September 25, 2024 • 3 mins
Sales at Kathmandu owner KMD Brands slumped by 11 percent, with all three of its brands feeling the effect of weak consumer confidence in its latest financial year.
The company had a statutory net profit after tax decline of $48.3 million for FY24, including a one-off non-cash impairment on the goodwill of its shoe brand Oboz of $40.3 million.
Milford Asset Management's Sam Trethewey says investors didn't have high expectations ahead of this announcement.
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Speaker 1 (00:00):
Seventeen past six. Samras are We Milford Asset Management, Hello.
Speaker 2 (00:03):
Sam, Evening Heather, Well, jeez, it was a bit.
Speaker 1 (00:05):
Rough from Catman Do. How did the market received that?
Speaker 2 (00:08):
I like, I think it would be fair to say
investor expectations weren't that high game as the result, and
that turned out to be rightly so that the overall
performance from Catman Do was soft compared to the prior year.
So the business went from declaring a headline reported profit
of thirty six million last year to a loss this
year of forty eight million, which is really driven by
(00:29):
soft training and a pretty decent impairment against one of
its businesses. So consequently they didn't declare a dividend given
that self performance. If you look at the Catman Do
group these days, it includes surf brand and ripkeurl as
well as an outdoor full wheel brand called Obo, so
not just selling the buffer jackets. Everyone knows. But I
think it really was reflective of subdued economic environment across
(00:51):
its brands, possibly a bit of increased competition from Macpack
within its within the Catman Do business, but also was
very consistent across each of the regions it operates. The globally,
so not surprising, but really confirms that things are tough
out there still for retailers.
Speaker 1 (01:10):
YEA on Fonterra, I mean, it's come back a wee
bit from last year's record, but it's still pretty strong,
isn't it.
Speaker 2 (01:17):
I think it's a very decent contrast to what's going
on at Catmandu that the Fonterra results would have kept
Farmer shareholders and investors very happy. So they came in
and reported earnings and profits at the top end of
their prior guidance seventy cents per year. That was down
from last year's stellar year, which was eighty cents per year,
but it still represents a very good year and well
(01:37):
above what they have achieved over the past decades. And
they did declare a special dividends which wasn't anticipated by shareholders,
of fifteen cents as well, so that shows that the
balance sheet as in good shape. If you wanted to
be critical, you could say that Fonterra was a little
bit cautious in its guidance for the air he had
so only really talking in line with long term targets,
and they put a pretty wide range on their milk
(01:59):
price forecasts well, but it's early in the season season
and I'd expect them to adjust that throughout the year.
Speaker 1 (02:06):
You know, Miles Harrel has made quite a play of
the fact that there were going to be some really
big changes to Fonterra's strategy under him. Are we starting
to see the benefit of those?
Speaker 2 (02:14):
Do you think yes? I think that's really the key
positive out of the Fonterra result and why I think
the share price has been performing the way it is
is that that strategy, the changes that Miles has put
in and as management team, that prioritization and refocus on
the core New Zealand business is now clearly beginning to
deliver returns for the co ops. So if you look
(02:35):
back at the last decade, Fontira had been a real
underperform on the share market due to largely ongoing issues
across its offshore activities, be at their farms in China,
South American Ventures or its global consumer business. So the
changes that Miles has made simplifying the business focusing in
on that core has made it a lot less volatile,
(02:56):
more stable, far easier for investors to understand. The share
advice has performed well since, so I think well, done
to his management team. They certainly have looked to make
some good decisions and it's flying through to the earnings.
The challenge for them is to keep it going and
judging by what they're saying today, there is further refinement
to be made at strategy announcement next week.
Speaker 1 (03:18):
Sam, it's always good to talk to you. I really
appreciate your time mate that Sam Trafur. We have Milford
Asset Management. For more from Hither Duplessy Allen Drive.
Speaker 2 (03:25):
Listen live to news talks.
Speaker 1 (03:27):
It'd be from four pm weekdays, or follow the podcast
on iHeartRadio.
Seventeen past six. Samras are We Milford Asset Management, Hello.
Speaker 2 (00:03):
Sam, Evening Heather, Well, jeez, it was a bit.
Speaker 1 (00:05):
Rough from Catman Do. How did the market received that?
Speaker 2 (00:08):
I like, I think it would be fair to say
investor expectations weren't that high game as the result, and
that turned out to be rightly so that the overall
performance from Catman Do was soft compared to the prior year.
So the business went from declaring a headline reported profit
of thirty six million last year to a loss this
year of forty eight million, which is really driven by
(00:29):
soft training and a pretty decent impairment against one of
its businesses. So consequently they didn't declare a dividend given
that self performance. If you look at the Catman Do
group these days, it includes surf brand and ripkeurl as
well as an outdoor full wheel brand called Obo, so
not just selling the buffer jackets. Everyone knows. But I
think it really was reflective of subdued economic environment across
(00:51):
its brands, possibly a bit of increased competition from Macpack
within its within the Catman Do business, but also was
very consistent across each of the regions it operates. The globally,
so not surprising, but really confirms that things are tough
out there still for retailers.
Speaker 1 (01:10):
YEA on Fonterra, I mean, it's come back a wee
bit from last year's record, but it's still pretty strong,
isn't it.
Speaker 2 (01:17):
I think it's a very decent contrast to what's going
on at Catmandu that the Fonterra results would have kept
Farmer shareholders and investors very happy. So they came in
and reported earnings and profits at the top end of
their prior guidance seventy cents per year. That was down
from last year's stellar year, which was eighty cents per year,
but it still represents a very good year and well
(01:37):
above what they have achieved over the past decades. And
they did declare a special dividends which wasn't anticipated by shareholders,
of fifteen cents as well, so that shows that the
balance sheet as in good shape. If you wanted to
be critical, you could say that Fonterra was a little
bit cautious in its guidance for the air he had
so only really talking in line with long term targets,
and they put a pretty wide range on their milk
(01:59):
price forecasts well, but it's early in the season season
and I'd expect them to adjust that throughout the year.
Speaker 1 (02:06):
You know, Miles Harrel has made quite a play of
the fact that there were going to be some really
big changes to Fonterra's strategy under him. Are we starting
to see the benefit of those?
Speaker 2 (02:14):
Do you think yes? I think that's really the key
positive out of the Fonterra result and why I think
the share price has been performing the way it is
is that that strategy, the changes that Miles has put
in and as management team, that prioritization and refocus on
the core New Zealand business is now clearly beginning to
deliver returns for the co ops. So if you look
(02:35):
back at the last decade, Fontira had been a real
underperform on the share market due to largely ongoing issues
across its offshore activities, be at their farms in China,
South American Ventures or its global consumer business. So the
changes that Miles has made simplifying the business focusing in
on that core has made it a lot less volatile,
(02:56):
more stable, far easier for investors to understand. The share
advice has performed well since, so I think well, done
to his management team. They certainly have looked to make
some good decisions and it's flying through to the earnings.
The challenge for them is to keep it going and
judging by what they're saying today, there is further refinement
to be made at strategy announcement next week.
Speaker 1 (03:18):
Sam, it's always good to talk to you. I really
appreciate your time mate that Sam Trafur. We have Milford
Asset Management. For more from Hither Duplessy Allen Drive.
Speaker 2 (03:25):
Listen live to news talks.
Speaker 1 (03:27):
It'd be from four pm weekdays, or follow the podcast
on iHeartRadio.
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