Billabong'S First Annual Earnings Performance In Four Years Is Gratifying.

After two years of rejuvenation efforts, Australian surfwear retailer BillabongInternationalLtd. (ASX:BBG) has finally regained growth in key US markets, and the European market has also turned a profit. These factors helped the group to record its first annual profit in the past four years in fiscal year 2015.

BillabongInternationalLtd. CEO

In the earnings report, it is pointed out that this report card has enhanced the confidence of the group in restoring its brand, but it is still full of challenges in the future. Therefore, the group will continue to promote the recovery plan from four aspects, namely, the whole channel, the customer concept, the procurement supply chain and the logistics distribution, so as to promote sustained long-term profit growth.

In the annual results released today, BillabongInternationalLtd. disclosure, which has been in the plight of over expansion for many years, achieved a net profit of 4 million 200 thousand Australian dollars after the fiscal year ended June 30th, and a huge loss of 233 million 600 thousand Australian dollars in the previous year.

Excluding some projects and non continuing operations, core earnings EBITDA rose 8.8% to 65 million 700 thousand Australian dollars annually, the first increase since 2008.

(ASX:BBG) shares rose 7.9% in intraday trading on Thursday, closing down to 2.38% and 0.645 Australian dollars.

Annual income reached 1 billion 48 million 400 thousand Australian dollars, an increase of 2.6% over the previous year, mainly due to the largest market growth in the Americas 8.1%, offset the 0.3% and 3.2% income decline in Asia Pacific and Europe respectively.

Fixed exchange rate, the three big market revenue declined year-on-year, while the same store sales grew only 2.9% in Europe.

And the Asia Pacific region decreased by 3.7% and 3.2% respectively.

According to the brand and fixed exchange rate, the growth rate of Billabong brand increased in the second half of the year, and the wholesale sales in the United States increased by 13.1% over the whole year.

California brand RVCA has also seen a 15.3% increase in wholesale sales in the second half of the year, with a 12.6% increase in global sales throughout the year.

Element brand continues to progress in its largest market in Europe.

NeilFiske said that the improvement of procurement supply chain and logistics distribution can ultimately achieve the goal of reducing the annual cost of 30 million Australian dollars. He expects to see results in the second half of fiscal 2016.