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Pacific Brands posts loss

bonds, pacific brandsPacific Brands reported a $98 million loss for the full year ended June 30, largely due to non-cash impairments announced in the first half.

The company, which owns the Bonds and Sheridan brands, made a net loss of $97.7 million for the 12 months to June 30, which is better than the $224.5 million loss it posted a year ago.

Sales revenue for the year was up 5.4 per cent to $789.7 million, but the result was weighed down by $138.5 million in writedowns made during the first six months of the year.

“Pacific Brands is now higher quality, simplified business with a leading brand portfolio and greater potential growth,” said CEO, David Bortolussi.

“The company has a strong balance sheet and is debt free for the first time in its history.”

Bortolussi said retail performance had been particularly strong, with comparative store sales up 20 per cent for Bonds and 13 per cent for Sheridan.

“The Bonds store rollout in on track with 18 openings during the year and its profit contribution doubled in F15,” he said. Adding that brand and product innovation continues to be a strength for the company.

“We have made significant progress in key growth initiatives across the business, including the company’s first concession arrangement in Myer to showcase the new Bonds Sport range which will be in stores from November, a new Sheridan kids and baby range which has been developed for launch in new David Jones concessions, and a new international joint venture for Berlei which has launched the brand in the UK and Europe.”

Bortolussi said the company has clear strategic priorities and operational plans in place to deliver profit growth in FY16.

“Currency depreciation has continued to challenge the industry as a whole, but we have plans in place to mitigate the dollar impact on margins through a range of cost reduction and pricing measures,” he said.

The company said it expects a continuation of challenging and variable market conditions in FY16.

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