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Kid ASA
Earnings Release • Aug 22, 2024
3642_rns_2024-08-22_f9207c64-4e5d-4b01-a61b-5ec7d8fde042.pdf
Earnings Release
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GROUP REVENUES increased by 10.2% (-0.8%) to MNOK 797.8. GROSS MARGIN increased by 1.0 percentage points to 63.2% (62.2%). OPEX increased by 6.9% (+4.6%).
EBITDA increased by MNOK 34.9 to MNOK 201.5 (MNOK 166.6).
CASH FLOW from operations of MNOK 111.2 impacted by planned inventory build-up.
Group revenues
We are satisfied to present the fourth consecutive quarter with double-digit growth. The growth is attributed to continuously category and omnichannel development, as well as store project initiatives. These projects involve refurbishment, relocation and/or expansion of existing stores in our portfolio. In Q2, we reached all-time high revenues of MNOK 797.8, with online sales accounting for MNOK 96.2, representing an online share of 12.1%. Categories introduced since 2022 accounted for MNOK 22.5 (MNOK 12.1) in revenues, and significantly enhanced sales of existing assortment and customer traffic.
Category development
As part of our strategic focus, category development encompasses both enhancing existing categories and introducing entirely new ones. The Extended concept was launched online and in selected larger stores (+600 sqm.) in Hemtex during the first quarter. We are satisfied with the results from the launch and this initiative will be one of the important growth drivers going forward. The rollout will continue throughout the year according to plan.
Made-to-measure technical sun screening was launched in Hemtex, both in physical stores and online, in April. The ordering module enables Swedish, Finnish and Estonian customers to order blinds, shutters and curtains tailored to their specific measurements.
The bathroom category initiative is supported by new bathroom display furnishings, which are being rolled out in conjunction with store upgrades. New products and product groups have been added such as bathroom accessories, hair accessories, beauty bags, soaps and creams, which comes on top of the historical assortment.
Gross margin development
Most of the goods found in the Kid Interior/Hemtex stores are produced in Asia and transported to Europe by ship. The purchase price is usually settled in US dollars. The strong dollar versus both NOK and SEK, as well as higher freight cost due to the unrest in the Red Sea/Gulf of Aden, are consequently negative for Kid. Early price adjustments have however so far compensated for this cost increase, resulting in strong reported gross margin for the quarter. We are constantly monitoring the situation and are prepared to take further action, if necessary.
Warehouse project in Sweden
The warehouse project in Sweden is progressing according to plan. Agreements with providers of automation solutions and warehouse management system ("WMS") have been negotiated and signed. We still estimate that operations in the common warehouse for the Group will commence medio 2025.
Store portfolio development
In the second quarter, we continue the store project activity fueling growth. We have completed six store projects in Kid Interior and Hemtex. Additionally, we have opened four new stores, where two of these stores are located in Norway, and two are in Sweden. By the end of the quarter, we have in total signed contracts for ten new stores in Norway including seven Extended stores, one new store in Sweden and one in Finland. These stores are estimated to open during 2024 and 2025.
New markets
The general acceptance for the Kid concept is positive in the Nordics. Preliminary market studies support that our concept and products have a potential outside the current markets. On the back of this, we have decided to pilot and test markets beyond the Nordic region and the Baltics under the Hemtex brand. We have great respect for the challenges of establishing ourselves in new and foreign markets. Accordingly, a German-language website will be launched with local marketing investments for the market in Germany. Additionally, an English-language site targeting other European countries will be launched with no specific marketing investments. In the next 12 months, total expected costs amount to less than MNOK 10.0, of which approximately 50% will be capitalized. The launch of the low-risk ecommerce pilot is scheduled to take place during H2-25.
