Home / Knowledge / News / Fashion / Pacific Brands delivers profitable growth
Pacific Brands delivers profitable growth
01
Sep '08
Reliable and innovative business delivers guidance in a challenging environment Commenting on the results Pacific Brands Chief Executive Officer Sue Morphet said “Pacific Brands delivered on its full-year growth guidance, including the first full year of acquired businesses, reaching a record $2.1billion in revenue and $229m of earnings before interest, tax and amortisation.

This performance has been achieved during currently challenging trading conditions and demonstrates the resilience of the Pacific Brands business.

Strong and reliable cash flow remained another feature of the Pacific Brands result. Net Operating Cashflow increased 39% to $157m. Net debt was reduced by 7% to $743m, with gearing of 2.9 times now back to around its level before the Yakka Group acquisition.

“Despite economic conditions, we remained focussed on core brands and delivered profitable growth.“We have successfully integrated Globe International's Streetwear division (Brand Collective) and the Yakka Group business into Pacific Brands. Both are performing to expectations.

“The entire Pacific Brands business grew sales by 16.3% in the year and EBITA by 18.1%. “Our performance has been driven by our ability to continually deliver highly desired products to our retailers and consumers.

Our ongoing product innovation and marketing capability has ensured that we continue to maintain category leadership. Category leadership means we are the anchor supplier in key categories for Australia's major retailers.

“Despite its stable of strong brands, Pacific Brands has not been completely immune to the recent downturn. We have found the top-end manchester market and women's fashion footwear to be particularly sensitive to the change in consumer sentiment.

“The strength of the Pacific Brands sourcing and distribution capability allowed us to successfully navigate changing market conditions.

Inventory turn improved and total capital employed reduced by $41m without affecting our high delivery standards and improving our return on average capital employed by 0.6 percentage points.” Ms. Morphet continued.

The Board has decided to declare a final dividend of 8.5 cents per share, providing shareholders with a full year 17.0 cents per share dividend.”

FY09 and beyond “Economic commentators generally predict flat to negative retail sales for the remainder of calendar 2008, with recovery emerging in 2009.

Consistent with our second half, we are well positioned for the down-turn delivering the staple brands of choice for customers and consumers. Our focus during this period will be on growing market share.

Based on the economic outlook, we expect FY09 like for like sales growth of 2-3% EBITA, NPAT and EPS growth of 3-5%, while maintaining strong cashflow.

We will achieve this through tight control of expenses, targeted and tailored marketing investment and ensuring an inventory balance consistent with sales.


Must ReadView All

Indian textile & apparel exports fall 13% in Jan 2018

Textiles | On 17th Feb 2018

Indian textile & apparel exports fall 13% in Jan 2018

A decline of 13 per cent year-on-year has been observed in the...

Brazilian cotton prices move up in first fortnight

Textiles | On 17th Feb 2018

Brazilian cotton prices move up in first fortnight

Cotton prices rose in Brazil in the first fortnight of February, as...

Courtesy: OrganoClick

Textiles | On 17th Feb 2018

OrganoClick introduces OrganoTex for water repellency

OrganoClick has introduced OrganoTex, a textile impregnation product...

Interviews View All

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search