Kid (KID) investor relations material

Executive summary

• Group revenues rose 9.1% year-over-year to NOK 800.5 million, driven by strong online sales, seasonal assortments, and contributions from Kid and Hemtex.

• Gross margin improved to 61.2%, supported by lower freight costs and reduced clearance sales.

• EBITDA increased by MNOK 17.3 to MNOK 132.7, with margin up to 16.5%.

• Warehouse operations stabilized, and system modernization is progressing, enhancing efficiency.

• Store portfolio optimization and expansion toward larger standard store sizes continued.

Financial highlights

• Like-for-like revenues grew 6.1% year-over-year; online revenues surged 24.8%, now representing 14.1% of group revenues.

• Operating expenses increased by 8.6%, mainly due to new stores, higher activity, and currency effects.

• Net income was negative at MNOK -38.9, down from MNOK -30.1 last year, mainly due to higher financial expenses.

• Cash and available credit facilities at quarter-end totaled MNOK 296.2.

• Net interest-bearing debt (excluding IFRS 16) rose to MNOK 1,013.8, with a gearing ratio of 2.04x.

Outlook and guidance

• Ongoing system modernization and warehouse efficiency improvements are expected to continue through 2026 and into 2027.

• Store portfolio development will remain disciplined, targeting optimal store size and selective expansion.

• Category development, especially in garden and outdoor furniture, and digital initiatives, including Hemtex's entry into Germany, are key growth drivers.

• Group revenues increased 4.6% in April and 7.1% year-to-date per April, including Easter timing effects.

• Management remains confident in securing a long-term solution for the Lier warehouse facility.