BRISBANE - Billabong International shares soared yesterday on a wave of confidence after the surf-wear and apparel company increased its 2004-05 net profit forecast.
Billabong lifted its guidance for the financial year from a 30 per cent rise to 40 per cent.
The forecast sent Billabong's shares up A$1.58 ($1.72) or 13.04 per cent to A$13.70, adding more than A$325 million to the company's market capitalisation.
Billabong's chief executive Derek O'Neill said 40 per cent net profit growth in 2004-05 to around A$120 million ($130.5 million) would be a "very strong result".
"But we have to get a lot of growth in the second half in the northern hemisphere to achieve that," he said.
"It's not an easy task so we don't throw that number out there lightly ... but we're pretty confident of getting there."
Billabong yesterday announced a net profit of A$70.1 million for the six months to December 31, 2004, up 73 per cent on the previous corresponding period.
It said its group sales revenue rose 37 per cent to A$419 million, up from A$305 million in the first half of 2003-04.
The company also declared an interim dividend of 17.5Ac a share, fully franked, up from 12.5Ac previously.
O'Neill warned not to expect a repeat of the first-half net profit result in the second half of 2004-05.
The result reflected a strong retail environment particularly in the Australasian summer where sales lifted 56 per cent to A$161 million.
O'Neill said "a lot of things lined up for us" in the six months in the Australasian market, This including strong summer retail conditions, favourable US currency conditions and the growth of Element as a brand.
In the Americas, sales grew 46 per cent to US$128 million ($176.7 million).
- AAP
Surf-wear label lifts forecast
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