOK 188.3:
- MNOK 9.1 in LFL stores mainly due to general salary increase and increased working hours
- MNOK 1.7 increase from net new stores
- MNOK 5.1 due to higher accrued bonus than last year
- MNOK 2.1 in HQ costs due to general salary increase
- MNOK 5.0 in Logistics mainly due to increased activity level and preparation for Q4
- MNOK 3.8 due to changes in SEKNOK exchange rate
Other operating expenses increased by MNOK 13.3 to MNOK 127.2:
- MNOK 10.9 in LFL stores, mainly related to index adjustment of rental costs and store expansions
- MNOK 2.0 increase in net new stores
- MNOK 2.9 from increased marketing cost
- MNOK 3.0 in HQ costs mainly related to IT
- MNOK 1.2 in Logistics operating costs mainly due to increase in logistics operating materials in Norway
- MNOK -9.9 related to change in IFRS
16 effects, reflecting the increase in rental cost in Logistics, HQ and stores due to index regulations, re-negotiated contracts and net new stores
• MNOK 3.2 due to changes in SEKNOK exchange rate
EBITDA decreased by MNOK -5.0 to MNOK 236.4 mainly due to increased OPEX.
Depreciation increased compared to last year mainly due to investments in the warehouse in Sweden and IFRS 16 effect related to the rental portfolio.
Net financial expenses of MNOK 25.0 (MNOK 20.2) relates to net interest expenses of MNOK 8.1 (MNOK 7.8), net other financial expenses of MNOK 0.7 (MNOK 0.6), net FX expenses of MNOK 2.0 (MNOK 0.6) and IFRS 16 interest expenses of MNOK 14.2 (MNOK 11.2).
Liquidity and borrowings
Excluding IFRS 16 effects, net interestbearing debt was MNOK 784.3 (MNOK 747.5) at the end of the quarter, corresponding to a gearing ratio of 1.30x (1.72x) of LTM EBITDA. The Group had cash and available credit facilities of MNOK 329.4 (MNOK 271.1) as of 30
September 2024 and has a satisfactorily liquidity situation. The facilities include an unused term-loan facility of MNOK 125 related to investments in the Swedish warehouse.
Cash flow from operations in the period is impacted by planned inventory build-up during the quarter of MNOK 160.0. The inventory was 27.7% above quarter-end last year, which is mainly explained by earlier shipments arranged to ensure optimal execution of Q4 and the Christmas shopping season following the global freight situation and introduction of furniture and other category development initiatives. Investments reflect mainly CAPEX relating to store openings and projects. Cash flow from financing represents lease payments, net interests and use of overdraft facility.
Capital expenditures (CAPEX) amounted to MNOK 28.6 (MNOK 24.6) during Q3, mainly relating to store openings and refurbishments. Investments related to the warehouse project in Sweden accounted for MNOK 9.8 (MNOK 2.2) in the quarter.
Personell Other Opex
KID Interior
| (Amounts in NOK millions) | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | FY 2023 |
|---|---|---|---|---|---|
| Revenue | 562.9 | 517.8 | 1,501.0 | 1,354.4 | 2,122.9 |
| Revenue growth | 8.7 % | 13.1 % | 10.8 % | 5.8 % | 7.0 % |
| LFL growth including online sales | 7.0 % | 12.7 % | 9.5 % | 4.8 % | 6.1 % |
| COGS | -216.4 | -192.5 | -568.5 | -531.0 | -796.2 |
| Gross profit | 346.5 | 325.3 | 932.5 | 823.4 | 1,326.7 |
| Gross margin (%) | 61.6 % | 62.8 % | 62.1 % | 60.8 % | 62.5 % |
| Other operating revenue | 0.2 | 0.0 | 0.5 | 0.1 | 0.1 |
| Employee benefits expense | -116.2 | -98.2 | -335.0 | -295.9 | -436.5 |
| Other operating expense | -124.2 | -109.9 | -360.8 | -330.5 | -463.9 |
| Other operating expense - IFRS 16 effect | 53.6 | 49.7 | 160.3 | 143.0 | 189.2 |
