Globe International Limited saw total revenues for the fiscal year ending June 30 decrease 3.5% to A$197.3 million ($149.2 mm) from A$204.5 million ($153.2 mm) last year.
Sales were down in each of the companys three regions, with North America taking the brunt of the decrease, down 7.4% to A$59.4 million ($44.9 mm) from A$64.1 million ($48.0 mm) last year. Management attributed the difficulties in the region to a “poor first quarter.” Operating profit for the region fell from a gain of A$1.6 million ($1.2 mm) last year to an operating loss of A$904,000 ($684,000).
In Australasia, sales decreased 0.8% to A$109.9 million ($83.1 mm) from A$110.9 million ($83.0 mm) last year. The region managed to stay in the black for the year with an operating profit of A$2.7 million ($2.0 mm), but that result represents a 46.7% drop from last years A$5.0 million ($3.8 mm). For the Rest of the World, sales fell 8.0% to A$28.0 million ($21.2 mm) from A$30.5 million ($22.8 mm). The region posted an operating loss for the year of A$355,000 ($268,000), an expansion of last years loss of A$251,000 ($188,000).
The company as a whole saw its sales decrease wreak havoc on the bottom line, with EBITDA decreasing 42.6% to A$6.2 million ($4.7 mm) for the year from A$10.8 million ($8.1 mm) last year. Net profit fell 86.9% to A$471,000 ($356,000) from A$3.6 million ($2.7 mm) one year ago. Earnings per share reflected the net profit slump at 11 cents per share (8 cents), down from 86 cents (64 cents) in 2005.
Earlier this year, the company tapped the Sage Group to review the business and brand assets as part of the companys long-term strategy to improve efficiency and performance. Since then, Sage has been in discussions with “a number of external parties” regarding a range of options with recommendations expected to be put before the companys directors in the near future.