Kid Interior Hemtex
| (Amounts in NOK million) |
Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 |
|---|---|---|---|---|---|
| Revenue | 797.8 | 724.1 | 1,494.3 | 1,329.5 | 3,413.6 |
| ¹ Like-for-like growth including online sales |
9.2 % | -3.3 % | 11.3 % | -1.9 % | 5.5 % |
| COGS | -293.4 | -273.8 | -561.6 | -540.0 | -1,314.3 |
| Gross profit | 504.5 | 450.3 | 932.7 | 789.5 | 2,099.3 |
| Gross margin (%) |
63.2% | 62.2% | 62.4% | 59.4% | 61.5% |
| Other operating income |
1.3 | 1.0 | 2.2 | 1.6 | 4.3 |
| Employee benefits expense |
-179.6 | -162.3 | -358.5 | -323.2 | -704.7 |
| Other operating expense |
-225.1 | -207.4 | -446.4 | -413.0 | -854.0 |
| Other operating expense - IFRS 16 effect |
100.4 | 85.1 | 196.0 | 168.3 | 339.6 |
| OPEX | -304.3 | -284.6 | -608.9 | -567.8 | -1,219.1 |
| EBITDA | 201.5 | 166.6 | 326.0 | 223.2 | 884.5 |
| (%) EBITDA margin |
25.2% | 23.0% | 10.2% | 16.8% | 25.9% |
| Depreciation | -29.5 | -21.8 | -57.6 | -42.1 | -92.6 |
| Depreciation - IFRS 16 effect | -88.7 | -79.1 | -175.5 | -154.5 | -311.6 |
| EBIT | 83.3 | 65.8 | 92.9 | 26.6 | 480.4 |
| (%) EBIT margin |
10.4% | 9.1% | 2.9% | 2.0% | 14.1% |
| Net financial income (expense) |
-10.1 | -9.3 | -16.2 | -18.0 | -33.3 |
| Net financial expense - IFRS 16 effect |
-13.1 | -11.2 | -26.8 | -20.4 | -43.3 |
| Share of result from joint ventures |
-0.9 | 0.1 | -1.5 | -0.3 | -1.2 |
| Profit before tax |
59.3 | 45.3 | 46.5 | -12.1 | 402.5 |
| Net income | 48.4 | 36.4 | 39.3 | -10.2 | 313.8 |
| Earnings per share |
1.19 | 0.90 | 0.97 | -0.25 | 7.72 |
| Liabilities to financial institutions |
-756.0 | -842.7 | -756.0 | -842.7 | -521.7 |
| Lease liabilities - IFRS 16 effect |
-1,236.7 | -1,069.8 | -1,236.7 | -1,069.8 | -1,084.9 |
| Cash | 0.0 | 0.0 | 0.0 | 0.0 | 225.1 |
| Net interest bearing debt |
-1,992.7 | -1,912.5 | -1,992.7 | -1,912.5 | -1,381.5 |
¹Calculated in constant currency
Second quarter continues the good start of 2024 with an EBITDA increase of MNOK 34.9. Revenue growth driven by number of customers and basket size. These drivers resulted in a quarter with strong like -for -like growth of 9.2%, measured on a constant currency basis. Gross margin improved. Operating expenses (OPEX) excl. IFRS 16 as percentage of revenues, decreased 0.4 percentage points compared to Q2 -23.
Group revenues
Total Group revenues increased by 10.2% ( -0.8%), with consistent growth in every month of the quarter. In constant currency, revenues increased by 10.6% (-2.5%). Net new stores contributed positively. Across major categories, we are witnessing positive growth, particularly in bedlinen, duvets, pillows, and curtains.
The like -for -like revenue growth increase was 9.2% ( -3.3%) in the quarter. Both Kid Interior and Hemtex experienced positive revenue development in the physical stores. Online revenues increased by 9.8% (+9.3%) in the quarter and represented 12.1% (12.1%) of total revenues. Categories launched since 2022 accounted for MNOK 22.5 (MNOK 12.1) in revenues .
Gross margin
Kid Interior and Hemtex delivered increased gross margins compared to Q2 -23. The increase is driven by early price adjustments to address higher freight rates and currency hedge levels going forward.
Kid Interior Hemtex
Employee expenses increased by MNOK 17.3 to MNOK 179.6:
- MNOK 7.7 in LFL stores mainly due to general salary increase and increased working hours
- MNOK 2.9 increase from net new stores
- MNOK 0.7 due to higher accrued bonus than last year
- MNOK 1.3 in HQ costs due to general salary increase
- MNOK 5.4 in Logistics mainly due to the new central warehouse in Sweden presented as other operating expenses last year, in addition to increased logistics activity in Norway
- MNOK -0.7 due to changes in SEKNOK exchange rate
Other operating expenses increased by MNOK 2.4 to MNOK 124.7:
- MNOK 14.3 in LFL stores, mainly related to index adjustment of rental costs, store expansions and increased shared operating costs, as well as last mile transportation costs related to furniture
- MNOK 4.7 increase in net new stores
- MNOK 4.8 from increased marketing cost
- MNOK -3.7 in HQ costs related to IT, as well as less use of external consultants and one-off costs related to the move of the offices in Sweden last year
- MNOK -1.3 in Logistics operating costs mainly due to personnel costs in Sweden
presented as employee expenses this year
- MNOK -15.8 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 -0.6 due to changes in SEKNOK exchange rate
EBITDA increased by MNOK 34.9 to MNOK 201.5 mainly due to increased revenues and improved gross margin.
