KID ASA GROUP REVENUES increased by 15.0% (+0.1%).
GROSS MARGIN increased by 5.5 percentage points to 61.5% (56.0%). OPEX increased by 7.6% (+8.8%).
EBITDA increased by MNOK 67.9 to MNOK 124.5 (MNOK 56.6). CASH FLOW from operations impacted by inventory build-up.
Kid ASA - Quarterly report | 2
13.5 % |
12.9 % |
9.3 % |
Group revenues
We are pleased to present the third consecutive quarter with double digit growth. Our value-for- money position and concept remain resilient amid continuing challenging market conditions. Growth in the quarter was accelerated by store projects, combined with omnichannel and category development initiatives. Historically, store projects mainly focused on refurbish and relocate existing stores, whereas we today consider expansion an important growth driver. We reached all-time high Q1 revenues of MNOK 696.5 with online sales exceeding MNOK 80, representing an online share of 12.0%.
Extended concept launched in Sweden
The Extended concept was launched online and in selected larger stores (+600 sqm.) in Hemtex during the quarter. We are satisfied with the results from the launch and look forward to continued rollout throughout the year. The Extended assortment comprise, among other things, sofas, carpets and beds, and is available in both segments and all our markets (i.e. Norway, Sweden, Finland and Estonia). We have raised our ambitions and plan to increase the number of Extended stores (+1,200 sqm.) from 10 to 15 stores in Norway by the end of 2025. Additionally, we remain committed to open 3 Extended stores in Sweden.
Gross margin development
Our gross margin has improved due to price adjustments and freight rates returning to historical levels. The situation in the Red Sea / Gulf of Aden has not impacted us materially, but we will continue to monitor the situation and are prepared to take actions if necessary.
Integrated sustainability report
The Group has released its first integrated sustainability report, transitioning from the Global Reporting Initiative (GRI) standards to the European Sustainability Reporting Standards (ESRS). This aligns our reporting with European standards and showcases our commitment to comprehensive sustainability through focused initiatives on climate action, responsible sourcing, and strategic risk management. Notably, the report includes a scenario analysis to evaluate the financial and operational impacts of climate change, enhancing our strategic planning and risk management.
Warehouse project in Sweden
The warehouse project in Sweden is on schedule. As previously communicated, we estimate that operations in the common warehouse for the Group will commence medio 2025.
Store portfolio development
We are continuously working to extend and relocate our current stores to the standard store size of ~600 sqm. Compared to 2021, Kid Interior and Hemtex have increased the average square meter per store in the portfolio by 4.3% to 478 sqm. and 9.5% to 402 sqm., respectively. The numbers for Kid Interior exclude the 5 Extended stores in Norway.
Financial Objectives revised
The acceptance for the Kid concept is in general very positive - and on the back of three quarter with significant growth have we raised our like- for-like growth target with one percentage point from previously 3-4% to 4-5% going forward. The targeted growth is partly fueled by investments in stores. Expected maintenance CAPEX is consequently increased from MNOK 100 to MNOK 125 on an annual basis. New standard stores (~600 sqm.) are expected to trigger an additional MNOK 3 in CAPEX and MNOK 6 for Extended stores (+1,200 sqm.). OPEX relative to sales are expected to stay at current level and the targeted dividend pay-out ratio of 80-100% of adjusted net profit remains unchanged. A complete list of our revised financial objectives was included in our 2023 annual report.
