Billabong International Limited announced a 73% rise in net profit after tax for the first six months of the 2004-05 financial year. Net profit after tax was A$70 million, up from A$41 million in the prior corresponding period.
Group sales revenue rose 37% to A$419 million, up from A$305 million previously, while earnings per share lifted 70% to 34 cents per share.
Billabongs chief executive officer, Derek ONeill, said the result reflected a very strong retail environment in several key markets.
“It has certainly been an exceptional six months at a retail level, particularly in the companys leading markets of Australia and the US, and this was boosted by consistent customer demand for Billabongs product lines,” Mr ONeill said.
Mr ONeill said all of the groups brands made a positive contribution to the result.
“Billabong continues to build on its global presence, Element again experienced exceptional growth and Von Zipper achieved increased market penetration and awareness,” he said. “Honolua Surf Company is building nicely and Palmers Surf and the associated Kustom footwear brand have been integrated into the business and offer exciting growth prospects.”
At a regional level, sales in Australasia lifted 56% to A$161 million and EBITDA grew 86% to A$59 million. In the Americas, sales grew 46% (37% in Australian dollars) to US$128 million, while in Europe sales lifted 11% (13% in Australian dollars) to 47 million.
Mr ONeill said the exceptional growth in the Australian market boosted the groups first-half sales beyond historically established levels. “A repeat of these exceptional growth levels is not expected in the second half, which is traditionally weighted to the northern hemisphere summer,” Mr ONeill said.
“However, given the general strength of the business and the growth expected from the current order book, the company has the confidence to upgrade its full-year guidance from the previously advised 30%.
“In the absence of any unforeseen circumstances, Billabong now anticipates the full-year growth in net profit after tax and EPS will be in the range of 40%.”
