Pacific Brands Ltd (ASX:PBG) has rebounded from a loss a year ago, to post a net profit of $52.7 million for the 2010 financial year.
The clothing manufacturer increased revenue by 11 per cent to $1.74 billion.
Despite lower hedged exchanged rates and more challenging retail conditions, Pacific says cash flow was exceptionally strong and net debt was reduced substantially.
Looking ahead Pacific forecasts underlying sales performance is expected to improve, however reported sales growth will continue to be impacted by past divestments and ongoing brand discontinuations.
Dividends are expected to be resumed following the first half result for the current fiscal period, with a target payout ratio of at least 50% of net profit after tax.
Pacific Brands reported a loss of $234.48 million for the year to 30 June 2009.
PBG Price at posting:
$1.02 Sentiment: None Disclosure: Held
