AUSTRALIAN CLOTHES MAKER PACIFIC BRANDS BOOKS 10% RISE IN YR PROFIT

SYDNEY, Aug 20, 2008 (AsiaPulse via COMTEX) -- PFBDF | Quote | Chart | News | PowerRating -- Clothes manufacturer Pacific Brands Ltd (ASX:PBG) has reported a ten per cent rise in annual profit but expects flat to negative sales for the remainder of 2008 before recovery in 2009.

Pacific Brands reported a A$116.56 million (US$101.56 million) profit for the year to June 30, compared to A$106.0 million in 2007.

That result was just in line with the company's forecast confirmed at the release of its first half results.

Analysts had forecast growth of between eight per cent and 12 per cent, with a bottom line of between A$114 million to A$118 million.

The manufacturer, which includes Bonds, Berlei, King Gee and Sleepmaker among its brands, said it expects sales growth of two to three per cent, while maintaining strong cashflow.

"We will achieve this through tight control of expenses, targeted and tailored marketing investment and ensuring an inventory balance consistent with sales," the company said in a statement today.

"Against a backdrop of flat to negative economic outlook for retail for the first half at least, we are focussed on ensuring the business is trading at peak performance and ready to capitalise on the eventual upturn in activity."

Pacific Brands will provide an update at its performance at its Annual General Meeting in October.

Pacific Brands is paying a final dividend of 8.5 cents payable on October 1, making a total of 17 cents for the year, fully franked.

Sales revenue rose 16.3 per cent, to A$2.117 billion from A$1.820 billion in 2007.

Chief executive Sue Morphet said the company's performance had been achieved in challenging trading conditions and demonstrated the resilience of the Pacific Brands business.

"Despite economic conditions, we remained focussed on core brands and delivered profitable growth," Ms Morphet said.

"Despite its stable of strong brands, Pacific Brands has not been completely immune to the recent downturn.

"We have found the top-end manchester market and women's fashion footwear to be particularly sensitive to the change in consumer sentiment."

Pacific Brands' recent acquisitions of The Yakka Group, Brand Collective and Sheridan helped drive earnings as well robust sales in its underwear and hosiery division.

Earnings per share rose to 23.7 cents, from 21.3 cents the previous year.

(AAP)

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index