Billabong reported revenues from continuing operations reach AUD $1.69 billion ($1.65 bb) in the year ended June 30, 2010, up 13.5 percent from the prior year. Profit from ordinary activities after tax fell 18.4 percent to AUD $119 million ($116 mm).




In the Americas, sales revenue increased 18.4 percent to AUD $843.7 million ($825 mm), up from AUD $712.6 million in fiscal 2010 principally as a result of the acquisition of West 49 in Canada. EBITDA decreased 13.1 percent to $80.2 million ($78 mm), down from $92.3 million. EBITDA margins were lower at 9.5 percent compared with 13.0 percent in the prior fiscal year, principally reflecting the anticipated initial dilutive impact of the recent acquisition of West 49, one-off M&A and restructuring costs (AUD $4.6 million) and the above mentioned impact of the allocation of global overhead costs. Excluding the allocation of global overhead costs, EBITDA margins were 13.4 percent compared with 16.0 percent in fiscal 2010.
 
On a consolidated basis, Net Profit After Tax (NPAT) for the year ended 30 June 2011 was AUD $119.1 million, a decrease of 6.9 percent in constant currency terms (a decrease of 18.4 percent in reported terms) compared to fiscal 2010.

Reported NPAT was significantly adversely impacted by the unfavourable effect of the appreciation of the AUD, in particular against the Euro and the USD relative to fiscla 2010.


Group sales revenue of AUD $1.68 billion, excluding third party royalties, represents a 23.8 percent increase in constant currency terms (up 13.6 percent in reported terms). At a segment level, in constant currency terms, sales revenue in the Americas increased 32.5 percent, Europe increased 11.5 percent and Australasia increased 19.5 percent over fiscal 2010.
 
Consolidated gross margins remained strong at 53.8 percent, down 80 basis points from fiscal 2010.


EBITDA of AUD $191.9 million represents a decrease of 16.2 percent in constant currency terms (a decrease of 24.3 percent in reported terms ) compared to fiscal 2010. The consolidated EBITDA margin of 11.4 percent decreased by 5.7 percent compared to that of last year of 17.1 percent, principally reflecting:


 


  • the impact of a very weak retail environment in Australia; 
  • the impact of a number of natural disasters in key territories including floods in Queensland, earthquakes in New Zealand and the earthquake and subsequent tsunami in Japan; 
  • lower gross margins in Europe, which were adversely impacted by considerably lower product purchase hedge rates in the second half for the summer 2011 season compared a year earlier;
  • as anticipated, the initial combined dilutive impact on margins of the recent acquisitions of retailers West 49 in Canada and Surf Dive ‘n’ Ski (SDS)/Jetty Surf and Rush Surf, both in Australia. These margins are expected to increase as the Group’s strategy to lift Billabong family brand share is realised over time. Excluding these acquisitions, EBITDA margins would have been 13.1 percent, down from 17.1 percent in fiscal 2010; 
  • the unfavourable regional mix impact of the appreciation of the AUD against the USD and the Euro relative to fiscal 2010; 
  • one-off acquisition related costs (M&A) and restructuring costs of AUD $12.3 million; and 
  • an increase in global overhead costs (which include corporate overhead, international advertising and promotion costs, central sourcing costs and foreign exchange movements) of AUD $19.1 million to AUD $64.8 million compared to AUD $45.7 million in fiscal 2010. This increase is primarily attributable to costs associated with the roll-over and extension of the Syndicated Debt Facility, timing of advertising and promotion expenditure due to the Teahupoo Tahiti WCT event falling in August 2010 and foreign exchange losses.