Billabong International Limited had a record year, surpassing AUD$1 billion in sales for the first time. The company completed several acquisitions during the fiscal year, including adding Nixon watches to its stable of brands. Overall net sales totaled AUD$1.02 billion ($786.6 mm), a 21.1% jump from sales of AUD$848.4 million ($639.3 mm) during the previous fiscal year.
Sales grew in all regions for the action sports manufacturer, with sales in the
Americas increasing 30.4% to $385.7 million, or in Australian dollar terms,
increasing 32.8% to AUD$521.9 million. EBITDA in the region rose 35.0% to
$73.6 million, with Canada and owned operations in South America said to be
“growing strongly, posting local currency sales revenue increases over the
prior year in excess of 50% and 60%, respectively.”
Europe had a strong second half to increase full year sales 20.3% to 120.1
million ($151.5 mm). In Australian dollar terms, sales lifted 17.0% to
AUD$201.1 million. EBITDA rose 36.4% to 21.1 million ($25.7 mm), with
Spain, France, Italy, and Germany all recording “strong double-digit growth.”
Sales in the Australasian region increased 7.1% to AUD$295.2 million
($222.4 mm), a strong result on the back of the 43.1% increase in the prior
year. EBITDA increased 1.1% to AUD$94.9 million ($71.0 mm). Sales revenues
in local currencies were particularly strong with Japan increasing by approximately
30% and New Zealand increasing by approximately 18%.
From its acquisition of Nixon, Inc. at the start of the year, Billabong realized
an AUD$21.6 million ($16.0 mm) benefit in sales and a gain of AUD$0.5 million
($0.4 mm) in net profit for the period extending from January 27, 2006
to June 30, 2006.
Net profit increased 16.5% to AUD$145.9 million ($109.9 mm) from
AUD$125.2 million ($94.4 mm) last year.
The company expects to achieve 15% earnings per share growth in the
2006-07 financial year.
