Billabong $537m Loss 1H2013

Submitted by Share Trading on 27 February, 2013 - 08:35

Surfwear company Billabong (ASX:BBG) has announced its financial results for the first half of 2013 to its shareholders and investors.

  • Billabong posted a Loss for the half year of $536.6 million, compared to a $16 million profit from the previous corresponding period.
  • The company has breached its debt covenants after large write-downs. The company lists $270 million in borrowings from banks and listed as Current Liabilities on its balance sheet after breaching its debt covenants.
  • Billabong is being targeted for takeover by two US based private equity firms, which is expected to finish in March.
  • The Billabong Loss results includes a $428 million impairment on the value of Billabong's goodwill and brands and a $107 million writedown on its stake in watch brand Nixon. The company had sold the Nixon brand but retained a 48 percent minority stake.
  • EBIT increased from $32 million to $36.4 million.