Billabong surfs the waves

GOLD COAST: Billabong has announced a net profit after tax (NPAT) of $88.7 million for the six months to December 31 2007.

Billabong International CEO Derek O'Neill said underlying NPAT growth was 13.1 per cent in constant currency terms, after excluding $6.3 million in one-off tax benefits in the previous year period.

With the previous year's one-off tax benefits included, NPAT was up 4.7 per cent in constant currency terms, or down 2.0 per cent in reported Australian dollars, reflecting the significant appreciation in the Australian dollar, particularly against the US dollar.

Group sales for the period rose 15.8 per cent in constant currency terms (up 8.4 per cent in reported Australian dollars) to $662.0 million, with all key regions showing double-digit revenue growth in constant currency terms.

The Australasian region had sales growth of 16.8 per cent in constant currency terms, or 15.3 per cent in reported Australian dollars, to $231.0 million. The higher growth reflects the first-time inclusion of sales form South Africa, a region that was converted from a licensed to a wholly-owned operation at the start of the half year period.

Group EBITDA (earnings before interest, taxes, depreciation and amortisation) of $147.3 million was up 12.5 per cent in constant currency terms, or 6.2 per cent in reported Australian dollars.

O'Neill said despite the US market slowdown sales continued to be resilient.

"The underlying business remains very healthy, leaving the company well positioned to deliver another strong full-year performance."