Pac Brands: a strong result

By Assia Benmedjdoub

21 Aug 2008

MELBOURNE: Australian retail and wholesale giant Pacific Brands has identified growing market share as the key goal for fiscal 2009, after posting a record full year result. The group traded through what it described as a "flat" and "challenging" year to issue a record $2.1 billion in revenue and $229 million of earnings before interest, tax and amortisation. Net operating cashflow increased 39 per cent to $157 million while net debt was reduced by seven per cent to $743 million.

Announcing the result yesterday (August 20) Pacific Brands CEO Sue Morphet said the company was not completely immune to the recent downturn however, with the women's footwear category "particularly sensitive" to the change in consumer sentiment.

"Against a backdrop of flat to negative economic outlook for retail for the first half [of the fiscal year] at least, we are focussed on ensuring the business is trading at peak performance and ready to capitalise on the eventual upturn in activity. Our focus during this period will be building market share." 

Morphet said the company had successfully integrated its latest apparel and footwear acquisitions, Globe International's streetwear division and the Yakka Group business, and both were performing to expectations.

"Acquiring and intergrating [the brands] has strengthened our resilience. Having increased the diversity of our product and customer base, we are better able to trade through the market conditions we are experiencing now. We are well placed to capitalise on the opportunities that will arise as conditions eventually improve."

Pacific Brands porfolio includes Bonds, Berlei, Holeproof, Slazenger and King Gee.