Billabong emerges from a strong fiscal year
Refocusing on Billabong, Element and Rvca, the Billabong group found the way back to profitability. During the 2014-15 fiscal year, the group continued its restructuring activities, striving to implement its global strategy. It has also sold Surfstitch and Swell, and it now seems to be reaping the first financial fruits. Its revenues grew 2.6%, reaching AUS $ 1.048 billion (€ 716 million), compared to the same period last year. At constant exchange rates, the group nevertheless recorded a sales decline of nearly 1%. America and Asia-Pacific were stable but Europe shrunk by 2%.
Applying current exchange rates means however an 8.1% rise in the Americas, reaching AUS $ 452 million (€ 309 million), with comparable rates of growth for Billabong and Rvca, respectively 13.1% and 11.5%. This regional performance is juxtaposed to relative stability in Canada and Latin America.
Stability is the byword in Asia-Pacific, at AUS $ 419 million (€ 286 million), with like for like sales disappointing and the closure of about twenty stores regarded as under-performing.
There is a 3% downturn in Europe, at AUS $ 178 million (€ 122 million). The group explains how it focused on its most dynamic clients, claiming a 2.9% growth in like for like sales.
But, barring extraordinary circumstances, the group saw its pre-tax result turn positive again. After a loss of nearly AUS $ 27 million (over € 18 million) a year ago, it jumped to a 4.5 million profit (over € 3 million).
The group's EBITDA went from AUS $ 60.3 to 65.7 million (from € 41.2 to 44.9 million). Last year Europe was in the red by AUS $ 1.1 million (€ 750,000), but this time it yielded 5.6 million (€ 3.8 million). The strongest contributor remains Asia-Pacific with AUS $ 29.4 million (€ 20.1 million), followed by the Americas with 27.2 million (€ 18.6 million).
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