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 23.1 (MNOK 20.5) relates to net interest expenses of MNOK 8.9 (MNOK 7.0), net other financial expenses of MNOK 0.7 (MNOK 1.0), net FX expenses of MNOK 0.4 (MNOK 1.3) and IFRS 16 interest expenses of MNOK 13.1 (MNOK 11.2).
Liquidity and borrowings
During Q2, Kid ASA paid MNOK 142.3 (MNOK 121.9) in dividend. Furthermore, MNOK 200 (MNOK 160) of the revolving credit facility was utilised.
Excluding IFRS 16 effects, net interest-
bearing debt was MNOK 756.0 (MNOK 842.7) at the end of the quarter, corresponding to a gearing ratio of 1.22x (2.40x) of LTM EBITDA. The Group had cash and available credit facilities of MNOK 357.5 (MNOK 175.9) as of 30 June 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. The inventory was 14.1% above end of the quarter last year, which is mainly explained by the introduction of furniture and other category development initiatives, combined with earlier shipments due to the global freight situation. Investments reflect mainly CAPEX relating to store openings and projects. Cash flow from financing represents lease payments, net interests, use of overdraft facility and payment of dividend.
Capital expenditures (CAPEX) amounted to MNOK 40.0 (MNOK 55.9) during Q2, mainly relating to store openings and refurbishments. Investments related to the warehouse project in Sweden accounted for MNOK 2.6 (MNOK 23.6) in the quarter.
Personell Other Opex
KID Interior
| (Amounts in NOK millions) |
Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 |
|---|---|---|---|---|---|
| Revenue | 500.4 | 450.7 | 938.1 | 836.6 | 2,122.9 |
| Revenue growth | 11.0 % | -1.1% | 12.1 % | 1.7 % | 7.0 % |
| LFL growth including online sales | 9.5 % | -2.0% | 11.1 % | 0.5 % | 6.1 % |
| COGS | -183.8 | -166.4 | -352.1 | -338.6 | -796.2 |
| Gross profit | 316.6 | 284.3 | 586.0 | 498.0 | 1,326.7 |
| Gross margin (%) | 63.3 % | 63.1 % | 62.5 % | 59.5 % | 62.5 % |
| Other operating revenue | 0.3 | 0.1 | 0.3 | 0.1 | 0.1 |
| Employee benefits expense |
-107.0 | -96.6 | -218.7 | -197.6 | -436.5 |
| Other operating expense | -118.3 | -112.4 | -236.6 | -220.6 | -463.9 |
| Other operating expense - IFRS 16 effect | 54.4 | 45.9 | 106.6 | 93.3 | 189.2 |
| EBITDA | 146.0 | 121.2 | 237.6 | 173.2 | 615.5 |
| EBITDA margin (%) | 29.2 % | 26.9 % | 25.3 % | 20.7 % | 29.0 % |
| No. of shopping days No. of physical stores at period end |
7 3 158 |
7 1 156 |
148 158 |
148 156 |
306 157 |
| Hemtex | |||||
| (Amounts in NOK millions) |
Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 |
| Revenue | 297.4 | 273.4 | 556.2 | 492.9 | 1,290.7 |
| Revenue growth ¹ | 9.9 % | -4.8% | 11.9 % | -7.7% | 3.2 % |
| LFL growth including online sales ¹ | 8.7 % | -5.4% | 11.6 % | -5.9% | 4.4 % |
| COGS | -109.6 | -107.4 | -209.5 | -201.5 | -518.0 |
| Gross profit | 187.8 | 166.0 | 346.7 | 291.5 | 772.6 |
| Gross margin (%) | 63.2 % | 60.7 % | 62.3 % | 59.1 % | 59.9 % |
| Other operating revenue | 1.0 | 0.9 | 1.8 | 1.5 | 4.2 |
| Employee benefits expense |
-72.6 | -65.7 | -139.8 | -125.6 | -268.2 |
| Other operating expense | -106.8 | -95.0 | -209.8 | -192.4 | -390.0 |
| Other operating expense - IFRS 16 effect | 46.0 | 39.3 | 89.4 | 75.1 | 150.4 |
| EBITDA | 55.5 | 45.4 | 88.4 | 50.0 | 269.0 |
| EBITDA margin (%) | 18.6 % | 16.6 % | 15.8 % | 10.1 % | 20.8 % |
| No. of shopping days No. of physical stores at period end (excl. franchise) |
9 0 117 |
9 0 117 |
180 117 |
179 117 |
362 119 |
*Fully-owned stores. Hemtex has an additional 11 franchise stores
Revenues increased compared to last year, mainly due to basket size and increased number of customers in both physical stores and online. The number of shopping days increased by two days to 73 (71) in total for the quarter.
