Globe International Limited saw fiscal 2007 net sales decrease 18.8% to A$158.1 million ($124.3 mm) from A$194.7 million ($145.6 mm) last year as a result of the company's selling of its World Industries and Streetwear businesses. Sales for continuing operations increased 0.7% to A$122.5 million ($96.3 mm) from A$121.6 million ($90.9 mm) last year. When adjusted for currency, and on a like for like basis, sales growth for was up 8.9% over last year with North America being the standout.
EBITDA for continuing operations was $5.2 million ($4.1 mm) after a loss of A$1.7 million ($1.3 mm) last year. Including the divested Streetwear and World Industries businesses, EBITDA was a A$6.9 million ($5.4 mm), up 11.3% from A$6.2 million ($4.6 mm) last year.
The company posted a net loss of A$3.1 million ($2.4 mm) for fiscal 2007 including the sold off businesses, after a net profit of A$1.0 million ($0.7 mm). Net income for going forward operations was A$2.0 million ($1.6 mm) after a loss of A$3.4 million ($2.5 mm) in the previous fiscal year.
During the year, a number of significant events took place including the sale of the World Industries brand and Streetwear together with a subsequent $32m capital return to shareholders concurrent with the consolidation of shares in the company on a 1:10 basis.
The Chief Executive Officer of Globe, Matt Hill, said that the continuing business, following the sale of the Streetwear Division earlier this year, traded profitably and demonstrated solid growth, particularly in the North American market.
Matt Hill said “Financially the company is in a sound position with a strong and clean balance sheet with over $20m in cash and very low debt.
“The growth we have experienced in world wide sales, and the profitability in the continuing business, is as a result of the brand and infrastructure investments that have occurred over the last two years. Accordingly, we fully expect sales and EBITDA growth to continue throughout the current financial year.”
Regional Highlights
“These are good company wide results, particularly in North America where sales growth of 13.5% in local currency, excluding revenues from discontinued brands, was achieved as a result of an increase in footwear unit sales of 11.7% and skateboard unit sales of 20%,” Matt Hill said.
In Australia and New Zealand, sales excluding operations and brands discontinued in 2007, have resulted in an 8.2% increase in revenue and an increase of 10.6% in footwear units sold.
“An important part of our growth will come from our apparel offering which is continuing to grow, particularly in Europe where it is now a significant contributor to that region's top line and profit result, resulting in a 4.7% improvement in sales revenue in local currency.”
Summary
“These results indicate the benefits of pursuing growth through being strongly focused on Globe and our iconic skate brands,” Matt Hill said. “Marketing initiatives such as world leading skate and surf events, highly successful video productions, and having some of the best skaters and surfers in the world on our teams have all contributed positively to this outcome.
“Globe today is a lot more than just the old business less Streetwear. Within the continuing business is a renewed culture and urgency together with a strong momentum and we are clearly focused on delivering the value that our shareholders know is inherent in the company and in our brands.
