Strong Sales Rises Billabong Profit

Australian surf and snow wear producer Billabong International Ltd this week posted a 25 per cent jump in full year net profit from the year-ago period as it rode a strong sales wave at home and abroad.

The company reported a net profit for the year ended June 30 of A$76.3 million versus A$61m last year with total sales up 24 per cent year-on-year to A$622.9m thanks to solid growth at key US client Pacific Sunwear of California.

The Queensland-based firm said American sales surged 33 per cent to A$303m from 2002 while Australasia sales rose eight per cent to A$169m and European sales jumped 27 per cent to A$151m.

Billabong said in a news release it continues to see net profit growth for fiscal 2004 of 15 per cent with a double-digit increase in the first half and a stronger showing in the second six month period.

CEO Derek O'Neill said: "We have shown that not only have we continued to achieve growth rates almost unmatched in our industry, we remain as one of the most profitable branded businesses in the textile-retail area worldwide.

"Several weeks ago we indicated to the market that our expectations for 2003/04 were for 15 per cent profit growth, and I remain comfortable with this figure. Forward orders are healthy."