KMD Brands (ASX:KMD) has released its financial results for the six months ended Jan. 31, revealing a period of growth in top-line sales contrasted by statutory losses and a major capital restructure.
The group reported total sales of NZ$505.4 million, representing a 7.3% increase compared to the same period last year.
The momentum was largely driven by the Kathmandu brand, which saw solid growth across both direct-to-consumer and wholesale channels.
Despite the rise in revenue, the group's bottom line remains under pressure.
KMD Brands reported a statutory NPAT loss of NZ$13.1 million, while the underlying NPAT loss sat at NZ$11.5 million.
While the underlying EBITDA saw a massive 196.6% year-on-year surge to NZ$11.5 million, gross margins softened slightly, declining by 1.2% to 56.8%.
Operating expenses also rose by 2.4%, reaching NZ$275.6 million.
Consequently, the board has decided not to declare an interim dividend for H1 FY26, citing the half-year operating performance.
To strengthen its financial position, the group announced a NZ$65.3 million fully underwritten equity raising alongside a comprehensive refinancing of its debt facilities.
As of the end of January, net debt stood at NZ$94 million, a figure impacted by the weakening of the New Zealand dollar.
Net working capital was reported at NZ$179.2 million, down NZ$13.4 million from the previous year.