Billabong's half-year sales rise by 7.6%

By

Olivier Guyot

Published
Feb 29, 2016

The Billabong group has benefited from exchange rate dynamics. The Australian group, owner of the eponymous brand and of Element and RVCA, enjoyed a revenue growth of 7.6% in the first six months of its current fiscal year, closed 15th December, reaching AUD561.9 million (€368 million). At constant exchange rates, the group saw a slight downturn though (-0.8%).

The Asia-Pacific region remains the group's main market, generating nearly AUD244 million in revenue, equivalent to a 2.8% rise. The Americas region, thanks to favourable exchange rates, reached AUD220 million (+11.7%), while Europe, with AUD98 million, achieved an 11.5% growth.

The group reported that the results for its three leading brands are on the upswing, with Billabong rising 2.6%, Element by 9.1% and RVCA by a remarkable 20.6%.

However, the group's gross margin declined by 260 base points, due to issues with exchange rates and inventories, depending on the region. Its EBITDA was consequently down 13.1% (18.8% at constant exchange rates), to AUD37.2 million.

Across the entire 2015-16 fiscal year, Billabong is expecting to reap the benefits of the strategy implement last year. The group remarked that figures for January and February 2016 were above expectations, adding that the month of June, North America's main ordering period, will be crucial.