Kid ASA - Lower than expected gross margin in Q3 2022

04 Nov 2022 12:02 CET

Lier, 4 November 2022.

Kid will in Q3 2022 report lower than expected gross margin due to high freight
cost. Overseas freight cost expressed as percentage of cost of goods sold was
21.7% in Q3 2022, up from 10.9% in Q3 2021.

Our price model has not sufficiently taken into consideration the volatility in
fright cost and consequently not been reflected in increased sales prices. The
reported gross margin was 55.5% in Q3 2022, down from 61.4% in Q3 last year.

The higher freight cost is also expected to negatively impact the gross margin
for Q4 2022 and into 2023.

With freight spot rates currently decreasing combined with actions to secure
normalized margins for future purchases, we expect a gradual gross margin
improvement during 2023.

Our Financial Objective; stable gross margin in line with the past 10 years,
remains unchanged for 2023.

Management will elaborate on this topic during the upcoming presentation on
Tuesday 8 November 2022.

ENQUIRIES:

Anders Fjeld, CEO, KID ASA, +47 996 32 121

More information:
Access the news on Oslo Bors NewsWeb site

574791_Release.pdf