Billabong International Limited today reported a 14% rise in net profit after tax to $87 million for the year to
June 30, 2004. The result was struck on reported Australian dollar sales of $675 million, an 8% increase on the prior year. Sales growth in local currencies was 21%, demonstrating the strength of the underlying business.
The company has lifted its full-year dividend to 26.5 cents a share fully franked, up from 23.5 cents a share
in the previous year.
Billabong chief executive Derek ONeill said the result was outstanding.
US sales were up 7% as reported in Australian dollars, but in local currency they were up 30%. The
Australasian region also experienced buoyant trading with sales up 14%, while European sales were up 5%
in Australian dollars and 13% in local currencies.
Group EBITDA margins lifted to 21.4% from 20.1% and earnings per share lifted 13% to 43 cents.
“This is an extremely strong result with increases in key indicators across the board,” said Mr ONeill.
“The US and Australasian regions were outstanding and recorded strong sales at increased margins, while
Europe had double-digit sales growth in local currencies with Italy and Germany the standout territories.”
Among the brands, Billabong, Element, Von Zipper each experienced strong trading in all key regions.
Element revenues globally grew 69% and the brand now accounts for 12% of group sales as reported in
Mr ONeill said the outlook for Billabong remained very positive. “Our forward orders indicate that the buoyant trading experienced in the 2004 year is continuing and that
gives us confidence in our outlook for the current year.
Considering the current level of the Australian dollar and barring any unforeseen circumstances we would
expect net profit after tax and earnings per share to rise in the vicinity of 20% in the 2004/05 financial year.”