Billabong issues strong result

NATIONAL: Surfwear giant Billabong has issued a double-barrelled profit announcement, delivering a net profit after tax result of $176.4 million for fiscal 2008 and a brand acquisition to boot. The profit result, up from $167.25 million from fiscal 2007, was an improvement of 5.5 per cent in reported terms of 12.6 per cent when currency fluctuations are removed.

Group sales lifted 10.2 per cent in reported terms to $1.35 billion with the company's European arm recording the strongest growth in full year sales revenue.

CEO Derek O'Neill said it was "very pleasing" to deliver a net profit after tax growth of 18.5 per cent under any economic climate, let along the prevailing conditions.

He remained confident in the group's prospects for the 2009 financial year, with good growth evident in the early forward orders in the US and Europe and more moderate growth in Australasia.

"While there is understandable caution among retailers the world over, we remain confident that our multi-brand, multi-region business model will deliver healthy growth and our forward orders support this view."

The group has tentatively added another brand to its surf and skateware stable, announcing it had entered into an agreement to acquire Hawaii-based operator DaKine. The 20-year-old brand specialises in action sports accessories for the surf, skate, snow and windsurf markets.

It is anticipated the acquisition will be completed by October 1 2008, after the deal meets several legal and financial requirements.