• H1 net profit AUD25.7m (US$20.1m), versus AUD126.3m loss
  • Revenues down 0.5% to A$522.1m
  • Turnaround still in early stages
Fiske said there is still "significant" operational reform to be undertaken

Fiske said there is still "significant" operational reform to be undertaken

Ailing surfwear business Billabong International returned to profitability in its first half, but cautioned that the company’s turnaround strategy remained in its early stages.

Revenues dipped slightly in the six months to 31 December, as sales in Asia Pacific and Europe fell 1.5% and 0.5% respectively, offset by a 0.9% revenue increase in the Americas.

Billabong said its European EBITDA had increased 5% following restructuring, adding that US wholesale revenues for the Billabong brand increased 9.5% and rose 5.7% for RVCA on a like-for-like basis.

However, it reported that Australian retail sales had declined over Christmas and said that, while its seven-point global turnaround strategy was building momentum, it remained in its early stages.

“A year into our turnaround it’s encouraging to see the group return to profitability for the first time in three years,” said CEO Neil Fiske.

“There remains though significant operational reform to be undertaken.

“Where our effort is being concentrated we are seeing positive signs of brand growth and improved margins… However, as expected in what is a complex global turnaround, there is not yet universal progress across our operations and these results are impacted by changes to our portfolio.”