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) FY24 trading update was in broadly in line with our expectations. More importantly, the update implicitly addressed two of the market's key concerns.</li><li>(1) It confirmed sales declines are sequentially getting less worse, suggesting that we could be getting closer to the end of KMD's earnings downgrade cycle (albeit the wholesale channel remains challenging).</li><li>(2) It showed KMD can effectively manage its working capital, inventory, and net debt levels, which eases concerns around its balance sheet. </li></ul>

KMD Brands' (KMD) FY24 trading update was in broadly in line with our expectations. More importantly, the update implicitly addressed two of the market's key concerns.(1) It confirmed sales declines are sequentially getting less worse, suggesting that we could be getting closer to the end of KMD's earnings downgrade cycle (albeit the wholesale channel remains challenging).(2) It showed KMD can effectively manage its working capital, inventory, and net debt levels, which eases concerns around its balance sheet. 

Kathmandu Holdings

KMD Brands - Positioned to Ride the Wave