Online revenues increased by +15.4% (+15.6%) to MNOK 55.4 (MNOK 48.0).
Gross margin increased by 0.2 percentage points to 63.3%. The increase is driven by early price adjustments to meet higher freight rates and currency hedging levels going forward.
Employee expenses increased by MNOK 10 . 4 :
- MNOK 4.7 in LFL stores mainly due to general salary increase and increased store project activity
- MNOK 1.4 due to net new stores
- MNOK 0.4 due to bonus expenses
- MNOK 1.6 in HQ costs mainly due to general salary increase
- MNOK 2.3 in Logistics due to increased sales activity
Other operating expenses decreased by MNOK -2.7 :
- MNOK 8.3 in LFL stores mainly related to index adjustment of rental costs, store expansions and increased shared operating costs, as well as last mile transportation costs related to furniture
- MNOK 2.0 in net new stores
- MNOK -1.0 from decreased marketing cost
- MNOK -3.4 in HQ, mainly related to IT costs, less use of external consultants and timing effect of operating materials
- MNOK 0.0 in Logistics
- MNOK -8.6 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 increased, mainly due to basket size, partly offset by reduced number of customers in physical stores and online. The number of shopping days was the same as last year 90 (90).
The Extended concept was launched in Hemtex during the first quarter and made-to-measure technical sun screening was launched in Hemtex in April. Both category development initiatives contributed positively to revenues.
Online revenues increased by +3.1% (+2.5%) to MNOK 40.8 (MNOK 39.9) based on a constant currency calculation.
Hemtex 24h revenues decreased by MNOK 3.9 compared to Q2-23. Reference is made to the termination of the agreement with ICA Gruppen elaborated in the Q1-23 report, which also will impact revenues this year.
Gross margin increased by 2.5 percentage points to 63.2%. The increase is driven by early price adjustments to meet higher freight rates and currency hedging levels going forward.
Employee expenses increased by MNOK 6.9:
- MNOK 2.9 in LFL stores mainly due to increase in working hours as well as general salary increase
- MNOK 1.6 due to net new stores
- MNOK 0.3 due to higher accrued bonus than last year
- MNOK -0.3 in HQ due to a reduced number of employees partly offset by services provided by HQ in Norway
- MNOK 3.1 in Logistics due to new employees following the inhouse logistic operations in Sweden
- MNOK -0.7 due to changes in SEKNOK exchange rate
Other operating expenses increased by MNOK 5.0:
- MNOK 5.9 in LFL stores, mainly related to index adjustment of rental costs and store expansions
- MNOK 2.7 in net new stores
- MNOK 5.7 from increase of marketing cost due to change in the campaign activity plan
- MNOK -0.3 in HQ mainly due to decreased IT cost, partly offset by services provided by HQ in Norway and one-off costs related to the move of offices last year in Sweden
- MNOK -1.3 in Logistics operating costs mainly due to personnel costs presented as employee expenses
- following the inhouse operations. This effect is partly offset by rental costs related to the warehouse and other activity-based costs
- MNOK -7.1 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 -0.6 due to changes in SEKNOK exchange rate
There has been no significant events after the end of the reporting period.
