Home / Knowledge / News / Results/Reports / Billabong H1 EBITDA totals Au$19.3 million
Billabong H1 EBITDA totals Au$19.3 million
Feb '18
Courtesy: Billabong
Courtesy: Billabong
Australia-based apparel marketer Billabong International has recorded Earnings Before Interest Taxation Depreciation and Amortisation (EBITDA) for the first half (H1) ending December 31, 2017, at Au$19.3 million, compared with Au$23.9 million the prior corresponding period, down 19.1 per cent as reported and 15.9 per cent in constant currency (cc).

There were significant revenue and cost shifts between H1 and H2 that contributed to the reduced H1 EBITDA. Americas continued positive performance with H1 EBITDA up 34.1 per cent cc (year-on-year) before global allocations. While, H1 EBITDA for Europe was down 29.4 per cent cc (y-o-y), before global allocations due to a wholesale revenue timing shift and weaker than expected retail results. Due to difficult market conditions, Asia-Pacific H1 EBITDA slipped down to 9.2 per cent cc (y-o-y).

Total revenues for the first half were Au$474.5 million, down 3.1 per cent as reported and 1.5 per cent cc. The company's gross margins increased to 52 per cent and were up in every region, marking continued progress in global sourcing and concept-to-customer initiatives. A net loss of Au $18.4 million was also recorded for the reported period.

"The result is reflective of the ongoing difficult trading conditions in retail and much of the action sports sector. While our Americas region has again produced another good result, with EBITDA up 34.1 per cent constant currency year-on-year, it is the smaller half year for that region. In contrast, trading proved challenging in Asia Pacific, where H1 is the larger half," said Billabong chief executive officer Neil Fiske.

“Our global change initiatives are delivering benefits through higher gross margins across all regions, up year-on-year from 51-52 per cent. However, systemic and structural changes in retail mean the conditions that affected the first half results are likely to prevail in the second half and beyond," added Fiske.

The company expects FY18 EBITDA (excluding significant items) to exceed the prior year, to be in a range between Au$51.1-$54 million, subject to reasonable trading conditions and currency markets remaining relatively stable. It hopes to have a significant bias of second half earnings to the Americas, with a high concentration of sales in the month of June.

"We have made substantial progress over the last four years, but we have had to confront tens of millions in adverse currency movements on our product costs, industry bankruptcies and account closures across multiple geographies, and fundamental channel shifts away from brick and mortar. The fact that a number of industry participants are currently undergoing a sales process is yet another indication of the tremendous disruption that we are witnessing. These changes are systemic, structural and set to continue," concluded Fiske. (RR)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 4th Dec 2020

India to position itself as global MMF, tech textiles hub

India is working on major interventions to position itself as a...

Pic: Shutterstock

Textiles | On 4th Dec 2020

US bans cotton imports from Chinese producer XPCC

The US Customs and Border Protection (CBP) agency recently banned...

Pic: Shutterstock

Apparel/Garments | On 4th Dec 2020

PVH Corp Q3 FY20: sales $2.11 bn; net income $70 mn

PVH Corp, a US-based global apparel companies, has reported 18 per...

Interviews View All

Yash Agarwal, Hitansh Online

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Textile Industry, Head honchos

Textile Industry
Head honchos

Increased need for online fitting solutions as retailers shift to...

Textile Industry, Head honchos

Textile Industry
Head honchos

Main challenges are breakdown of supply chain and shrinkage of manpower

DP Kumar,

DP Kumar

Weaves is South India's premier textile fair organised by Texvalley in...

Pietro Turrin,

Pietro Turrin

Industrie Tessili Bresciane (ITB) has served numerous industries and...

Harsh Shah,

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Pierre Wiertz, EDANA

Pierre Wiertz

EDANA, the international association serving the nonwovens and related...

Alfonso Marra, Klopman

Alfonso Marra

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

December 2020

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

Advanced Search