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Current Price Data+
Current Price
Open
High
Low
Last Close
Volume
Price Movement
$ 9.120
$ 9.040
$ 9.180
$ 9.000
$ 9.060
759,920
$ 0.060 0.662 %
Current Broker Consensus Recommendation
Recommendation :
Hold
Recommendation Date :
19th Jul 2010
12 Month Target Price (average) :
$10.664
Brokers Surveyed :
10
Market Statistics
% of Market:
0.1742
% of Sector:
41.1404
Sector:
Consumer Discretionary
Industry Group:
Consumer Durables & Apparel
Industry:
Textiles, Apparel & Luxury Goods
Company Overview
Company Overview
Billabong International Limited (BBG), established in 1973, produces surfwear and sports apparel and accessories for the surf, skate and snowboard markets. BBG now has a presence in more than 60 countries. The Billabong brand is targeted to both active participants in surf and extreme sports and people who desire to be identified with its image. BBG supports the promotion of the Billabong brand through the sponsorship of athletes and events.
Company History
Billabong was formed in Queensland (1973) by current director Gordon Merchant. After consolidating its operations in Australia in the 1970s, Billabong expanded its distribution abroad to include Japan, the USA and Europe during the 1980s. In 1998, a consortium acquired a 49% interest in Billabong, allowing the firm to convert its licensed US operations to a directly controlled operation. Direct control was similarly established in NZ, Canada and Europe. BBG listed on the ASX in August 2000.
Differentiating Factor
Billabong has a number of advantages over competitors Quicksilver and Nike. The company has a better geographic spread than Quicksilver, which has a high reliance on USA sales. Billabong's diverse geographic spread reduces the seasonality of its earnings. Its pre-ordering system and specialty store sales are superior to Quicksilver's distribution, which includes company-owned stores and department stores.
Major Customers & Competitors
The majority of revenue is generated from wholesale sales to independent retailers. BBG's products are sold to around 2,600 surf and extreme sport shops worldwide. In Australia, over 30% of sales are made from BBG's 10 largest customers. In North America, market leader Pacific Sunwear sells BBG products. In Europe, the customer base is highly fragmented. BBG competes in the branded sports apparel sector against Quicksilver and Rip Curl and also against companies such as Nike, adidas and Puma.
Financial Summary
Year to Jun
NPAT Rep $M
NPAT1 Adj $M
EPS c
EPS chg %
PER x
PER rel All Ords x
PER rel Sector x
DPS c
Yield %
Franking %
ROE %
2007A
167.2
167.2
77.1
14.6
11.8
n/a
n/a
48.2
5.3
100.0
22.1
2008A
176.4
176.4
81.3
5.4
11.2
n/a
n/a
53.0
5.8
100.0
22.2
2009A
152.8
145.4
65.4
-19.6
13.9
1.3
3.0
45.0
4.9
47.0
12.4
1NPAT is normalised by removing non-recurring items and goodwill. All the above statistics are derived from normalised earnings.
Sydney Morning Herald 31/07/2010 | GRAINCORP and AWB have agreed on a multibillion-dollar merger so they can compete against larger rivals in the consolidating global agribusiness sector.
The Age 31/07/2010 | GRAINCORP and AWB have agreed to a multibillion-dollar merger in a bid to compete against larger rivals in an increasingly consolidating global agribusiness sector.
Sydney Morning Herald 31/07/2010 | I t's official: money doesn't buy you happiness. But financial security certainly seems to play a role in whether you're a glass half full or glass half empty type of person.
The Age 31/07/2010 | This reporting season will provide something for everyone, from wary retail investors and professional fund managers to stockbroking analysts, writes Ian McIlwraith.
Sydney Morning Herald 31/07/2010 | Most of us want to make a buck and retire early. But for the golden oldies of business, there's no question of quitting, writes Michael Evans.
$ 9.120