| EBITDA | 159.9 | 166.9 | 397.5 | 340.1 | 615.5 |
| EBITDA margin (%) | 28.4 % | 32.2 % | 26.5 % | 25.1 % | 29.0 % |
| No. of shopping days | 7 9 | 7 9 | 227 | 227 | 306 |
| No. of physical stores at period end | 158 | 156 | 158 | 156 | 157 |
Hemtex
| (Amounts in NOK millions) | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | FY 2023 |
|---|---|---|---|---|---|
| Revenue | 324.0 | 313.1 | 880.2 | 806.0 | 1,290.7 |
| Revenue growth ¹ | -2.3% | 10.5 % | 6.3 % | -1.3% | 3.2 % |
| LFL growth including online sales ¹ | -3.5% | 13.3 % | 5.5 % | 1.0 % | 4.4 % |
| COGS | -119.9 | -122.7 | -329.4 | -324.1 | -518.0 |
| Gross profit | 204.1 | 190.4 | 550.8 | 481.9 | 772.6 |
| Gross margin (%) | 63.0 % | 60.8 % | 62.6 % | 59.8 % | 59.9 % |
| Other operating revenue | 1.2 | 1.0 | 3.0 | 2.5 | 4.2 |
| Employee benefits expense | -72.1 | -63.3 | -211.9 | -188.8 | -268.2 |
| Other operating expense | -101.7 | -90.6 | -311.5 | -283.0 | -390.0 |
| Other operating expense - IFRS 16 effect | 45.0 | 36.9 | 134.5 | 112.0 | 150.4 |
| EBITDA | 76.5 | 74.5 | 164.9 | 124.5 | 269.0 |
| EBITDA margin (%) | 23.5 % | 23.7 % | 18.7 % | 15.4 % | 20.8 % |
| No. of shopping days | 9 2 | 9 2 | 272 | 271 | 362 |
| No. of physical stores at period end (excl. franchise) | 117 | 117 | 117 | 117 | 119 |
*Fully-owned stores. Hemtex has an additional 11 franchise stores
Revenues increased compared to last year, mainly due to increased number of customers in both physical stores and online, in addition to basket size in physical stores. The number of shopping days was 79 (79) in total for the quarter.
Online revenues increased by +17.6% (+45.5%) to MNOK 59.8 (MNOK 50.8).
Gross margin decreased by -1.2 percentage points to 61.6%. The margin development is mainly due to changes in the campaign plan and slightly increased revenues from seasonal clearance sales this year.
Employee expenses increased by MNOK 18.0:
- MNOK 5.4 in LFL stores mainly due to general salary increase and increased store project activity
- MNOK 1.4 due to net new stores
- MNOK 3.7 due to bonus expenses
- MNOK 3.1 in HQ costs mainly due to general salary increase
- MNOK 4.4 in Logistics due to increased sales activity and preparation for Q4
Other operating expenses increased by MNOK 10.2 :
- MNOK 7.2 in LFL stores mainly related to index adjustment of rental costs, store expansions
- MNOK 1.5 in net new stores
- MNOK 2.7 from increased marketing cost due to change in the campaign activity plan
- MNOK 1.9 in HQ, mainly related to extended use of external consultants and legal fees
- MNOK 0.8 in Logistics mainly due to increase in logistics operating materials
- MNOK -3.9 related to change in IFRS 16 effects, reflecting the increase in rental cost included in Logistics, HQ and stores due to index regulations, re -negotiated contracts and net new stores
Revenues decreased, mainly due to reduced number of customers, partly offset by increased basket size. The reduction in customer traffic is due to the extraordinary "Hemtex 50 years" campaign last year, which was particularly impactful driving traffic to physical stores and online. The number of shopping days was the same as last year 92 (92).
The Extended concept was successfully launched in Hemtex in the first quarter followed by made-to-measure technical sun screening in April. We are satisfied with the results.
Online revenues decreased by -15.4% (+11.2%) to MNOK 41.6 (MNOK 49.1), based on a constant currency calculation. The decrease is mainly attributed to a change in the July campaign.
Hemtex 24h revenues increased by MNOK 2.0 compared to Q3-23.
