Clothing and footwear manufacturer Pacific Brands (PBG) made a net profit of $52.7 million for the 12 months to the end of June. The earnings lifted up the company from its loss of $235 million a year ago.
Pacific Brands' chief executive officer Sue Morphett said, “Our ability to maintain margins over the last 12 months through price and cost savings is a clear sign that our strategy delivered.”
The company cut more than 1,800 Australian jobs last year. The earnings this year could be attributed largely to offshore sourcing and better foreign exchange rates.
Morphett emphasized that “Reported sales will continue to be impacted by divestments and discontinuation, but in financial year 2011 an improvement (is expected) in underlying sales performance.”
The chief executive said revenue is up 11 percent in spite of the difficult retail environment. Pacific Brands shares were up nearly 15 per cent to $1.015 before noon.
“With transformation savings coming through, and an improved exchange rate, we are confident of improving earnings this year in a difficult market,” Morphett said.
Bonds, Hard Yakka, King Gee, Stubbies, Clarks, and Hush Puppies are manufactured under the Pacific Brands. All products are sold throughout the Asia-Pacific region, the United States, and Europe.