-0.3 % | -3.3 % | ||||||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | ||||
Q1 | Q2 | Q3 | Q4 |
420
144
241
167 74
125 | 45 | 275 | |||||||||
57 | 33 | ||||||||||
167 | |||||||||||
5 | 92 | 121 | |||||||||
52 | 0 | ||||||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | ||||
Q1 | Q2 | Q3 | Q4 | ||||||||
Kid Interior | Hemtex | ||||||||||
Kid ASA - Quarterly report | 3
(Amounts in NOK million) | Q1 2024 | Q1 2023 | FY 2023 |
Revenue | 696.5 | 605.4 | 3,413.6 |
Like-for-like growth including online sales ¹ | 13.5 % | -0.3 % | 5.5 % |
COGS | -268.2 | -266.2 | -1,314.3 |
Gross profit | 428.2 | 339.2 | 2,099.3 |
Gross margin (%) | 61.5% | 56.0% | 61.5% |
Other operating income | 0.8 | 0.6 | 4.3 |
Employee benefits expense | -179.0 | -160.9 | -704.7 |
Other operating expense | -221.3 | -205.6 | -854.0 |
Other operating expense - IFRS 16 effect | 95.6 | 83.2 | 339.6 |
OPEX | -304.6 | -283.2 | -1,219.1 |
EBITDA | 124.5 | 56.6 | 884.5 |
EBITDA margin (%) | 17.9% | 9.3% | 25.9% |
Depreciation | -28.2 | -20.3 | -92.6 |
Depreciation - IFRS 16 effect | -86.8 | -75.5 | -311.6 |
EBIT | 9.5 | -39.2 | 480.4 |
EBIT margin (%) | 1.4% | -6.5% | 14.1% |
Net financial income (expense) | -6.1 | -8.7 | -33.3 |
Net financial expense - IFRS 16 effect | -13.8 | -9.2 | -43.3 |
Share of result from joint ventures | -0.6 | -0.4 | -1.2 |
Profit before tax | -10.9 | -57.4 | 402.5 |
Net income | -9.1 | -46.6 | 313.8 |
Earnings per share | -0.23 | -1.15 | 7.72 |
Liabilities to financial institutions | -568.9 | -700.1 | -521.7 |
Lease liabilities - IFRS 16 effect | -1,221.2 | -1,089.3 | -1,084.9 |
Cash | 0.0 | 0.0 | 225.1 |
Net interest bearing debt | -1,790.1 | -1,789.4 | -1,381.5 |
¹Calculated in constant currency
2024 is off to a good start with an EBITDA increase of MNOK 67.9 in Q1. Increased number of customers and basket size resulted in the third consecutive quarter with double-digitlike-for-like growth. Gross margin improved due to price adjustments in Q1-23 to meet higher currency hedge levels going forward, combined with an
Online revenues increased by 16.2% (+1.8%) in the quarter and represented 12.0% (11.7%) of total revenues.
Categories launched since 2022 accounted for MNOK 27.0 (MNOK 9.8) in revenues.
Gross margin
Kid ASA - Quarterly report | 4
1,253 | ||||
724 | 831 | 485 | ||
605 | 696 | |||
313 | ||||
259 | 273 | |||
220 | ||||
769 | ||||
518 | ||||
386 | 438 | 451 |
inventory comprising lower freight costs. Operating expenses (OPEX) increased mainly due to general salary and price increases.
Group revenues
Both Kid Interior and Hemtex experienced increased gross margins compared to Q1-23, driven by freight rates on historical levels in combination with price adjustments implemented during Q1-23 to meet higher currency
2023 2024
Q1
2023 2024
Q2
Kid Interior
2023 | 2024 | 2023 | 2024 |
Q3 | Q4 |
Hemtex
Total Group revenues increased by 15.0% (+0.1%), with consistent growth in every month of the quarter. In constant currency, revenues increased by 13.7% (-1.3%). Net new stores contributed positively. Across several categories, we are experiencing positive growth, with bedlinen, curtains, and furniture standing out as important growth drivers.
The like-for-like revenue growth increase was 13.5% (-0.3%) in the quarter. Both Kid Interior and Hemtex experienced positive revenue development in physical stores.
hedging levels going forward.
As previously communicated, the gross margin in Q1-23 was unusually low as the high freight rates in 2022 were not sufficiently incorporated in our price calculation models.
