Pacific Brands loses $A362.4 million in first half
Pacific Brands has posted a first-half loss of A$362.4 million, with sales falling by 20%
Pacific Brand’s first-half loss widened after it had written off goodwill in its underwear business, with sales falling by 20%.
The Melbourne-based company, which owns the Stubbies, Berlei, Bonds, Dunlop and Sheridan brands among others, made a loss of $A362.4 million in the six months ended December 31 from a loss of $A166.1 million.
Pacific Brands said net profit before significant write-offs fell 38% to A$35.7 million. The bottom line included the A$388.7 million write-off goodwill booked for the underwear division when the company floated in 2004, raising $A1.25 billion.
Underlying sales were down 7.4%. Excluding sales through K-Mart, which last year decided to stop selling branded goods including Pacific Brand’s star performer Bonds, sales were down 2.9%.
“As expected sales performance was impacted by difficult trading conditions and the K-Mart transition,” said chief executive Sue Morphet in a statement.
The write-down of goodwill in the underwear business is disappointing but a necessary step to reflect the impact of trading conditions and other factors on the business’ performance and outlook.”
Last month, Pacific Brands said it’s in takeover talks with KKR, amid reports the US private equity firm made an offer worth $A600 million.
Robert McCambridge
Fri, 17 Feb 2012
Fri, 17 Feb 2012
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Free News Alerts
Sign up to get the latest stories and insights delivered to your inbox – free, every day.
Pacific Brands loses $A362.4 million in first half
18911