Billabong International posts 15% profit hike in H1

20 Feb '06

3 min read

Extreme sports clothing makers Billabong International Limited (BBG) has posted a 15% profit increase in the first-half of the year boosted by strong US sales.

Profit after tax for the half-year ended 31st December 2005 was $79.5 million, an increase of 14.7 percent over the 2004-05 year (the prior year), demonstrating continued solid growth by the Billabong Group.

Sales revenue of $484.3 million, excluding third party royalties, represented an increase of 16.0 percent over the prior year, or 18.5 percent in constant currency. At a segment level, in AUD terms, sales revenue in Australasia increased 10.1 percent, the Americas increased 24.5 percent and Europe increased 9.3 percent over the prior year.

Consolidated gross margins at 53.8 percent were stronger than the prior year's 52.5 percent. EBITDA increased 15.4 percent to $124.6 million or 16.8 percent in constant currency. Both the Americas and Europe segments were highlights, with EBITDA growth, year on year in local currencies, increasing 28.4 percent and 34.1 percent respectively.

The consolidated EBITDA margin of 25.7 percent was in line with that for the prior year of 25.9 percent.

Compared with the prior year, Australasian sales revenue was up 10.1 percent to $177.1 million and EBITDA of $61.9 million was 5.0 percent higher. EBITDA margins were slightly lower at 34.9 percent compared to 36.7 percent in the prior year.

Challenging Australian retail conditions havecontributed to this more subdued result compared to the same prior year period when Australia recorded exceptional growth for both sales revenue and EBITDA.

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