ROTH CAPITAL PARTNERS: Hosting 27th Growth Stock Conference March 8-11 in Dana Point, Calif.
Details on Industry Insight.
Billabong reported earnings this afternoon for the six months ended Dec. 31, 2010.
Here are the highlights:
Group sales revenue: $834.9 million. Up 24.4% in constant currency. Up 15.8% in reported AUD.
Net profit after tax (NPAT): $57.2 million. Down 9.8% in constant currency. Down 18% in reported AUD.
The strong Australian dollar dampened reported results. The company said on a constant currency basis, total sales would have been $49 million higher and NPAT $6 million higher.
Consolidated gross margin: 54.3% vs. 55.5%.
Group EBITDA: $94.6 million, down 17.3% in constant currency terms.
Group EBITDA margin: 11.3% vs. 17.1% during the same period last year. Excluding M&A and restructuring costs, EBITDA margins were 12.6%.
Company retail: 635 stores vs. 380 at the end of June. Retail revenue accounted for about 40% of total company revenue during the period.
EBITDA retail margins: 13.6% vs. 14.9% during the same period last year. Margins improved in Americas and Europe and weakened in Australia. Margins also hurt by initial dilutive effect of acquisitions. This is expected to improve as more company-owned product is integrated into new stores.
Net debt: $382.7 million
Revenue: up 38.2% to $408.4 million compared with same period last year. Revenue grew from acquisition of West 49 and improved company owned retail sales, particularly at Honolua and Beachworks banners.
Operational EBITDA: up 12.5% to $46.6 million.
Operational margins: 11.4% vs. 14% due to the recent acquisition of West 49, though this is expected to improve once more company branded product is integrated.
Revenue: up 14.3% to $157.2 million largely due to Element, Nixon and DaKine in Germany, France and central Europe. Southern countries still weak, particularly Spain.
Operational EBITDA: up 7.7% to $30.8 million
Operational EBITDA margins: 19.6% vs. 20.8% due to higher input costs
Revenue: up 13% to $269.3 million. The increase was due to acquisition of Jetty Surf and Surf Rush. However, weak consumer spending and a wet summer led to soft retail sales and soft wholesale sales.
Operational EBITDA: down 22.9% to $51.8 million
Operational margins: fell to 19.3% from 28.2%. Company owned retail EBIDA margins in Australasia, including Jetty Surf and Surf Rush, fell to 18% vs. 24.4% in the same period last year.
The company has previously said 2011 will be a transition year as Billabong digests its acquisitions.
Full year group sales: $1.7 billion at current exchange rates.
Full year net profit after tax: flat vs. last year in constant currency terms.