Gross margin increased by 2.2 percentage points to 63.0%. The increase in margin is attributed to the change in campaign activity plan, where the "Hemtex 50 years" campaign was
extraordinary last year impacting the margin negatively.
Employee expenses increased by MNOK 8.8:
- MNOK 3.7 in LFL stores mainly due to increase in working hours, store project activity, as well as general salary increase
- MNOK 0.4 due to net new stores
- MNOK 1.3 due to higher accrued bonus than last year
- MNOK -1.0 in HQ due to a reduced number of employees
- MNOK 0.6 in Logistics due to new employees in the inhouse logistic operations in Sweden
- MNOK 3.8 due to changes in SEKNOK exchange rate
Other operating expenses increased by MNOK 3.0:
- MNOK 3.6 in LFL stores, mainly related to index adjustment of rental costs and store expansions
- MNOK 0.5 in net new stores
- MNOK 0.2 from increase of marketing cost due to change in the campaign activity plan
- MNOK 1.1 in HQ mainly due to increased IT cost and services provided by HQ in Norway, partly
offset by less use of external consultants
- MNOK 0.4 in Logistics due to rebate in rental costs last year
- MNOK -6.0 related to change in IFRS 16 effects, reflecting the increase in rental cost in Logistics, HQ and stores due to index regulations, renegotiated contracts and net new stores
- MNOK 3.2 due to changes in SEKNOK exchange rate
Anders Fjeld has informed the Board that he will resign as CEO of Kid ASA, to take the position as CEO of Sport Holding AS, a company controlled by Gjelsten Holding AS and O.N. Sunde A/S.
Anders will continue to hold the position until 1 May 2025, and the Board has initiated the process of finding his replacement.
Mr. Fjeld has been the CEO since November 2018. Under his leadership, the Company has developed significantly and become a leader in home textile retail in the Nordics.
There has been no other significant events after the end of the reporting period.
Lier, 11 November 2024 The Board of Kid ASA
Espen Gundersen Chair
Karin Bing Orgland Board member
Gyrid Skalleberg Ingerø Board member
Jon Brannsten Board member
Liv Berstad Board member
Anders Fjeld Chief Executive Officer
| (Amounts in NOK thousand) | Note | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | FY 2023 |
|---|---|---|---|---|---|---|
| Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| Revenue | 886,932 | 830,913 | 2,381,252 | 2,160,427 | 3,413,595 | |
| Other operating revenue | 1,304 | 1,007 | 3,480 | 2,578 | 4,270 | |
| Total revenue | 888,236 | 831,920 | 2,384,732 | 2,163,005 | 3,417,866 | |
| Purchased goods and change in inventory | -336,308 | -315,148 | -897,918 | -855,174 | -1,314,280 | |
| Employee benefits expense | -188,329 | -161,495 | -546,843 | -484,682 | -704,722 | |
| Depreciation and amortisation expenses | 9 | -118,195 | -101,774 | -351,328 | -298,425 | -404,136 |
| Other operating expenses | -127,195 | -113,923 | -377,557 | -358,563 | -514,371 | |
| Total operating expenses | -770,028 | -692,340 | -2,173,647 | -1,996,843 | -2,937,508 | |
| Operating profit | 118,208 | 139,580 | 211,085 | 166,162 | 480,357 | |
| Financial income | 2,931 | 3,667 | 9,357 | 7,077 | 10,844 | |
| Financial expense | -27,936 | -23,898 | -77,371 | -65,753 | -87,473 | |
| Net financial income (+) / expense (-) | -25,006 | -20,231 | -68,014 | -58,675 | -76,630 | |
| Share of result from joint ventures | -695 | -1,332 | -2,204 | -1,588 | -1,200 | |
| Profit before tax | 92,507 | 118,017 | 140,868 | 105,898 | 402,528 | |
