Billabong shares plummet as company records $859m loss

SHARES in ailing surf wear company Billabong International dived dramatically on Tuesday after it revealed an after-tax net loss of $859.5 million in the past financial year.

The market was quick to react to the news, with Billabong's share price dropping 13% in early trading to 46 cents.

Predictions of a $650 million loss proved to be way off the mark, with a 13.5% collapse in global sales and significant write-downs and impairment charges across the company's various brands driving the result.

It comes after Billabong, whose financial woes have been well-documented in recent years, posted a $287 million after-tax loss in 2011/12.

Considering the gravity of the loss, Billabong chairman Ian Pollard was remarkably upbeat and predicted a "strong future" for the company, whose founder and biggest shareholder Gordon Merchant counts a multi-million property in Angourie among his assets.

Dr Pollard said managing multiple bids and refinancing proposals had proven to be a "significant distraction" for everyone involved with the company.

"Financial stability is critical to rebuilding Billabong," Dr Pollard said in a statement.

"Liquidity has been secured and we are within weeks of finalising our long-term funding arrangements. Our shareholders, our staff and our various business partners can be confident that we have a strong future following the most challenging period in the company's history."



NBN reveals rollout plans for future Ipswich network

premium_icon NBN reveals rollout plans for future Ipswich network

Across Ipswich, technicians are busy connecting the NBN to premises

Showers forecast in Ipswich today

Showers forecast in Ipswich today

Rain unlikely to bring substantial rainfall, forecasters predict.

'Sadistic, degrading': Drugged offenders' attack on girl, 16

premium_icon 'Sadistic, degrading': Drugged offenders' attack on girl, 16

They came into the room with a meat cleaver, scissors

Local Partners