Globe International reported that cost reduction and restructuring initiatives undertaken over the past twelve months led to improved results for the second half of the fiscal year, but overall year-end results were still below year-ago results due to weakness in all regions.


The Abbotsford, Australia-based apparel and boardsports company reported that revenues were down 3.9% to A$117.6 million ($88 mm) for the fiscal year ended June 30.  In constant-currency terms net sales were down 14% versus the prior year, as Globe felt the impact of the global economic downturn in all regions. Net sales fell 20% in North America in local currencies, declined 7% in Europe, and decreased 4.4% in Australasia (after adjusting for retail store closures).


The company posted a $500,000 (A$691,000) EBITDA loss for the year in its North America operations, compared to profits of about $5 million (A$5.6 mm) in the prior year.  The loss in Europe also expanded to A$1.5 million ($1.1 mm) for the period.


Also contributing to the overall loss was $3.2 million of one-off restructuring costs and the derecognition of $4.7 million of tax assets associated with carry forward tax losses.  The rationalization of the cost base is expected to results in over A$15 million being cut from the operating costs annually.


The total Net Profit after Tax for the financial year was a loss of A$8.9 million ($6.6 mm), with a first half loss of A$9.3 million being followed by a second half profit of A$0.4 million. 


“It is difficult to predict when a recovery will take effect,” offered CEO Matt Hill.  He said they maintain conservative expectations but now feel better positioned to deal with the tougher trading conditions.