Billabong Sees H2 Keep Momentum Alive in Posting Solid Fiscal Year Results…

Billabong International Limited followed a tremendous first half with a 19.2% rise in net profit after tax to AU$55.3 million (US$42.8 million) for the fiscal second half ended June 30, 2005. Sales revenue as reported in Australian dollars lifted 14.9% on the prior year to AU$424.5 million (US$328.4 million). Earnings per share grew 18.1% to 27 cents (US$0.21).

Sales revenues in the Americas lifted 17.2% to US$168.9 million, or 12.2% higher in Australian dollars, up from US$144.5 million with a significant margin improvement. EBITDA rose 28.1%, or 22.6% in AUD terms, to US$40.2 million from US$31.4 million.

Australasian sales lifted 43.1% to AU$114.9 million (US$88.9 million) from $89.3 million (US$66.1 million) previously. EBITDA of AU$18.7 million (US$14.5 million) was down 5.6% from the prior year.

European revenues lifted 5.9% in Euro terms, or 6.7% in Australian dollars, to €53.7 million (US$70.5 million) and EBITDA rose 16.1%, or 19.6% in AUD, to €10.1 million (US$13.2 million).

In other Billabong Europe news, European general manager Peter Casey will be returning to Australia in January to take up the new position of global operations manager. Franco Fogliato will be promoted from the position of deputy general manager to European general manager.

Key brands Element and Von Zipper, posted strong years with global sales growing 46% and 30%, respectively. The Kustom and Palmers Surf brands, which were acquired during the year, and the Honolua Surf Company brand were all said to be doing “well.”

Billabong continues to expand its retail presence, opening 15 company-owned stores during the year, bringing the total number to 64. The stores operate under four branded concepts – Billabong, Honolua Surf Company, Beachworks, and Element.

In looking forward, the company is forecasting 15% EPS growth for the 2005-06 financial year.