NATIONAL: Billabong International's profit fell 15.4 per cent in the first half of 2009/10, reflecting in part the impact of recent foreign exchange movements.
The surfwear retailer and wholesaler posted a net profit after tax (NPAT) of $69.7 million for the six months to December 31 2009. This was down from $84.5 million in the previous corresponding period.
Reported group sales were $721 million, down 2.8 per cent in constant currency terms or down 10.8 per cent in reported terms compared to the first half of 2008/09. In constant currency terms, sales increased 2.6 per cent in Europe while sales were down 1.4 per cent in Australasia and down 6.2 per cent in the Americas.
Billabong International's CEO Derek O'Neill said the result was in line with the company's guidance.
“The company continues to perform to expectation in a difficult global retail environment,” O'Neill said.
“In North America there were some signs of improvement in the company's own retail operations, but business remained relatively challenging at the wholesale account level,” he said.
O'Neill also explained that the company had been “significantly adversely impacted” by foreign exchange movements. The strengthening of the Australian dollar against the US dollar and Euro had particularly impacted on the translation of reported results, he said.
The company reaffirmed its previously advised full year guidance of 5 per cent NPAT growth on the prior corresponding period in constant currency terms, excluding the prior period's impairment charge.