We are catching up on Globe International’s financial results for the year ended June 30, which were released late last month.
The company, headquartered in Australia, managed to grow revenue despite the difficult action sports environment, with Europe and Australia performing the best.
Net sales
Company net sales reached AUD $103.5 million, a 13% increase in constant currency.
EBITDA
EBITDA was AUD $2.4 million, an improvement of AUD $7.1 million.
Last year, Globe reported an EBITDA loss of AUD $4.7 million.
Net profit after tax
The company reported a net loss after tax of $12.3 million, including a $17.1 million non-cash impairment charge.
Excluding that special item, the company would have reported a net profit after tax of AUD $500,000, a significant improvement from last year’s results.
Last year, Globe reported a net loss after tax, excluding special items, of AUD $5.1 million.
SES writer Shelby Stanger had a very informative Executive Edition interview with Globe CEO Matt Hill recently that explained how the company has managed to grow sales and improve its bottom line in a difficult environment.
Australia
This region reported revenue of AUD $37.9 million for the year – an increase of 42% in constant currency.
The growth came from the addition of Stussy to its streetwear division, and the growth of the workwear brand F.X.D., which the company owns.
EBITDA in this region was AUD $3.3 million. That was an improvement over the AUD $1.4 million EBITDA reported last year.
Europe
Europe reported revenue of AUD $26.6 million for the year.
Sales in Europe grew 23% in constant currency. While Europe has been a difficult region for many companies in the action sports space, Globe has managed to grow revenue double digits for four consecutive years.
The growth in Europe is coming from the Globe brand in apparel, footwear and skate hardgoods.
Europe reported EBITDA of AUD $3.6 million, an improvement over a very small EBITDA loss last year.
North America
Revenue from North America, the company’s largest region, was AUD $39.7 million.
This was the toughest region, with sales down 9% in constant currency, partly due to a restructuring last year at Dwindle that led to certain operations being discounted, the company said.
Skate hardgoods and Globe apparel grew in the region.
North America recorded an EBITDA loss of AUD $1 million, which was narrower than the AUD $3.2 million EBITDA loss reported last year.
Looking forward, the company is seeing some positive signs now emerging at Dwindle, and said that so far, in the current fiscal year Dwindle is growing.
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