Industry News

Billabong Year Net Profit Jumps 44 Percent

Surfersvillage Global Surf News, 20 August, 2005 : - - SYDNEY, Australia; Billabong International Ltd. said Friday its net profit for the year to June 30 swelled 44 percent from a year earlier to 125.4 million Australian dollars (US$94.4 million; euro77.29 million). The company said in a statement its sales rose 25 percent to A$850.8 million (US$640 million; euro524.03 million) for the year.

"It was an exceptional year at retail levels and, while the second half was more subdued than the exuberant first half, Billabong maintained strong momentum through to the end of the year," Chief Executive Derek O'Neill said in the statement.

O'Neill said he expects Billabong to return to its target of 15 percent earnings per share growth in the year to June 30, 2006.

Sales rose around the world for Billabong.

In the Americas, sales revenue increased 29 percent to US$293.9 million (euro240.65 million); Australian sales climbed 43 percent to A$275.7 million (US$207 million; euro169.49 million); and in Europe, sales rose 9.4 percent to A$173.9 million (US$131 million; euro107.26 million).

"While retail conditions in Australia softened in the second-half, Billabong's global reach and multi-brand strategy (allow) it to absorb region-specific economic fluctuations and retail cycles and still deliver solid growth," O'Neill said.

O'Neill said the company's established brands -- such as its Billabong surfwear, skateboard-influenced Element apparel and Von Zipper eyewear -- maintained strong growth, while its emerging brands, such as Kustom footwear, Honolua Surf Company wholesale range and Palmers Surf surfboard wax brand, grabbed bigger shares of the lucrative surf products market.

"Full Year Results Overview" is available here

www.billabong.com

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Industry - Surfersvillage