| Income tax expense | -22,283 | -27,371 | -31,374 | -25,450 | -88,701 | |
| Net profit (loss) for the period | 70,224 | 90,647 | 109,493 | 80,448 | 313,827 | |
| Interim condensed consolidated statement of comprehensive income |
||||||
| Profit for the period | 70,224 | 90,647 | 109,493 | 80,448 | 313,827 | |
| Other comprehensive income | -7,374 | 3,387 | 42,100 | 116,507 | 62,695 | |
| Tax on comprehensive income | 5,244 | -2,628 | -6,395 | -24,082 | -8,335 | |
| Total comprehensive income for the period | 68,094 | 91,405 | 145,199 | 172,873 | 368,187 | |
| Attributable to equity holders of the parent | 68,094 | 91,405 | 145,199 | 172,873 | 368,187 | |
| Basic and diluted Earnings per share (EPS): | 1.73 | 2.23 | 2.69 | 1.98 | 7.72 |
| (Amounts thousand) in NOK |
Note | 30.09.2024 | 30.09.2023 | 31.12.2023 |
|---|---|---|---|---|
| Assets | Unaudited | Unaudited | Audited | |
| Goodwill | 9 | 72,115 | 67,581 | 70,169 |
| Trademark | 9 | 1,515,356 | 1,511,858 | 1,513,851 |
| Other intangible assets |
9 | 44,775 | 42,635 | 46,699 |
| Deferred tax asset |
6,111 | 0 | 6,593 | |
| Total intangible assets |
1,638,357 | 1,622,075 | 1,637,312 | |
| Right of use asset |
9 | 1,181,866 | 1,039,539 | 1,050,028 |
| and fittings, tools, office machinery and Fixtures |
||||
| equipment | 9 | 336,955 | 299,657 | 303,178 |
| Total tangible assets |
1,518,821 | 1,339,196 | 1,353,206 | |
| associated and Investments in companies joint ventures |
1 0 |
0 | 0 | 1,013 |
| to associated and Loans companies joint ventures |
8 | 71,074 | 37,591 | 50,702 |
| Total financial fixed assets |
71,074 | 37,591 | 51,716 | |
| Total fixed assets |
3,228,253 | 2,998,862 | 3,042,234 | |
| Inventories | 930,785 | 728,704 | 576,279 | |
| receivables Trade |
25,708 | 10,135 | 32,640 | |
| Other receivables |
31,038 | 27,013 | 43,031 | |
| Derivatives | 28,593 | 61,783 | 29,337 | |
| Totalt receivables |
85,339 | 98,931 | 105,009 | |
| Cash and bank deposits |
0 | 0 | 225,065 | |
| Total currents assets |
1,016,124 | 827,635 | 906,353 | |
| Total assets |
4,244,377 | 3,826,500 | 3,948,587 |
| (Amounts thousand) in NOK |
Note | 30.09.2024 | 30.09.2023 | 31.12.2023 |
|---|---|---|---|---|
| Equity and liabilities |
Unaudited | Unaudited | Audited | |
| Share | ||||
| capital | 48,770 | 48,770 | 48,770 | |
| Share premium |
321,050 | 321,050 | 321,050 | |
| Other paid-in-equity |
64,617 | 64,617 | 64,617 | |
| Total paid-in-equity |
434,440 | 434,440 | 434,440 | |
| Other equity |
890,570 | 812,384 | 880,840 | |
| Total equity |
1,325,007 | 1,246,824 | 1,315,280 | |
| Deferred tax |
316,803 | 322,902 | 312,218 | |
| Total provisions |
316,803 | 322,902 | 312,218 | |
| liabilities Lease |
876,683 | 767,079 | 779,287 | |
| Liabilities to financial institutions |
6 | 681,564 | 671,658 | 491,661 |
| Total long-term liabilities |
1,558,247 | 1,438,737 | 1,270,947 | |
| liabilities Lease |
351,765 | 302,320 | 305,640 | |
| Liabilities to financial institutions |
6 | 102,620 | 75,853 | 30,000 |
| Trade payable |
213,386 | 152,038 | 203,375 | |
| payable Tax |
4,618 | 0 | 55,813 | |
| Public duties payable |
152,811 | 129,098 | 209,941 | |
| Other short-term liabilities |
207,120 | 155,305 | 191,626 | |
| Derivatives | 12,000 | 3,424 | 53,748 | |
| Total short-term liabilities |
1,044,320 | 818,038 | 1,050,144 | |
| Total liabilities |
2,919,370 | 2,579,676 | 2,633,310 | |
| Total equity and liabilities |
4,244,377 | 3,826,500 | 3,948,587 |
