Billabong on track to meet forecasts

Industry Updates

Billabong on track to meet forecasts

Surfersvillage Global Surf News, 24 October, 2012 : - - Billabong has reaffirmed its earnings guidance, despite difficult trading conditions. Chairman Ted Kunkel told shareholders at Billabong's annual general meeting on Wednesday that it was on track to deliver earnings before interest, tax, depreciation and amortisation (EBITDA) of $100 million-$110 million.

He described the 2011/12 financial year, when it suffered at $275.6 million net loss, as the most tumultuous in the company's history and tried to reassure shareholders that the major current restructure would help turn things around. Mr Kunkel, who was to step down from his post at the end of the meting, said debt levels had fallen, Billabong's balance sheet was stronger and first quarter results were in-line with forecasts.

"While trading conditions generally remain challenging, we are seeing some more encouraging signs in key markets, such as Australia and New Zealand, where the restructuring initiatives undertaken over the past 12 to 18 months are now beginning to yield results. In addition, early indications are for a better summer compared to the wet, cold summer in the prior year."

Mr Kunkel said it appeared trading conditions had stabilised in the United States, while in Canada they remained subdued. Europe remained a company concern, with trading conditions in the south particularly difficult. Billabong's retail stores were beginning to perform better, following the closure of underperforming outlets.

Chief executive Launa Inman updated shareholders on the progress of the company's restructure. She said she would have a report on ways to improve Billabong's global IT infrastructure systems by December, which will help lead to changes in its supply chain. The number of Billabong styles available to shoppers would be cut for the 2013 winter range.

Launa Inman backs up words with share buy

Launa Inman, chief executive of Billabong backed her confidence in the turnaround potential of the company with cold hard cash, buying her first parcel of shares since appointed boss earlier this year. In a statement to the Australian Securities Exchange this morning it was revealed Ms Inman had purchased 59,000 shares in Billabong on October 19 for the total price of $49,610. The average price paid for her stock was 84¢.

According to her directors' interest statement it was the first time Ms Inman had bought Billabong shares since her appointment as CEO in May. Newly appointed director Sally Pitkin has also made her first entry on the Billabong share register since being appointed as a director, buying 70,000 shares at an average price of 82¢ per share.

Read more below (PDFs)

AGM Chairman and CEO addresses
New Board Appointment
2012 Billabong AGM Resolutions
Final Director's Interest Notice

www.billabongbiz.com
 
Source: AAP/Billabong

Author: The Editors

Tags: Billabong,

Industry: Surfersvillage