Lier, 21 August 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 | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 |
|---|---|---|---|---|---|---|
| Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| Revenue | 797,835 | 724,111 | 1,494,320 | 1,329,513 | 3,413,595 | |
| Other operating revenue | 1,333 | 952 | 2,176 | 1,572 | 4,270 | |
| Total revenue | 799,168 | 725,062 | 1,496,497 | 1,331,085 | 3,417,866 | |
| Cost of goods sold | -293,371 | -273,828 | -561,609 | -540,026 | -1,314,280 | |
| Employee benefits expense | -179,554 | -162,331 | -358,514 | -323,187 | -704,722 | |
| Depreciation and amortisation expenses | 9 | -118,160 | -100,833 | -233,134 | -196,651 | -404,136 |
| Other operating expenses | -124,739 | -122,311 | -250,362 | -244,640 | -514,371 | |
| Total operating expenses | -715,824 | -659,303 | -1,403,619 | -1,304,503 | -2,937,508 | |
| Operating profit | 83,344 | 65,759 | 92,877 | 26,582 | 480,357 | |
| Financial income | 1,535 | 724 | 6,427 | 3,410 | 10,844 | |
| Financial expense | -24,653 | -21,266 | -49,435 | -41,855 | -87,473 | |
| Net financial income (+) / expense (-) |
-23,118 | -20,542 | -43,008 | -38,444 | -76,630 | |
| Share of result from joint ventures | 10 | -919 | 102 | -1,509 | -256 | -1,200 |
| Profit before tax | 59,307 | 45,320 | 48,360 | -12,119 | 402,528 | |
| Income tax expense | -10,891 | -8,874 | -9,091 | 1,921 | -88,701 | |
| Net profit (loss) for the period | 48,415 | 36,446 | 39,269 | -10,198 | 313,827 | |
| Interim condensed consolidated statement of comprehensive income |
* | |||||
| Profit for the period | 48,415 | 36,446 | 39,269 | -10,198 | 313,827 | |
| Other comprehensive income | -16,778 | 40,195 | 49,475 | 113,120 | 62,695 | |
| Tax on comprehensive income | 2,205 | -10,952 | -11,639 | -21,453 | -8,335 | |
| Total comprehensive income for the period | 33,842 | 65,689 | 77,104 | 81,468 | 368,187 | |
| Attributable to equity holders of the parent | 33,842 | 65,689 | 77,104 | 81,468 | 368,187 | |
| Basic and diluted Earnings per share (EPS): | 1.19 | 0.90 | 0.97 | -0.25 | 7.72 |
| (Amounts thousand) in NOK |
Note | 30.06.2024 | 30.06.2023 | 31.12.2023 |
|---|---|---|---|---|
| Assets | Unaudited | Unaudited | Audited | |
| Goodwill | 9 | 69,497 | 68,662 | 70,169 |
| Trademark | 9 | 1,513,331 | 1,512,694 | 1,513,851 |
| Other intangible assets |
9 | 45,226 | 34,504 | 46,699 |
| Deferred tax asset |
9,232 | 0 | 6,593 | |
| Total intangible assets |
1,637,286 | 1,615,859 | 1,637,312 | |
| Right of use asset |
9 | 1,199,167 | 1,042,467 | 1,050,028 |
| Fixtures and fittings, tools, office machinery and |
||||
| equipment | 9 | 328,862 | 308,316 | 303,178 |
| Total tangible assets |
1,528,029 | 1,350,783 | 1,353,206 | |
| associated and Investments in companies joint ventures |
1 0 |
0 | 0 | 1,013 |
| to associated and Loans companies joint ventures |
8 | 69,990 | 37,024 | 50,702 |
| Total financial fixed assets |
69,990 | 37,024 | 51,716 | |
| Total fixed assets |
3,235,304 | 3,003,666 | 3,042,234 | |
| Inventories | 759,889 | 666,049 | 576,279 | |
| Trade receivables |
27,274 | 32,841 | 32,640 | |
| Other receivables |
41,421 | 50,141 | 43,031 | |
| Derivatives | 42,438 | 79,614 | 29,337 | |
| Totalt receivables |
111,133 | 162,597 | 105,009 | |
| Cash bank and deposits |
0 | 0 | 225,065 | |
| Total currents assets |
871,021 | 828,646 | 906,353 | |
| Total assets |
4,106,325 | 3,832,315 | 3,948,587 |
| (Amounts in NOK thousand) |
Note | 30.06.2024 | 30.06.2023 | 31.12.2023 |
|---|---|---|---|---|
| liabilities Equity and |
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 |
818,593 | 747,136 | 880,840 | |
| Total equity |
1,253,030 | 1,181,576 | 1,315,280 | |
| Deferred tax |
319,576 | 316,306 | 312,218 | |
| Total provisions |
319,576 | 316,306 | 312,218 | |
| liabilities Lease |
893,652 | 768,113 | 779,287 | |