| (Amounts in NOK thousand) | Total paid-in equity | Other equity | Total equity |
|---|---|---|---|
| Balance at 1 Jan 2023 | 434,440 | 838,940 | 1,273,380 |
| Profit for the period YTD 2023 | 0 | 80,448 | 80,448 |
| Other comprehensive income | 0 | 92,425 | 92,425 |
| Realized cash flow hedges | 0 | -77,494 | -77,494 |
| Dividend | 0 | -121,935 | -121,935 |
| Balance at 30 Sep 2023 | 434,440 | 812,384 | 1,246,824 |
| Balance at 1 Jan 2024 | 434,440 | 880,840 | 1,315,280 |
| Profit for the period YTD 2024 | 0 | 109,493 | 109,493 |
| Other comprehensive income | 0 | 35,708 | 35,708 |
| Realized cash flow hedges | 0 | 6,784 | 6,784 |
| Dividend | 0 | -142,258 | -142,258 |
| Balance at 30 Sep 2024 | 434,440 | 890,570 | 1,325,007 |
| (Amounts in NOK thousand) | Note | Q3 2024 | Q3 2023 | Q1-Q3 2024 | Q1-Q3 2023 | FY 2023 |
|---|---|---|---|---|---|---|
| Unaudited Unaudited | Unaudited | Unaudited | Audited | |||
| Cash Flow from operation | ||||||
| Profit before income taxes | 92,508 | 118,018 | 140,867 | 105,898 | 402,528 | |
| Taxes paid in the period | -9,017 | -8,513 | -55,460 | -65,839 | -91,037 | |
| Depreciation & Impairment | 9 | 118,195 | 101,774 | 351,328 | 298,425 | 404,136 |
| Effect of exchange fluctuations | -951 | 747 | 675 | 6,012 | 10,192 | |
| Change in net working capital | ||||||
| Change in inventory | -160,041 | -66,405 | -346,002 | -51,119 | 111,538 | |
| Change in trade debtors | 1,800 | 22,585 | 6,984 | 2,290 | -20,231 | |
| Change in trade creditors | 26,143 | 43,517 | 6,089 | 29,557 | 76,510 | |
| Change in other provisions ¹ | 41,754 | 4,954 | -9,962 | -49,193 | 67,808 | |
| Net cash flow from operations | 110,391 | 216,676 | 94,519 | 276,030 | 961,444 | |
| Cash flow from investment | ||||||
| Purchase of fixed assets | 9 | -28,857 | -25,828 | -120,307 | -141,478 | -163,697 |
| Loans to associated companies and joint ventures | 8, 10 | 0 | 0 | 0 | -12,785 | -17,785 |
| Net Cash flow from investments | -28,857 | -25,828 | -120,307 | -154,263 | -181,481 | |
| Cash flow from financing | ||||||
| Proceeds from long term loans | 0 | 0 | 0 | 0 | 0 | |
| Proceeds from short term loans | 0 | 0 | 200,000 | 160,000 | 160,000 | |
| Repayment of revolving credit facility | 0 | 0 | 0 | 0 | -160,000 | |
| Repayment of Term Loans | 0 | 0 | -10,000 | -10,000 | -30,000 | |
| Overdraft facility | 28,143 | -95,208 | 72,620 | 45,853 | 0 | |
| Lease payments for principal portion of lease liability | -84,485 | -75,378 | -253,679 | -223,268 | -296,250 | |
| Dividend payment | 0 | 0 | -142,258 | -121,935 | -233,710 | |
| Net interest | -24,911 | -18,789 | -69,836 | -59,830 | -79,743 | |
| Net cash flow from financing | -81,253 | -189,375 | -203,153 | -209,181 | -639,703 | |
| Cash and cash equivalents at the beginning of the period | 0 | 0 | 225,066 | 75,722 | 75,722 | |
| Net change in cash and cash equivalents | 282 | 1,472 | -228,941 | -87,414 | 140,260 | |
| Exchange gains / (losses) on cash and cash equivalents | -282 | -1,472 | 3,874 | 11,693 | 9,084 | |
| Cash and cash equivalents at the end of the period | 0 | 0 | 0 | 0 | 225,067 |
Kid ASA and its subsidiaries` (together the "Company" or the "Group") operating activities are related to resale of home and interior products in Norway, Sweden, Finland and Estonia. The Kid Group offers a full range of products comprising textiles, curtains, bed linens, furniture, accessories and other interior products. We design,source, market and sell these productsthrough ourstores as well as through our online sales platforms.
