Wipeout for Billabong profit

AAP

SURFWEAR brand Billabong International Ltd has posted annual net profit down almost five per cent, but says it expects profit to grow by two to eight per cent in the current year.

Billabong reported on Friday net profit for the year to June 30 of $145.988 million, down 4.5 per cent on the prior year.

Revenue from continuing operations was $1.488 billion, down 11.2 per cent.

Billabong declared a final dividend of 18 cents, with nine cents franked, steady with the previous year.

This brings total dividends for 2009/10 to 36 cents, down from 45 cents in 2008/09.

Billabong said, however, that it was well positioned for future growth.

"In the absence of any further unforeseen, exceptional circumstances impacting the global boardsports market, (Billabong expects) NPAT in constant currency terms... to grow (in 2010/11) in the range of two per cent to eight per cent compared with the prior year as an improving outlook in the Americas and continued strength in Europe is offset by a challenging market in the key territory of Australia," Billabong said in a statement.

"This earnings guidance, which reflects a reasonably flat expected (earnings before interest and tax) EBIT result, higher interest costs and a lower effective tax rate, is expressed as a range due to continued volatility in the global markets in which the Group operates, in particular the Australian consumer market."