56.0 | 61.5 % | 62.2 % | 62.1 % | 63.4 % | 56.0 | 61.5 % | |||
% | % | ||||||||
0.0 % | 0.0 % | 0.0 % | |||||||
Q1 | Q2 | Q3 | Q4 | YTD | |||||
2023 | 2024 | ||||||||
Employee expenses increased by MNOK 18.1 to MNOK 179.0:
- MNOK 7.1 in LFL stores mainly due to general salary inflation and increased working hours in Hemtex
- MNOK 1.1 increase from net new stores
- MNOK 0.9 due to higher bonus expenses than estimated and accrued for 2023
- MNOK 1.6 in HQ costs due to general salary increase and increased number of employees
- MNOK 5.5 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 1.9 due to changes in SEKNOK exchange rate
Other operating expenses increased by
MNOK 3.3 to MNOK 125.6:
- MNOK 11.8 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 produced in the Baltics
- MNOK 1.5 increase in net new stores
- MNOK 3.1 from increased marketing cost
- MNOK 0.2 in HQ costs
- MNOK -4.0 in Logistics operating costs mainly due to personnel costs in Sweden, presented as employee expenses this year. This reduction was partly offset by increase in logistics operating material cost and increased number of external workforce hours in Norway
- MNOK -11.3 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 2.0 due to changes in SEKNOK exchange rate
EBITDA increased compared to Q1-23 mainly due to increased revenues and improved gross margin.
Depreciation increased compared to last year and is mainly due to investments in the new warehouse in Sweden and IFRS 16 effect related to the rental portfolio.
Net financial expenses of MNOK 19.9 (MNOK 17.9) relates to net interest expenses of MNOK 2.9 (MNOK 5.6), net other financial expenses of MNOK 0.9 (MNOK 0.7), net FX expenses of MNOK
2.3 (MNOK 2.4) and IFRS 16 interest expenses of MNOK 13.8 (MNOK 9.2).
Liquidity and borrowings
Excluding IFRS 16 effects, net interest- bearing debt was MNOK 568.9 (MNOK 700.1) at the end of the quarter, corresponding to a gearing ratio of
0.95x (1.94x) of LTM EBITDA. The Group had cash and available credit facilities of MNOK 554.7 (MNOK 328.6) as of 31 March 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 affected by inventory build-up compared to last year. The inventory was 4.1% above last year's level at the end of the quarter. Investments reflects mainly CAPEX relating to store openings and projects, and cash flow from financing represent use of overdraft facility and increased lease payments following index adjustment of rental costs.
Capital expenditures (CAPEX) amounted to MNOK 39.5 (MNOK 48.4) during Q1, mainly relating to store openings and refurbishments. Investments in the new warehouse in Sweden accounted for MNOK 0.6 (MNOK 24.2) in the quarter.
Kid ASA - Quarterly report | 5
376 | |||||||||||
283 | 305 | 285 | |||||||||
275 | 156 | ||||||||||
122 | 126 | 122 | 114 | ||||||||
179 | 220 | ||||||||||
161 | 162 | 161 | |||||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | ||||
- | - | - | |||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||
Personell | Other Opex | ||||||||||
Operations | Investments | Dividend | Lease payments | Change in debt | Net interest | Change in cash |
KID Interior | |||
(Amounts in NOK millions) | Q1 2024 | Q1 2023 | FY 2023 |
Revenue | 437.7 | 385.9 | 2,122.9 |
Revenue growth | 13.4 % | 5.2 % | 7.0 % |
LFL growth including online sales | 12.7 % | 3.5 % | 6.1 % |
COGS | -168.3 | -172.2 | -796.2 |
Gross profit | 269.4 | 213.7 | 1,326.7 |
Gross margin (%) | 61.5 % | 55.4 % | 62.5 % |
Other operating revenue | 0.0 | 0.0 | 0.1 |
Employee benefits expense | -111.8 | -101.0 | -436.5 |
Other operating expense | -118.3 | -108.2 | -463.9 |
