Globe International Limited, an Australian maker of apparel, footwear and skateboards, reported net sales for the year slipped 6 percent to $AUD82.3 million ($85mm), mainly due to the strengthening of the Australian dollar. In constant currency terms, net sales for the group were approximately flat on the previous year, despite the continued challenges in global economies and retail sectors.
The Group generated $1.7AUD million of earnings before interest, tax, depreciation and amortization (EBITDA) which, as previously reported, includes net $AUD1.0 million in other income relating to proceeds from the settlement of a legal case, compared to an EBITDA profit of $2.9 million in the previous financial year. Reduced gross margins, which are largely responsible for this decline in profitability, resulted from a combination of sales mix, competitive market pressures and an increase in cost of goods.
On June 30 2012, the Group had available cash reserves of $10.2 million (June 2011: $12.3 million), and available financing facilities of $3.0 million (June 2011: $2.7 million). With positive cash generated from operations in the financial year, the utilization of cash during the year was principally a result of the $2.1m dividend paid on 30 September 2011
.
“Given difficult market conditions around the world, and specific challenges our industry faces, we are pleased that our company remains stable and debt free and that we are able to continue to invest in our brands and growth programs despite modest expectations for financial performance in the next twelve months”, said Hill.