All amountsin the interim financial statements are presented in NOK 1,000 unless otherwise stated. Due to rounding, there may be differences in the summation columns.
These interim financialstatementsfor the third quarter of 2024 have been prepared in accordance with IAS 34, 'Interim financial reporting'. The interim financial statements should be read in conjunction with the consolidated financialstatements for the year ended 31 December 2023, which have been prepared in accordance with IFRS as adopted by the European Union ('IFRS').
The accounting policies applied in the preparation of the consolidated interim financial statements are consistent with those applied in the preparation of the annual IFRS financial statementsfor the year ended 31 December 2023. New standards or amendments effective at 1 January 2024 do not have a material impact on the Group.
The Preparation of interim financial statementsrequires managementto make judgments, estimates and assumptionsthat affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
In preparing these interim financialstatementsthe significant judgements made by managementin applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statementsfor the year ended 31 December 2023.
Kid Group reports segmentsin accordance with how the chief operating decision maker makes, follows up and evaluatesits decisions. Within the Group, Kid Interior relatesto Norway and Hemtex relatesto Sweden with a few storesin Estonia and Finland. The Group also sells home textilesthrough the Group's online websites. Over 98% of the products are sold under own brands.
Q3 2024
| (Amounts in NOK thousand) | Kid Interior | Hemtex | Total |
|---|---|---|---|
| Revenue | 562,911 | 324,021 | 886,932 |
| COGS | -216,398 | -119,910 | -336,308 |
| Gross profit | 346,513 | 204,110 | 550,624 |
| Other operating revenue | 152 | 1,152 | 1,304 |
| Operating expense (OPEX) | -186,728 | -128,796 | -315,525 |
| EBITDA | 159,937 | 76,466 | 236,403 |
| Operating profit | 95,580 | 22,628 | 118,208 |
| Gross margin (%) | 61.6 % | 63.0 % | 0.6 |
| OPEX to sales margin (%) | 33.2 % | 39.7 % | 0.4 |
| EBITDA margin (%) | 28.4 % | 23.5 % | 0.3 |
| Inventory | 585,972 | 344,813 | 930,785 |
| Total assets | 2,922,790 | 1,321,586 | 4,244,377 |
Financing agreements
At the balance sheet date, the Group has the following facilities:
| Utilised | |||||
|---|---|---|---|---|---|
| (Amounts in NOK thousand) | 30.09.2024 | Facility Interest | Maturity | Repayment | |
| Total term loan | 511,700 | 511,700 | 15.05.2026 | Instalments¹ | |
| Of which secured with fixed interest rate: | |||||
| Denominated in NOK | 395,000 | 395,000 Fixed rate at 1,876% + 1.25% ² | |||
| Denominated in SEK | 15,000 | 15,000 Fixed rate at 1,460% + 1.25% ³ | |||
| New term loan | - | 125,000 3 months NIBOR + 1.69% | 01.05.2027 | Instalments⁴ | |
| Revolving credit facility | 200,000 | 230,000 3 months NIBOR + 1.31% | 27.04.2026 | At maturity | |
| Overdraft | 72,620 | 247,000 1 week IBOR + 1.10% | 12 months | At maturity | |
| 784,320 | 1,113,700 |
¹MNOK 30 in annual instalments with bi-annual payments
²Fixed interest rate is secured through an interest rate swap of MNOK 395 maturing August 2029 and subject to hedge accounting
³Fixed interest rate and denomination in SEK is hedged through a cross-currency interest swap of MNOK 15 maturing November 2024
4MNOK 25 in annual instalments with bi-annual payments
The effect of the change in fair value of the cross-currency interest swap is booked against foreign exchange gains/losses in Statement of profit and loss
| Q3 2024 | Q3 2023 Q1-Q3 2024 Q1-Q3 2023 | FY 2023 | |||
|---|---|---|---|---|---|
| Weighted number of ordinary shares |
40,645,162 40,645,162 40,645,162 40,645,162 40,645,162 | ||||
| Net profit for or loss the year |
70,224 | 90,647 | 109,493 | 80,448 | 313,827 |
| (basic diluted) (Expressed in NOK per share) Earnings per share and |
1.73 | 2.23 | 2.69 | 1.98 | 7.72 |
The Group's related parties include its associates, joint ventures, key management and members of the Board. None of the Board members have been granted loans or guarantees in the current quarter. Furthermore, none of the Board members are included in the Group's pension or bonus plans.