Other operating expense - IFRS 16 effect | 52.2 | 47.4 | 189.2 |
EBITDA | 91.6 | 52.0 | 615.5 |
EBITDA margin (%) | 20.9 % | 13.5 % | 29.0 % |
No. of shopping days | 75 | 77 | 306 |
No. of physical stores at period end | 157 | 155 | 157 |
Hemtex | |||
(Amounts in NOK millions) | Q1 2024 | Q1 2023 | FY 2023 |
Revenue | 258.8 | 219.5 | 1,290.7 |
Revenue growth ¹ | 14.3 % | -10.9% | 3.2 % |
LFL growth including online sales ¹ | 14.9 % | -6.5% | 4.4 % |
COGS | -99.9 | -94.0 | -518.0 |
Gross profit | 158.9 | 125.5 | 772.6 |
Gross margin (%) | 61.4 % | 57.2 % | 59.9 % |
Other operating revenue | 0.8 | 0.6 | 4.2 |
Employee benefits expense | -67.2 | -59.9 | -268.2 |
Other operating expense | -103.0 | -97.4 | -390.0 |
Other operating expense - IFRS 16 effect | 43.4 | 35.8 | 150.4 |
EBITDA | 33.0 | 4.6 | 269.0 |
EBITDA margin (%) | 12.7 % | 2.1 % | 20.8 % |
No. of shopping days | 90 | 89 | 362 |
No. of physical stores at period end (excl. franchise) | 118 | 118 | 119 |
Kid ASA - Quarterly report | 6
275*
104*
7
157
7
Kid Group | Segment: Kid Interior | Segment: Hemtex |
¹ Calculated in local currency | *Fully-owned stores. Hemtex has an additional 11 franchise stores |
Revenues increased compared to last year, mainly due to increased footfall in both physical stores and online. The number of shopping days were reduced by two days to 75 (77) in total for the quarter.
Online revenues increased by +33.3% (+20.8%) to MNOK 51.0 (MNOK 38.3).
Gross margin increased by 6.1 percentage points driven by freight rates back on historical levels in combination with price adjustments implemented during Q1-23 to meet higher currency hedging levels going forward.
Employee expenses increased by MNOK 10.8:
- MNOK 5.1 in LFL stores mainly due to general salary inflation and store projects activity
- MNOK 1.0 due to net new stores
- MNOK 2.3 due to higher bonus expenses for last year than accrued
- MNOK 1.5 in HQ costs mainly due to increase in HQ staff as well as general salary increases
- MNOK 0.9 in Logistics due to increased sales activity
Other operating expenses increased by MNOK 5.3:
- MNOK 7.2 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 produced in the Baltics
- MNOK 1.1 in net new stores
- MNOK 1.7 from increase of marketing cost
- MNOK -0.9 in HQ, mainly related to less use of external consultants partly offset by higher IT costs
- MNOK 1.0 in Logistics mainly due to increase in logistics operating materials and increased number of external workforce hours
- MNOK -4.8 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
Kid ASA - Quarterly report | 7
13.4 % | |||||||
13.1 % | 9.3 % | ||||||
5.2 % | |||||||
-1.8 % | |||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
Q1 | Q2 | Q3 | Q4 |
275.4 | |||||||
166.9 | |||||||
121.2 | |||||||
91.6 | |||||||
52.0 | |||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
Q1 | Q2 | Q3 | Q4 |
Revenues increased, mainly due to increased footfall. The number of shopping days increased by one day to 90 (89) for the quarter.
The Extended concept was launched online and in selected larger stores (+600 sqm.) in Hemtex during the quarter and contributed positively to revenues.
Online revenues decreased by -3.2%(-14.0%) to MNOK 32.7 (MNOK 33.7) based on a constant currency calculation. The decrease in online revenues is mainly due to a change in the campaign activity plan.
Hemtex 24h revenues decreased by MNOK 1.9 compared to Q1-23. 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 4.2 percentage points driven by freight rates on historical levels in combination with price adjustments implemented during Q1-23 to meet higher currency hedging levels going forward.
