Billabong Sees Double-Digit Growth in All Regions

Billabong
International Limited ended its fiscal year with double-digit growth up
and down the P&L as sales grew in the mid-20s on strong
performances in all regions that led to a mid-teens bottom line gain.

Sales
revenue climbed 24.1% in constant currency terms (20.1% in reported
terms) to A$1.23 billion ($963.9 mm) from A$1.02 billion ($765.4 mm)
last year, driven by strong growth in Europe and good growth in the
Americas and Australasia. In constant currency terms, sales in the
Americas grew 22.3%, Europe lifted 32.2% and Australasia was up 21.5%.

In
Australasia, sales increased 19.8% to A$353.6 million ($277.9 mm) from
A$295.2 million ($220.7 mm) last year. EBITDA in the region slipped
1.8% to A$93.2 million ($73.3 mm) from A$94.9 million ($71.0 mm) last
year. Sales revenues in local currencies were particularly strong with
Japan increasing in excess of 25% and New Zealand increasing by over
130%, principally driven by the acquisition of the Amazon retail store
chain in New Zealand.

In
the Americas, sales jumped 15.8% to A$604.5 million ($475.1 mm) from
A$521.9 million ($390.3 mm) in fiscal 2006. EBITDA for the region
increased 12.3% to A$111.9 million ($88.0 mm) from A$99.7 million
($74.5 mm) in the previous fiscal year. The company said its EBITDA
margin decreased slightly for the year due to reduced business with
Pacific Sunwear. Though Billabong brand business grew with PSUN,
Element declined. Canada and owned operations in South America grew
strongly, posting local currency sales revenue increases over the prior
year of 44% and 37%, respectively.

Europe
led all regions in both top and bottom line growth as sales jumped
31.6% to A$264.7 million ($208.0 mm), while EBITDA increased 42.1% to
A$50.3 million ($39.5 mm). Spain, Italy and Germany all recorded
“strong double-digit growth.”

Net
profit jumped 14.6% to A$167.2 million ($131.4 mm) for fiscal 2007, or
19.2% in constant currency terms. Earnings per share growth of 19.2% in
constant currency terms (14.7% in reported terms) was slightly higher
than previous market guidance.

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