The following table provides the period-end balance that have been entered into with joint ventures and related parties by the end of first half of 2024 and 2023:
| Related and Joint Party Ventures |
Q1-Q3 2024 |
Q1-Q3 2023 |
|---|---|---|
| Holding (Loan) Prognosgatan AS |
71,074 | 37,591 |
| Total | 71,074 | 37,591 |
Additions on Right of use Assets during the quarter relates to new and renegotiated rental agreements for stores as well as index adjustments. Additions on PPE mainly relates to store openings and refurbishments.
| Right of use | Other | ||||
|---|---|---|---|---|---|
| (amounts in NOK thousand) | Asset | PPE | Trademark | Intangibles | Goodwill |
| Balance 01.01.2024 | 1,050,028 | 303,178 | 1,513,851 | 46,699 | 70,169 |
| Exchange differences | 11,971 | 8,996 | 1,505 | 87 | 1,946 |
| Additions, disposals and adjustments | 385,898 | 96,232 | 11,837 | ||
| Depreciation and amortisation | -266,031 | -71,451 | -13,847 | ||
| Balance 30.09.2024 | 1,181,866 | 336,955 | 1,515,356 | 44,775 | 72,115 |
| Right of use | Other | ||||
|---|---|---|---|---|---|
| (amounts in NOK thousand) | Asset | PPE | Trademark | Intangibles | Goodwill |
| Balance 01.01.2023 | 760,734 | 237,245 | 1,510,224 | 35,327 | 65,479 |
| Exchange differences | 11,150 | 6,003 | 1,634 | -573 | 2,102 |
| Additions, disposals and adjustments | 500,169 | 117,065 | 13,137 | ||
| Depreciation and amortisation | -232,514 | -60,655 | -5,255 | ||
| Balance 30.09.2023 | 1,039,539 | 299,657 | 1,511,858 | 42,636 | 67,581 |
The Group had the following subsidiaries as of 30 September 2024:
| Proportion of shares directly held by |
|||
|---|---|---|---|
| Name | Place of business |
of business Nature |
parent (%) |
| Kid Interiør AS |
Norway | Interior goods retailer |
100 |
| Kid Logistikk AS |
Norway | Logistics | 100 |
| Kid Eiendom AS |
Norway | Logistics | 100 |
| Hemtex AB |
Sweden | goods retailer Interior |
100 |
| Hemtex OY |
Finland | goods retailer Interior |
100 |
| Kid Sourcing AS |
Norway | Wholesaler* | 100 |
| International Kid Logistic AB |
Sweden | Logistics | 100 |
All subsidiary undertakings are included in the consolidation.
*Currently a non-operating company. Operations will start during 2025
The Group had the following joint ventures as of 30 September 2024:
| Name | Place of business |
of relationship Nature |
Measurement method |
Ownership share |
Carrying amount |
|---|---|---|---|---|---|
| Holding Prognosgatan AS |
Norway | Joint venture |
method Equity |
% 50 |
- |
The joint venture is reflected in the statement of profit and loss and the statement of financial position. The share of result from the joint venture for Q3-24 was MNOK -0.7 (MNOK -1.3). Per the reporting date, the carrying amount of the investment is MNOK 0.0 and MNOK -1.2 (MNOK 1.0) has been classified as other short-term liabilities.
A sales process of the warehouse property in Sweden through a sale of Prognosgatan Fastighets AB, a subsidiary of the joint venture, has been initiated.