| Liabilities to financial institutions |
6 | 681,541 | 511,654 | 491,661 |
| Total long-term liabilities |
1,575,193 | 1,279,768 | 1,270,947 | |
| Lease liabilities |
343,063 | 301,678 | 305,640 | |
| Liabilities to financial institutions |
6 | 74,477 | 331,061 | 30,000 |
| Trade payable |
182,136 | 110,930 | 203,375 | |
| payable Tax |
0 | 0 | 55,813 | |
| Public duties payable |
127,356 | 100,844 | 209,941 | |
| Other short-term liabilities |
220,351 | 208,745 | 191,626 | |
| Derivatives | 11,143 | 1,408 | 53,748 | |
| Total short-term liabilities |
958,527 | 1,054,666 | 1,050,144 | |
| Total liabilities |
2,853,296 | 2,650,740 | 2,633,310 | |
| Total and liabilities equity |
4,106,325 | 3,832,315 | 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 | -10,198 | -10,198 |
| Other comprehensive income | 0 | 91,667 | 91,667 |
| Realized cash flow hedges | 0 | -51,338 | -51,338 |
| Dividend | 0 | -121,935 | -121,935 |
| Balance at 30 Jun 2023 | 434,440 | 747,136 | 1,181,576 |
| Balance at 1 Jan 2024 | 434,440 | 880,840 | 1,315,280 |
| Profit for the period YTD 2024 | 0 | 39,268 | 39,268 |
| Other comprehensive income | 0 | 37,837 | 37,837 |
| Realized cash flow hedges | 0 | 2,902 | 2,902 |
| Dividend | 0 | -142,258 | -142,258 |
| Balance at 30 Jun 2024 | 434,440 | 818,593 | 1,253,030 |
| (Amounts in NOK thousand) | Note | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | FY 2023 |
|---|---|---|---|---|---|---|
| Unaudited | Unaudited | Unaudited | Unaudited | Audited | ||
| Cash Flow from operation | ||||||
| Profit before income taxes | 59,307 | 45,320 | 48,360 | -12,119 | 402,528 | |
| Taxes paid in the period | -8,832 | -8,929 | -46,443 | -57,327 | -91,037 | |
| Depreciation & Impairment | 9 | 118,160 | 100,833 | 233,134 | 196,651 | 404,136 |
| Effect of exchange fluctuations | 1,384 | -6,513 | 1,626 | 5,265 | 10,192 | |
| Change in net working capital | ||||||
| Change in inventory | -62,700 | 2,228 | -185,962 | 15,286 | 111,538 | |
| Change in trade debtors | -1,618 | -17,651 | 5,184 | -20,295 | -20,231 | |
| Change in trade creditors | 2,579 | -22,476 | -20,054 | -13,960 | 76,510 | |
| Change in other provisions ¹ | 2,915 | 35,882 | -51,716 | -54,147 | 67,808 | |
| Net cash flow from operations | 111,194 | 128,692 | -15,872 | 59,354 | 961,444 | |
| Cash flow from investment | ||||||
| Purchase of fixed assets | 9 | -43,215 | -58,481 | -91,449 | -115,650 | -163,697 |
| Loans to associated companies and joint ventures | 8, 10 | 0 | 0 | 0 | -12,785 | -17,785 |
| Net Cash flow from investments | -43,215 | -58,481 | -91,449 | -128,435 | -181,482 | |
| Cash flow from financing | ||||||
| Proceeds from long term loans | 0 | 0 | 0 | 130,000 | 0 | |
| Proceeds from revolving credit facility | 200,000 | 160,000 | 200,000 | 30,000 | 160,000 | |
| Repayment of revolving credit facility | 0 | 0 | 0 | 0 | -160,000 | |
| Repayment of Term Loans | -10,000 | -10,000 | -10,000 | -10,000 | -30,000 | |
| Overdraft facility | -2,819 | -7,358 | 44,477 | 141,061 | 0 | |
| Lease payments for principal portion of lease liability | -87,349 | -73,891 | -169,194 | -147,890 | -296,250 | |
| Dividend payment | -142,258 | -121,935 | -142,258 | -121,935 | -233,710 | |
| Net interest | -22,939 | -20,247 | -44,925 | -41,041 | -79,743 | |
| Net cash flow from financing | -65,365 | -73,431 | -121,900 | -19,806 | -639,703 | |
| Cash and cash equivalents at the beginning of the period | 0 | 0 | 225,067 | 75,721 | 75,721 | |
| Net change in cash and cash equivalents | 2,613 | -3,220 | -229,221 | -88,886 | 140,260 | |
| Exchange gains / (losses) on cash and cash equivalents | -2,614 | 3,221 | 4,156 | 13,164 | 9,084 | |
| Cash and cash equivalents at the end of the period | 0 | 0 | 0 | 0 | 225,065 |
¹ Change in other provisions includes other receivables, public duties payable, short-term liabilities and accrued interest.
