Kathmandu Holdings, founded in New Zealand will raise NZ$207M to strengthen its balance sheet amid the coronavirus pandemic and a 40 per cent drop in profit.
The company will raise equity via a fully underwritten NZ$30M institutional placement and a 1.2 for one pro-rata accelerated non-renounceable entitlement offer to raise NZ$177M.
Kathmandu saw its first-half total net profit drop 41.7 per cent to NZ$8.14 million. However, the Christchurch-based outdoor apparel and equipment company’s sales jumped by 58.8 per cent to NZ$363.7M. This followed the completion of its A$350M purchase of surf brand Rip Curl, which enjoyed a first-half sales jump of 3.7 per cent.
Kathmandu Chief Executive Xavier Simonet said the company’s first-half results demonstrated the strong position it would have been in “had the COVID-19 pandemic not occurred”.
