Billabong International has raised its profit guidance for the fiscal year ended June 30, 2005. The company now expects profit growth to reach 30% for the current year, up 50% from its initial estimate of 20% growth, saying it was “unduly conservative”. For the 2004 fiscal year, Billabong saw net profit of A$87 million ($62 mm), or A43 cents per share (30.5¢), on full-year worldwide sales of A$675 million ($485 mm).
The company also reported that it had acquired a six-store retail chain in Southern California, which operate under the Beach Access banner, for an undisclosed sum. The stores will be operated through Honolua Surf Company, but will keep their current name. The increased guidance is also undoubtedly due to the recent announced acquisition of Palmers Surf Company, which includes the Kustom surf shoes brand.
Over the last five years, Billabong is boasting a 31% compound annual growth rate in sales and a 40% compound annual growth rate in EBITDA.
