A strong Christmas trading period which saw its New Zealand same store sales rise by 14.1% has seen outdoor clothing retailer Kathmandu post an interim net profit of $4.4 million.
The profit follows a loss of $2.4 million in the first half of 2009, but does not include a total of $21.3 million in costs associated with the company’s IPO late last year.
The results were well above the figures predicted in the Kathmandu’s (NZX:KMD) prospectus, with sales of $106.6 million coming in 9.8% higher than the forecasted sales, while ebitda of $18.1 million was 19.9% higher than the prediction of $15.1 million.
Overall, the company – which recently joined the ASX 300 and has been a member of the NZX 50 since November – saw its same stores sales grow by 13.7% and reported strong results from Christmas sales promotions, while new stores were "trading to expectations".
Earnings before interest and tax increased 49.6% to $15.5 million, excluding the one-off costs associated with its initial public offering of shares in November.
Kathmandu chief executive Peter Halkett said the company’s first public results announcement were achieved in an improved retail environment, supported by continued tight margin and expense control.
“Whilst this was a very positive result and ahead of our prospectus forecast it must be remembered that Kathmandu’s first half year provides a relatively low proportion of the full year’s profit. Also we are cycling a stronger trading performance in the second half year of FY09 compared to first half year FY09”.
He said the Australian result, where same store sales were up 9.9% reflected the flow through effect of the economic stimulus packages introduced by the Australian Government from December 2008.
“We do expect Australian trading for the second half year to be similarly impacted from cycling the autumn 2009 Australian stimulus package”.
The company opened eight new stores in the period, with two openings in New Zealand in Timaru and Onehunga.
Kathmandu is expecting to exceed the prospectus forecast of 12 new stores in the full financial year with two new stores in Ballarat and Hastings, along with the relocated Christchurch city store, due to open before the end of March.
It said it was confident it will meet its full year prospectus net profit forecast of $30.9 million.
No interim dividend will be paid, but if it does meet its forecast, Kathmandu said a dividend of 6.7 cents per share will be declared in the second half.
Robert Smith
Thu, 18 Mar 2010