New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>KMD Brands’ (KMD) 1H23 update shows sales across its key markets has recovered strongly in the first half versus the prior year, although EBITDA was lower than expected due to higher costs.</li><li>The underlying 1H23 EBITDA guidance of ~NZ$45m is below both our (~-11%) and consensus expectations (~-13%).</li><li>KMD noted gross margins remain resilient overall so operating expenses are likely to have grown materially from 1H22. We expect FY23 consensus downgrades as a result.</li></ul>

KMD Brands’ (KMD) 1H23 update shows sales across its key markets has recovered strongly in the first half versus the prior year, although EBITDA was lower than expected due to higher costs.The underlying 1H23 EBITDA guidance of ~NZ$45m is below both our (~-11%) and consensus expectations (~-13%).KMD noted gross margins remain resilient overall so operating expenses are likely to have grown materially from 1H22. We expect FY23 consensus downgrades as a result.

KMD Brands (KMD): 1H23 Update – Initial Impressions

Kathmandu Holdings

KMD Brands (KMD): 1H23 Update – Initial Impressions