Sales were up for Billabong International in the six months to December 31, 2010, despite “a very weak summer” in Australia.
The publicly listed company revealed group sales revenue for the first half of 2010/11 amounted to $834.9 million in reported Australian dollar terms. This was up 15.8 per cent on the prior corresponding period.
Net profit after tax for the six months to December 31, 2010 was $57.2 million in reported Australian dollar terms, a drop of 18 per cent on the first half of 2009/10.
By region, the Americas experienced a 28.6 per cent jump in sales revenue to $408.4 million; Europe a rise of 4.1 per cent to $157.2 million; and the Australasian segment a rise of 12.4 per cent to $269.3 million.
Billabong CEO Derek O'Neill said the increase in sales revenue reflected “the execution of various strategic moves to enhance the route to market for the Group's compelling brand portfolio”. These included the acquisition of retail banners West 49, Surf Dive 'n' Ski, Jetty Surf and Rush Surf, which boosted company owned store numbers by 255 stores in the six months to December 31, 2010.
“Collectively, company owned retail represented approximately 40 per cent of group sales revenues for the half year ended 31 December 2010,” O'Neill said.
With respect to Australasia, O'Neill said sales revenue had lifted strongly in Asia and Japan.
“However, the performance of the underlying Australian business weighed on the region. A very weak summer and hi-summer indent, combined with cool, wet summer weather along Australia's east coast, including major rainfall in Queensland in particular, led to soft sales at company owned retail and lower repeat business within the wholesale account base,” O'Neill said.
Looking ahead, O'Neill said group sales revenue for the full 2010/11 financial year is expected to total approximately $1.7 billion at current exchange rates. The company expects net profit after tax for the full year to be flat in constant currency terms.
Billabong International's brands includes Element, Von Zipper, Kustom, Palmers, Tigerlily, Dakine, RVCA and Billabong.