REMEMBER WHEN

GOLD COAST BULLETIN Saturday, August 25, 2007

GOLD Coast-based global surfwear giant Billabong posted a record $167 million profit as its iconic brand continued to penetrate the youth market in far flung corners of the globe.

The result, which would have been even higher except for a surging Australian dollar, was delivered on a $203 million jump in revenue to $1.22 billion, helping Billabong cement its position as the world’s most profitable company in its sector.

Although US-based Quiksilver boasted higher turnover,

Billabong’s nearest competitor slumped to a net loss in its second quarter.

Billabong chief executive Derek O’Neill said despite the drag created by a rising dollar, “the underlying business is performing strongly”. “Demand for the group’s products grew in all major territories, most notably Europe,” he said.

The European gains highlighted Billabong’s reach as a brand and its ability, after 34 years in business, to connect with its young demographic.

While the company sponsored key Australian and US surfers, such as Mark Occhilupo and

Manoa Drollett, the company was making inroads into Europe where it sponsors some of the world’s key snowboarders.

However, Mr O’Neill said Europeans also embraced surf culture, despite many of them living in landlocked countries.

Apart from action sports, Billabong also sponsors young protégés in diverse fields such as art and music.

But there’s nothing like success breeding success.

Skateboarder Bam Margera, voted the most powerful celebrity under 30 among today’s youth, was one of the key stars on Billabong’s books.