Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Pacific Brands posts A$131.5M loss on charges, weak sales

Pacific Brands posts A$131.5 mln loss on impairments, weak sales

By Jason Krupp

Aug. 24 (BusinessDesk) - Pacific Brands Ltd., the Australian clothing maker which sold its Sleepmaker and Dunlop Foams business to Sleepyhead this year, has reported a full-year loss of A$131.5 million, with its cost savings initiative unable to reverse losses from weaker sales and one-time charges.

The net loss for the 12-months ended June 30 compares to a profit of A$53.2 million in the previous year, mainly reflecting impairment charges of A$235.3 million related to non-cash write-downs, one-off transformational costs and divestments, the company said. Stripping out significant items, pretax earnings rose 4.6% to A$189.7 million in the year. Sales fell 7.3% to A$1.6 billion.

"The prevailing headwinds in the retail sector are presently masking some substantial underlying improvements we are making within the business," said chief executive Sue Morphet. "Our decision to source more of our products off-shore and manage with a leaner cost base was critical to the improved (underlying) result and will also help us deal with the significant cost pressures and other challenges we expect in the current year."

The company's results come amid stalled Australian consumer spending, with ongoing surge in the minerals and mining sector masking moribund performance in the rest of the economy.

The Melbourne-based company warned that next year's earnings are expected to come in lower than the 2011 results, with weak retail conditions expected to persist and input costs rising due higher cotton prices.

Drilling down into the company's business segments, underwear and hosiery reported a 0.8% decline in sales to A$493.6 million due to the discontinuation of non-core brands, although earnings before interest, tax and amortisation rose 11.4% to A$111.3 million in the period.

Workwear sales rose 4.6% to A$396.8 million with EBITA up 19.3% to A$49.9 million. Homeware sales fell 1.4% to A$398.7 million, with EBITA up 20.3% to A$40.4 million. Footwear, outerwear and sports sales fell 23.6% to $305.2 million, with EBITA down 95% to A$800,000.

The company resumed dividend payments, declaring a fully franked dividend of 3.1 Australian cents per share. Pacific Brand shares were unchanged at 80 cents today on the NZX, and have declined 38.5% so far this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>

Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>


Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>

Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>