Constant currency is the exchange rate that the Group uses to eliminate the effect of exchange rates fluctuations when calculating financial performance numbers.
EBIT (earnings before interest and tax) is operating profit. The performance measure is considered useful to the users of the financial statements when evaluating operational profitability.
EBIT margin is EBIT divided by total revenues. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational efficiency.
EBITDA is earnings before tax, interests, amortisation of other intangibles and depreciation and write-down of property, plant and equipment and right-of-use assets. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational profitability on a more variable cost basis as it excludes amortisation and depreciation expense related to capital expenditure.
EBITDA margin is EBITDA divided by total revenues. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational efficiency on a more variable cost basis as it excludes amortisation and depreciation expenses.
Gearing ratio is defined as net interestbearing debt divided by LTM EBITDA excluding IFRS 16 effects.
Gross margin is defined as gross profit divided by revenues. The gross margin reflects the percentage margin of the sales revenues that the Group retain after incurring the direct costs associated with the purchase and distribution of the goods and is an important internal KPI.
Gross profit is defined as revenues minus the cost of goods sold (COGS). The gross profit represents sales revenues that the Group retain after incurring the direct costs associated with the purchase and distribution of the goods.
Like-for-like revenues are revenues from physical stores and online stores that were in operation from the start of last fiscal year all through the end of the current reporting period. Like-for-like (LFL) is calculated in constant currency.
Net capital expenditure represent the cash flow from the investment spending in property, plant and equipment and other intangibles, less sale such asset.
Net income is profit (loss) for the period.
OPEX-to-sales ratio is the sum of employee benefits expense and other operating expenses divided by revenues. The OPEX to sales ratio measures operating cost efficiency as percentage of sales revenues and is an important internal KPI.
Revenue growth represents the growth in revenues for the current reporting period compared to the same period the previous year. Revenue growth for Hemtex is calculated in constant currency. Revenue growth is an important key figure for the Group and users of financial statements as it illustrates the underlying organic revenue growth.
EBIT (earnings before interest and tax) is operating profit. The performance measure is considered useful to the users of the financial statements when evaluating operational profitability.
EBITDA is earnings before tax, interests, amortisation of other intangibles and depreciation and write -down of property, plant and equipment and right -of -use assets. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational profitability on a more variable cost basis as it excludes amortisation and depreciation expense related to capital expenditure.
EBITDA margin is EBITDA divided by total revenues. The performance measure is an important key figure for Kid Group and considered useful to the users of the financial statements when evaluating operational efficiency on a more variable cost basis as is excludes amortisation and depreciation expense related to capital expenditure.
Gross profit is defined as revenues minus the cost of goods sold (COGS). The gross profit represents sales
revenues that the Group retain after incurring the direct costs associated with the purchase and distribution of the goods.
Gross margin is defined as gross profit divided by revenues. The gross margin reflects the percentage margin of the sales revenues that the Group retain after incurring the direct costs associated with the purchase and distribution of the goods and is an important internal KPI.
OPEX -to -sales ratio is the sum of employee benefits expense and other operating expenses divided by revenues. The OPEX to sales ratio measures operating cost efficiency as percentage of sales revenues and is an important internal KPI.
Thisreport includes forward -looking statements which are based on our current expectations and projections about future events. Allstatements other than statements of historical facts included in this report, including statementsregarding our future financial position, risks and uncertaintiesrelated to our business, strategy, capital expenditures, projected costs and our plans and objectivesfor future operations, including our plans for future costs savings and synergies may be deemed to be forward -looking statements. Words such as "believe," "expect," "anticipate,", "may," "assume," "plan," "intend," "will," "should," "estimate," "risk" and similar expressions or the negatives of these expressions are intended to identify forward -looking statements.
Kid ASA, Gilhusveien 1, 3426 Gullaug Customer service: +47 31 00 20 00 www.kid.no
By their nature, forward -looking statementsinvolve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance. You should not place undue reliance on these forward looking statements. In addition, any forward -looking statements are made only as of the date of this notice, and we do not intend and do not assume any obligation to update any statementsset forth in this notice.
