After a strong fiscal 2018, Globe International's earnings rose again during the first half of its financial year. Net profit after tax rose by 25 percent to 4.3 million Australian dollars (€2.7m-$3.0m) for the six months ended on Dec. 31, 2018, with Ebitda rising by 23 percent from the year-ago period to A$ 5.0 million (€3.1m-$3.5).
The management said it has been able to grow the business overall despite the continued challenging nature of the boardsports market, in particular for skate hardgoods. To counteract the trend, the brand has focused on providing growth in the workwear channel. In addition, its Impala rollerskates continued to grow from a low base, addressing a female market through boardsports, fashion boutiques and multi-door lifestyle retail channels.
Globe International's sales improved by 11 percent to A$ 78.1 million (€48.7m-$55.3m), or by 8 percent in constant currencies. The growth was driven by the Australasian and North American segments, which grew by 12 and 8 percent respectively, in local currencies.
The workwear division performed well in Australia, while apparel was the key driver for the company's growth in North America. The Ebitda in Australasia gained 11.3 percent, while in North America, it was a negative A$ 470,000 (€293,000-$332,000), up from a negative A$ 262,000 for the year-ago period. In Europe, sales declined by 6 percent, driven by softness in the boardsports sector. The Ebitda in the region declined by 16.7 percent.
Overall, the company's gross margin went down, although the company did not provide specific figures. It said this was predominantly a result of changing business mix, as well as foreign exchange.
Looking forward to the second half of this financial year, the management said that it expects the combination of continued uncertainty in retail markets and the strength of the U.S. dollar to have an adverse impact on profitability. As a result, it anticipates that profits for the 2019 financial year will be in line with the 2018 financial year, while sales should grow modestly.