Owners of iconic Australian brands including Bonds and Stubbies, Pacific Brands FY11 results showed flat sales for the past twelve months.
Total group sales were down by 7.3 per cent, with cash flow dropping 41 per cent and total net profits plummeting by $131.5 million, taking the group's full-year EBITA to $189.7 million – a less than five per cent increase on the previous year.
Pacific Brands CEO Sue Morphet said that the results were reasonable, considering the condition of the market.
“This credible operating result in a difficult market was driven by improved talent and capability, innovation, targeted marketing and continued cost control.”
The group's underwear and hoisery segments reported an 8 per cent decline in sales, influenced by the performance of its big name intimates brands, including Berlei, Hestia and Voodoo.
Hardest hit, was the footwear and sporting segment, with a dramatic 23.6 per cent drop in sales of footwear, outerwear and sports.
The group forecast a number of challenges in the road ahead for its brands, including: “weak retail conditions, marked by extremely cautious and value conscious consumers and intense industry competition,” concluding that its FY12 earnings were expected to continue to decline.