Billabong International Ltd. said first-half net profit fell 18% to 57.2 million Australian dollars
(US$57.9 million), in part due to the strength of Australian dollar
against the U.S. dollar and euro.
In constant-currency terms, the group's net profit fell 10% to A$57.2
million from A$63.4 million a year ago. The retailer had already warned
in December that first-half net profit would fall 8% to 13% below the
prior year in constant-currency terms so the news wasn't a surprise to
investors.
Total revenue for the half year rose 16% to A$834.9 million from A$721 million.
Revenue growth in the first half was driven in part by last year;s acquisition of Canadian retailer West 49 Inc., which helped boost North American sales 38 percent, the Gold Coast, Australia-based company said today in an earnings presentation.
The company will pay an interim dividend of 16 cents, down from 18 cents a year earlier.
The Australian dollar gained against its U.S. counterpart during the fiscal half year, reaching a record on Dec. 31 and crimping North American earnings. Without the currency impact, profit would have been A$6 million higher, Billabong said.
Full-year earnings will be 'flat' in constant currency terms and may fall about 10 percent in reported terms based on current trading and exchange rates, Billabong said. The company had 2010 net income of A$146 million.
Earnings before interest, tax, depreciation and amortization in the Americas, the company's biggest market by sales, fell 14 percent to A$29.1 million.
Earnings at the Australasian division, which includes Australia, New Zealand and Asia, fell 32 percent to A$40.3 million. European earnings dropped 17 percent to A$24.1 million.
