Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Fashion / Pacific Brands earnings in line with guidance & transformation on track
Pacific Brands earnings in line with guidance & transformation on track
Aug '09
Pacific Brands announced that the company had achieved solid operating earnings and cash flow in challenging market conditions during the 2009 financial year.

Pacific Brands Chief Executive Officer Sue Morphet said:“Earnings are in line with guidance and, importantly, the company is starting this financial year with a stronger balance sheet following its equity raising and debt refinancing completed in 2H09. “Reported earnings in F09 were impacted by a number of significant items not related to ongoing operations. The group booked non-cash asset impairment and write-down charges and incurred restructuring expenses associated with the implementation of the Pacific Brands 2010 strategy.

“In the past six months we have made good progress implementing our Pacific Brands 2010 strategy to transform and strengthen our business model. Our cost base is being restructured through overhead reductions and manufacturing closures, brands have been discontinued and stock-keeping units (SKUs) reduced. New skills and systems are being rolled out across the group. “In line with our strategy, this has allowed us to devote more resources to our key consumer brands such as Bonds, Berlei, Sheridan, Hard Yakka and King Gee. Despite seeing many markets that we participate in decline in the current economic climate, our key brands have experienced some growth, reinforcing our Pacific Brands 2010 strategy of focusing on our top performing brands.In addition, our B2B contract uniform business has had a successful year and has grown 6%, with new contracts and roll outs including the NSW Police Force and Compass Group in Europe. “Overall group sales contracted by $116.6 million as we divested businesses, discontinued brands and due to the general economic slowdown. Excluding divested businesses and discontinued brands, sales in the underlying business were down by approximately 1%.

“Earnings were impacted by volume declines and adverse mix changes as consumers traded down, and by an increase in raw materials and input costs, partially offset by price adjustments. Currency also had an impact on the company's profitability over the year with imported unit costs increasing sharply from the unprecedented currency volatility in F09. Our hedging program has delayed the impact by six to nine months, however, as anticipated, earnings were impacted in 4Q09.”

Segment results
Underwear and Hosiery sales were down 1.8% to $625.6 million and EBITA (before significant items) down 7.9% to $93.4 million. Hosiery, Bonds and Berlei grew but this was offset by declines in Clothing New Zealand and Holeproof. Outerwear and Sport sales were down 2.3% to $641.4 million and EBITA (before significant items) down 3.8% to $56.0 million. Streetwear (within outerwear) and sport segments were up, with workwear flat and unbranded down. Home Comfort sales were down 13.1% to $456.0 million and EBITA (before significant items) down 18.3% to$40.6 million. The tough housing and construction markets, consumer slowdown, and higher fixed cost structures in the manufacturing businesses all impacted profitability. Sheridan and Sleepmaker were adversely impacted by softer consumer demand and Tontine was the standout performer with sales up in all channels. Foams and Flooring grew market share in markets that were down.

Must ReadView All

AmCham Cambodia cautions US against possible sanctions

Apparel/Garments | On 22nd Sep 2018

AmCham Cambodia cautions US against possible sanctions

In a letter to US lawmakers, the American Chamber of Commerce...

Courtesy: ycloset

Apparel/Garments | On 22nd Sep 2018

Alibaba invests in clothes sharing platform Ycloset

Chinese garment sharing platform YCloset has completed an undisclosed ...

KG cracker; courtesy: Ineos

Textiles | On 22nd Sep 2018

Ineos to invest £60 mn in the UK to expand production

Ineos has announced plans to invest £60 million to expand its...

Interviews View All

Kaizad Hansotia, GetNatty

Kaizad Hansotia

Competition is the best thing that can happen to a startup

Karan Suratwala, Key Textile Accessories Private Limited

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Sachin Sharma, Gem Enviro Management Pvt Ltd

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Riddhi Jain,

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

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

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

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

September 2018

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

news category

Related Categories:

Advanced Search