Billabong fought negative currency fluctuations and came out on top for their fiscal year ended June 30. Worldwide full-year sales totaled AU$679.3 million ($484.9 mm), an 8.2% increase over last years AU$628.0 million ($367.2 mm). Net profit increased 14.2% to AU$87.0 million ($62.1 mm) compared to AU$ 76.2 million ($44.6 mm) posted last year. EPS climbed 13.6% to 42.7 Australian cents per share (30.5¢) compared to 38.1 Australian cents (22.3¢) last year.
In the U.S. market, sales revenue was up 7% in Australian dollars, or 30.1% in local currency, from $176 million last year to $229 million. EBITDA in local currency was $43 million, an increase of 33% on the prior year. EBITDA margins grew 40 basis points to 18.8%, up from 18.4%.
The Element brand “achieved success” across the U.S. with revenues up “in excess of” 50% in North America. The growth was experienced across the country, with athlete appeal a primary driver. The recently acquired Honolua Surf Company remained “on target” and according to management, made a mid single-digit contribution to US sales growth.
Mr. ONeill said that Billabongs established distribution strategy remained unchanged, with the sales growth primarily flowing from independent specialty retailers. Retail floorspace allocated to Billabong continued to increase in response to strong demand. Mr. ONeill also said that forward orders indicate that this performance is continuing into the current fiscal year. The company anticipates that, barring any unforeseen circumstances, both net profit after tax and EPS will grow in the vicinity of 20% in 2004/05.