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 second 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.
Q2 2024
| (Amounts in NOK thousand) |
Kid Interior |
Hemtex | Total |
|---|---|---|---|
| Revenue | 500,401 | 297,434 | 797,835 |
| COGS | -183,782 | -109,589 | -293,371 |
| Gross profit | 316,619 | 187,845 | 504,464 |
| Other operating revenue |
320 | 1,013 | 1,333 |
| Operating expense (OPEX) | -170,910 | -133,383 | -304,293 |
| EBITDA | 146,028 | 55,475 | 201,504 |
| Operating profit | 79,975 | 3,369 | 83,344 |
| Gross margin (%) | 63.3 % | 63.2 % | 63.2 % |
| margin (%) OPEX to sales |
34.2 % | 44.8 % | 38.1 % |
| EBITDA margin (%) | 29.2 % | 18.6 % | 25.2 % |
| Inventory | 497,434 | 262,455 | 759,889 |
| Total assets |
2,840,415 | 1,265,910 | 4,106,325 |
Financing agreements
At the balance sheet date, the Group has the following facilities:
| Utilised | |||||
|---|---|---|---|---|---|
| (Amounts in NOK thousand) | 30.06.2024 | 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 | 44,477 | 247,000 1 week IBOR + 1.10% | 12 months | At maturity | |
| 756,177 | 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 May 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
| Q2 2024 | Q2 2023 | H1 2024 | H1 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 or loss for the year | 48,415 | 36,446 | 39,269 | -10,198 | 313,827 |
| Earnings per share (basic and diluted) (Expressed in NOK per share) |
1.19 | 0.90 | 0.97 | -0.25 | 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 |
H1 2024 |
H1 2023 |
|---|---|---|
| (Loan) Holding AS Prognosgatan |
69,990 | 37,024 |
| Total | 69,990 | 37,024 |
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 | -390 | 2,379 | -520 | -56 | -672 |
| Additions, disposals and adjustments | 325,043 | 70,777 | 8,730 | ||
| Depreciation and amortisation | -175,515 | -47,472 | -10,147 | ||
| Balance 30.06.2024 | 1,199,167 | 328,862 | 1,513,331 | 45,226 | 69,497 |
| 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 | 20,912 | 7,441 | 2,470 | -438 | 3,183 |
| Additions, disposals and adjustments | 415,370 | 102,364 | 2,983 | ||
| Depreciation and amortisation | -154,550 | -38,734 | -3,368 | ||
| Balance 30.06.2023 | 1,042,467 | 308,316 | 1,512,694 | 34,504 | 68,662 |
The Group had the following subsidiaries as of 30 June 2024:
| Name | Place of business | Nature of business | Proportion of shares directly held by parent (%) | ||
|---|---|---|---|---|---|
| Kid Interiør AS | Norway | Interior goods retailer | 100 | ||
| Kid Logistikk AS |
Norway | Logistics | 100 | ||
| Kid Eiendom AS |
Norway | Logistics | 100 | ||
| Hemtex AB | Sweden | Interior goods retailer | 100 | ||
| Hemtex OY | Finland | Interior goods retailer | 100 | ||
| Kid International Logistic AB | Sweden | Logistics | 100 |
All subsidiary undertakings are included in the consolidation.
The Group had the following joint ventures as of 30 June 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 Q2-24 was MNOK -0.9 (MNOK 0.1). Per the reporting date, the carrying amount of the investment is MNOK 0.0 and MNOK -0.5 (MNOK -3.0) 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.
Kid ASA - Quarterly report | 15
We confirm, to the best of our knowledge, that the financial statements for the period 1 January to 30 June 2024 have been prepared in accordance with current applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the entity and the group taken as a whole. We also confirm, to the best of our knowledge, that the Board of Directors' Report includes a true and fair review of the development and performance of the business and the position of the entity and the group, together with a description of the principal risks and uncertainties facing the entity and the group.
Lier, 21 August 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
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.
