REPORTING SEASON: Billabong Limited (BBG)
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Figure 1: Billabong Limited Iron 12 month chart
Troubled surfwear retailer Billabong Limited (BBG) has reported a bigger than expected full year net loss after tax of $859.5M due to a large number of writedowns.
The company had $604M worth of goodwill writedowns in the period which had a negative impact on its brand.
BBG was valued at $90M at the end of June and $614M at the end of 2011.
The FY13 result also included a $129M writedown as a result of transactions involving the US brand Nixon.
Revenue fell 13.5% to $1.34B and was down 12.6% in constant currency terms.
It has been a difficult 12 months for the company which has been the subject of a number of takeover offers and is now focusing on repaying debt and rebuilding the company.
BBG Chairman Dr Ian Pollard today said “We are nearing the end of a long process that has caused distraction, impacted on staff morale and has been very costly.
BBG will not pay a final dividend as flagged in its half year update.
BBG shares fell heavily during Tuesday’s trade and are down almost 40% on the calendar year.