Trendy surf and streetwear producer Globe International Ltd on Wednesday said it was trading profitably and expects to return to profit this year following its recent problems.

The Melbourne-based company, whose brands include Mooks and Stussy, posted a loss of A$59.7 million (US$42.3m) for the 12 months to June 30 after it wrote off its unprofitable US apparel unit Kubic Marketing Inc.

"Over the last six months we have concentrated very strongly on getting our cost base right and improving working capital management," CEO Mike Sonand said in a statement.

"We are now focusing on restoring shareholder value and that will be achieved by returning to the key strengths that have delivered value in the past which includes investing in our core brands, delivering great product and outstanding marketing.

"As a part of this process, in the year ahead there will be an increased emphasis on Globe's surf presence which will assist in the growth of board sports based apparel complementing the growth of the urban and street brands Mooks, Stussy, M-ONE-11 and Paul Frank."

He added the firm's new joint venture skateboard manufacturing facility in China, the Chop Chop Wood Shop, has now reached commercial production.