Billabong online sales grow by 50 percent in FY12

For the full year, the group incurred a net loss after tax of 275.6

million dollars (Rs 1,532 crores). Revenue was down 7.9 percent in reported Australian dollar (AUD) terms (down 5 percent in constant currency terms) compared to the prior corresponding period, including online sales growth of approximately 50 percent.

The group’s sales declined to 19.7 percent from 27.8 percent in the previous year. Its net cash flow from operating activities increased 224.2 percent to 78.9 million dollars (Rs 438 crores), as compared to 24.3 million dollars (Rs 135 crores) for the same period last year. Whereas, group’s net debt reduced to 160.9 million dollars (Rs 894 crores) or 94.2 million dollars (Rs 523 crores) when adjusting for the net proceeds of the retail entitlement offer.

Billabong made 285 million dollars (Rs 1,584 crores) in proceeds from the partial sale of Nixon. During the fiscal 2012 as at 30 June, the group had closed 58 of its non-performing stores, with a further 82 non-performing stores identified for closure in FY13. For the fiscal 2013, the group expects to realize incremental EBITDA of approximately 6 million dollars (Rs 33 crore) (approximately 8 million dollars (Rs 44 crores) on an annualized basis). Also it expects cost savings of approximately 30 million dollars (Rs 166 crores) per annum from cost reduction initiatives undertaken in FY12. Assuming the current challenging trading conditions, the group expects FY13 EBITDA to be in the range of 100 million dollars (Rs 551 crores) to 110 million dollars (Rs 611 crores) in constant currency terms. This compares to pro-forma FY12 EBITDA of 84 million dollars (Rs 467 crores), excluding 100 percent of Nixon and significant and exceptional items.

Billabong International is into marketing, distribution, wholesaling and retailing of apparel, accessories, eyewear, wetsuits and hardgoods in the boardsports sector under the Billabong, Element, Von Zipper, Honolua Surf Company, Kustom, Palmers Surf, Nixon, Xcel, Tigerlily, Sector 9, DaKine and RVCA brands. It has its presence in more than 100 countries with majority of revenue generated through wholly-owned operations in Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil.