PROFIT WHITEWASH FOR BILLABONG

PROFIT WHITEWASH FOR BILLABONG

BILLABONG International has reported half year profit (NPAT) of $57.2 million - down 18 per cent on last year’s $69.7 million.

The strength of the Aussie dollar against the Euro and the $USD had a significant adverse impact on the company – eroding almost $50 million off revenues and $6 million off profit. Earnings per share of 22.8 cents were down 18.3 per cent.

The Gold Coast’s largest company, with market cap exceeding $2 billion, had sales revenues of $834.9 million – up 15.8 per cent compared with the corresponding period last year. Revenues in the key markets of the Americas were $408.4 million, up 38.2 per cent.

CEO Derek O’Neill, in a statement to the ASX, attributed the result to a ‘very weak’ retail environment in Australia, combined with the initial dilutive impact of recent acquisitions of Australian retailers SDS/Jetty Surf and Rush Surf, whose results are yet to reflect the benefit of the buy.

The surfing apparel and hardware giant continued to invest in major boardsport-inspired events and athletes. Key marketing initiatives included the hosting of the Billabong Pro World Championship Tour surfing events in South Africa and Tahiti and the Billabong Pipeline Masters in Hawaii, along with the World Junior Championships in Australia.

The company views the 2010-11 financial year as a transition year, with the strong sales revenue growth in the first half. It expects full FY revenues of $1.7 billion.

Shares remained flat today at $8.00.

Don’t miss the full interview with Billabong CEO Derek O’Neill in the March edition of Gold Coast Business News, where the city’s top companies will be revealed.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Board exodus gathers pace at The Star after O’Neill resigns as chairman

Board exodus gathers pace at The Star after O’Neill resigns as chairman

The Star Entertainment Group (ASX: SGR) is now on the hunt for a ne...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

The Australian screen sector has bagged two major wins today, with ...

Scrap metal recycler Sims picks up Brisbane port site for $88 million

Scrap metal recycler Sims picks up Brisbane port site for $88 million

In order to acquire one of the few remaining Brisbane sites with de...