Operating margins before interest, taxes, depreciation and amortization (EBITDA) had healthy growth in Europe for Billabong in its 1st half ended Dec. 31, going up to 20.4 percent of total sales in the region from 17.8 percent in the same period of a year ago. The company’s EBITDA in Europe was up by 34.1 percent in local currencies, and it reached 18.1 million Australian dollars(€11.3m-$13.4m) during the 6-month period. European sales went up by 16.9 percent to €54.4 million in local currencies.
The continent’s strong performance was aided by favorable exchange rates, by decent sales of accessories and other high-margin products, and by more efficient supply chain processes. The company says the retail environment was tough, but Element and Von Zipper brands performed well. By country, Italy and Spain were noted as being especially strong in the half.
Elsewhere, sales grew by 10 percent in Australasia to A$177.1 million (€110.3m-$131.0m) and by 27 percent in the Americas to A$41.7 million (€26.0m-$30.8m). As a percentage of sales, the EBITDA in Australasia and the Americas was respectively 34.9 and 19.1 percent.
The Element brand now represents more than 15 percent of the group’s revenues, as its sales rose by 30 percent in the 1st half. Additionally, the brand launched a line of footwear in the period whose deliveries to the USA, Europe and Australasia began this past January.
In total, Billabong reported a 14.7 percent increase in net profit to A$79.5 million (€49.5m-$58.8m) from a 16 percent expansion in revenues to A$490.1 million (€305.4m-$362.5m) The company said that strong performances outside of the USA secured its place as a global force. Billabong owns and operates 108 retail stores around the world and licenses another 39. The retail revenues of its company-owned doors are projected to surpass $A100 million (€62.3m-$74.0m) during the current fiscal year.
