Globe turns around

MELBOURNE: Globe International has posted a substantial profit hike in the six months ended December 31, 2007.

The boardsport, footwear and apparel giant - which has (Melbourne headquartered) offices in Australia, the US, UK and Europe - posted Net Profit After Tax (NPAT) up $4.8 million, reflecting NPAT of $0.3 million for the December 31 half year, compared to a loss of $4.5 million for the previous corresponding period.

Total revenue for the continuing business grew despite being negatively impacted by the translation of US revenue into Australian dollars following the weakening US currency.

Total revenue increased for the half by 2.8 per cent over the previous corresponding period to $63.5 million. Excluding the impact of changes in foreign currency, group net sales grew by over 10 per cent compared to the same period last year.

Globe CEO Matt Hill said Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) of $1.1 million were to be compared to the previous corresponding period loss of $1.0 million. This was after accounting for legal expenses of $1.8 million associated with a disputed trade marke issue in the UK during the December 31, 2007 half.

The company's turnaround could be attributed to renewed focus on its core strengths, he said.

"Our first half is ahead of the same period last year and key categories such as footwear, hardgoods and apparel all displayed solid growth. However, given emerging concerns regarding the state of the US economy with a potential weaking in consumer demand, we will continue to manage the business prudently and be prepared to rapidly adapt to any changed market conditions."

"We anticipate that skate hardgoods growth will be ongoing and that the recent gains we have experienced in apparel and new footwear ranges will also continue."