On the face of it, not a bad result given they flagged the first...

On the face of it, not a bad result given they flagged the first half as softer than expected. Seems as if January sales bounced to give reasonable EBIT growth of 10%. Problem is, taking out the acquisition they would have been flat or slightly down.

Sales of KMD products in NZ is a concern, even if margins widened slightly, I can't see this being the case if sales fall further - they'll need to discount. Australian sales are the main driver, with flat growth, but that's not too bad given trading conditions currently. If AU sales and margins can show growth in the second half, with the NZ side stabilising then I'll be more confident moving forward.