17 Feb 2015

First half loss for Pacific Brands

2:44 pm on 17 February 2015

Pacific Brands has reported a loss of $A108.7 million in the six months to December, primarily due to writedowns of its assets.

The company, whose brands include Bonds, Jockey, Berlei and Sheridan, took a $139 million hit on its goodwill, brand names and plant and equipment.

Pacific Brands had reduced its operations in recent times to help restore profitability.

The company has now written down the value of its assets.

But chief executive David Bortolussi said Pacific Brands was now in better shape, with sales from continuing businesses rising 6 percent to $392 million Australian dollars.

But he warned conditions remained tough.

Pacific Brands was forecasting second half underlying operating earnings to be between $25.9 and $31.5 million, compared with $25.9 million in the same period a year earlier.

Looking ahead, the company expected its bottom line to be hit by a weaker Australian currency as about three quarters of its purchases are paid for in US dollars.

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