Billabong posts $859.5 million loss, Noni B reports full-year loss, Flight Centre profits jump 12% in full year: Midday Roundup

Beleaguered surfwear retailer Billabong’s woes aren’t likely to disappear anytime soon, as this morning it posted an $859.5 million full-year loss.

The results mark the end to a financial year which was plagued by failed deals, profit writedowns and poor sales across its key regions of Australasia, Europe and the Americas.

Global sales revenue fell 13.5% to $1.34 billion in reported terms compared to the previous year.

Australasia sales fell 6.6% to $471.8 million, but earnings for the region were up 5.8% to $2.38 million.

The refinancing of the brand is in its final stages, with the brand last month reaching a $325 million deal with US-based Altamont Capital Partners which will allow it to repay existing debts.

The deal has recently been halted as two United States hedge funds, Centrebridge and Oaktree, have also put forward their own plans. Billabong is still considering the offers.

Billabong chairman Ian Pollard said in a statement the refinancing deal had impacted upon the morale of the company and had been “very costly”.

“The company looks forward to refocusing, reinvigorating its brand and rebuilding the business on a solid, long term financial footing,” he said.

Billabong shares lost 10.62% this morning upon the announcement, down to $0.505.

Noni B reports full-year loss

Retailer Noni B has said the pre-election caution has played some part in the company’s full year results, which have resulted in a net loss.

In the year to June 30, Noni B reported a loss of $3.5 million, down from a profit of $2.7 million reported during the previous corresponding period.

The company was affected by an impairment charge of $5 million. Sales were up 1.5% to $121.5 million. There was no final dividend paid.

Flight Centre profit jumps 12% in full year

Flight Centre has recorded a 12% increase in profit during the current year, sending the company’s shares up 5.74%.

The company reported net profit grew 23% to $246.1 million, including a 6.1% million non-cash injection from revaluations of office properties, from $200 million in the previous year.

Revenues grew 8.7% to $2 billion from $1.8 billion. In the current year, profits are expected between $370 million and $385 million.

“Growth will predominantly be organic. Acquisitions are likely to be businesses that can be vertically integrated, without the company taking on significant capital assets,” the group said in a statement.

Shares open flat

Aussie shares have opened flat this morning, as no major economic news is expected.

The S&P/ASX200 benchmark was down 4.2 points to 5132.2 just before midday.

Overnight the Dow Jones closed 0.43% lower, down 64.05 points to 14,946.46.


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