Billabong International Limited reported a 44.1% rise in net profit after tax to $125.4 million (US$94.5 million) for the fiscal year ended June 30, 2005. Sales revenue as reported in Australian dollars lifted 25.0% on the prior year to $843.6 million. Earnings per share grew 41.9% to 61.0 cents per share, while the second half dividend of
20.5 cents per share takes the full-year payout to 38.0 cents per share fully franked, or 43.4% higher than the prior year.

Billabong International chief executive officer, Derek O’Neill, said the result was built on an exceptional first half, with particularly strong contributions from the company’s US and Australian businesses and continued improvements in Europe.

“It was an exceptional year at retail level and, while the second half was more subdued than the exuberant first half, Billabong maintained strong momentum through to the end of the year,” said Mr O’Neill.

“Overall, it was a year in which Billabong’s established brands maintained strong growth and the company’s emerging brands achieved further market penetration.”

Sales revenue in the Americas lifted 28.7% to US$293.9 million, or 21.9% higher in Australian dollars, with a significant margin improvement.

Australasian sales lifted 43.1% to $275.7 million, with the result buoyed by the exceptionally strong retail environment that characterised the first half in Australia.

European revenue lifted 8.0% in Euro terms, or 9.4% in Australian dollars, with sales passing €100 million for the first time.

Mr O’Neill said all of the group’s brands performed strongly, with the surf-inspired Billabong brand maintaining its place as one of the world’s premier youth lifestyle brands.

“The skateboard-influenced Element apparel and hardgoods brand again showed outstanding growth globally and the Von Zipper eyewear and apparel brand grew strongly, particularly in the US and Australia,” he said.

“Of our newer brands, the Honolua Surf Company wholesale range and the Kustom footwear brand are now being rolled out globally, while Palmers Surf continues to hold a leading position in the surf wax market.”

Mr O’Neill said the solid performance in the 2004-05 financial year maintained Billabong International Limited’s position as one of Australia’s premier global businesses.

“Since Billabong publicly listed in August 2000 it has delivered total shareholder returns of 47.7% per annum and annual compound EPS growth of 30.2%,” said Mr O’Neill.
“It is a record of which the company and its staff are proud.

“While retail conditions in Australia softened in the second half, Billabong’s global reach and multi-brand strategy allows it to absorb region-specific economic fluctuations and retail cycles and still deliver solid growth.

“With this in mind and, in the absence of any unforeseen exceptional circumstances, the company is returning to its target of 15% EPS growth for the 2005-06 financial year.