Employee expenses increased by MNOK 7.3:
- MNOK 2.1 in LFL stores mainly due to increase in working hours as well as general salary increase
- MNOK 0.1 due to net new stores
- MNOK -1.4 due to lower bonus expenses for last year than accrued
- MNOK 0.1 in HQ due to a reduced number of employees and less services provided by HQ in Norway, partly offset by higher pension costs
- MNOK 4.5 in Logistics due to new employees following the inhouse logistic operations in Sweden
- MNOK 1.9 due to changes in SEKNOK exchange rate
Other operating expenses decreased by MNOK -2.0:
- MNOK 4.6 in LFL stores, mainly related to index adjustment of rental costs and store expansions
- MNOK 0.5 in net new stores
- MNOK 1.4from increase of marketing cost
- MNOK 1.2 in HQ mainly due to increased IT costs
- MNOK -5.1 in Logistics operating costs mainly due to personnel costs presented as employee expenses
following the inhouse operations
- MNOK -6.5 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 1.9 due to changes in SEKNOK exchange rate
Kid ASA - Quarterly report | 8
14.3 % | |||||||
11.9 % | |||||||
10.5 % | |||||||
-10.9 % | -4.8 % | ||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
Q1 | Q2 | Q3 | Q4 |
144.5 | |||||||
74.5 | |||||||
33.0 | 45.4 | ||||||
4.6 | |||||||
2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 |
Q1 | Q2 | Q3 | Q4 |
Kid ASA - Quarterly report | 9
Revenue development in April Group revenues in constant currency were up by 25.5% (-5.1%)in April and up by 16.6% (-2.3%) year-to-dateper April, highly impacted by a change in the campaign plan in Kid Interior fueling the April development at the expense of revenues in May. The number of shopping days in Kid Interior was 25 in April this year compared to 22 days last year. The number was 30 days in both years in Hemtex.
Sale of warehouse property in Sweden A sale of the warehouse property in Sweden will be considered over the coming 6-12months through a sale of Prognosgatan Fastighets AB.
Lier, 15 May 2024
The Board of Kid ASA
Petter Schouw-Hansen | Karin Bing Orgland |
Chair | Board member |
Rune Marsdal | Liv Berstad |
Board member | Board member |
Gyrid Skalleberg Ingerø | Espen Gundersen |
Board member | Board member |
Anders Fjeld
Chief Executive Officer
Kid ASA - Quarterly report | 10
(Amounts in NOK thousand) | Note | Q1 2024 | Q1 2023 | FY 2023 |
Unaudited | Unaudited | Audited | ||
Revenue | 696,485 | 605,403 | 3,413,595 | |
Other operating revenue | 844 | 620 | 4,270 | |
Total revenue | 697,329 | 606,023 | 3,417,866 | |
Cost of goods sold | -268,238 | -266,198 | -1,314,280 | |
Employee benefits expense | -178,470 | -160,855 | -704,722 | |
Depreciation and amortisation expenses | 9 | -114,974 | -95,818 | -404,136 |
Other operating expenses | -126,113 | -122,329 | -514,371 | |
Total operating expenses | -687,795 | -645,200 | -2,937,508 | |
Operating profit | 9,534 | -39,178 | 480,357 | |
Financial income | 4,891 | 2,686 | 10,844 | |
Financial expense | -24,782 | -20,589 | -87,473 | |
Net financial income (+) / expense (-) | -19,891 | -17,903 | -76,630 | |
Share of result from joint ventures | -590 | -358 | -1,200 | |
Profit before tax | -10,946 | -57,439 | 402,528 | |
Income tax expense | 1,800 | 10,795 | -88,701 | |
Net profit (loss) for the period | -9,146 | -46,644 | 313,827 | |
Interim condensed consolidated statement of | ||||
comprehensive income | ||||
Profit for the period | -9,146 | -46,644 | 313,827 | |
Other comprehensive income | 66,253 | 72,924 | 62,695 | |
Tax on comprehensive income | -13,844 | -10,501 | -8,335 | |
Total comprehensive income for the period | 43,262 | 15,780 | 368,187 | |
Attributable to equity holders of the parent | 43,262 | 15,780 | 368,187 | |
Basic and diluted Earnings per share (EPS): | -0.23 | -1.15 | 7.72 |
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Kid ASA published this content on 16 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2024 05:33:02 UTC.
