Results 2: BBG, APN

  A fall in annual profit and lowered final dividend at surfwear group Billabong International left the market unimpressed and the shares more than & #160;5% lower by the close on Friday.The shares ended at & #36;9.67, down 52 cents on the day that saw investors go right off the stock, especially with the conservative outlook from the company for no real improvement in earnings from 2009's lower figure.While revenue jumped 23% (thanks to the lower Australian dollar during much of the year and other factors), profit margins took a & #160;hit and the downturn in the US retailing sector is obviously hitting the bottom line.Net profit for the year ended June 30 fell 13.3% to & #36;152.84 million, & #160;from & #36;176.38 million in 2008.Its operating & #160;profit, & #160;(excluding a non-cash impairment charge of & #36;7.4 million) was & #36;160.2 million, down 9.2%.The operating result was at the bottom of the company's guidance range for a profit between & #36;160 million and & #36;165 million, and was lower than guidance because of the Aussie dollar's rise in June. & #160;Billabong said the & #160;recent & #160;appreciation in the Australian dollar exchange rate against the US dollar and Euro, had reduced its operating profit from an expected & #36;163.1 million. & quot;Group sales revenue of & #36;1.67 billion represented a 23.9% increase on the prior year (or 9.1% higher in constant currency terms). & quot;The sales growth was amplified by acquisitions and the translation benefit from the relative weakness in the Australian dollar, primarily against the USD and Euro, throughout much of the financial year. & quot;Gross profit margins of 53.2% (54.9% previously) remained strong, with the easing primarily reflecting the impact of the tougher economic environment in the United States. & quot;Group EBITDA of & #36;284.8 million eased 2.4% (down 13.9% in constant currency terms), while EBITDA margins reduced to 17.1% (from 21.7%), primarily reflecting the impact of challenging trading conditions, in particular in the United States, combined with an increased contribution from lower margin territories and acquired brands, & quot; the company said in Friday's ASX statement.Billabong CEO Derek O'Neill said the result reflected the swift and unprecedented economic slowdown that impacted global economies. & quot;Given the lack of retailer confidence, the steep slowdown in consumer spending in various global economies and the extreme volatility in exchange rates, the company has emerged in remarkably good shape,'' he said.Mr O'Neill said the group was approaching 2009-10 with conservative expectations.He said it was difficult to build a potential recovery in retailer demand and consumer spending into its forecasts.But in the absence of any further unforeseen exceptional circumstances impacting the global surfwear and boardsport's market, Billabong is forecasting reported net profit to be to be flat in 2009-10.The company said this & #160;guidance was based on monthly average exchange rates for July 2009 and assumes the rates for the rest of 2009-10 will be around the August average rates of 83 US cents and 58 euro cents.Billabong also said the forecast represents constant currency net profit growth - excluding the 2008-09 impairment charge of about 5%.Billabong declared a final dividend of 18 cents a share, & #160;down from 28.5 cents in the previous corresponding period; that made an & #160;annual & #160;payout of 45 cents, down from 55.5 cents in 2008.Once again it's what boards do with dividend payments, especially finals that tells us as much about their view for the coming year as any statement.It's all about cash conservation at the moment, and Billabong is no different.  

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