Outdoor goods company Kathmandu has reported a sharply reduced profit as Covid-19, the costs of a new business, and accounting changes ate into its earnings.
Net profit fell 85 percent to $8.8 million for the year ended July compared with $57.6m the previous year.
Revenue was up nearly 50 percent to $801m, but this was bolstered by earnings from its recently acquired surf business, Rip Curl.
But the acquisition also cost $18m, which along with $4.6m restructuring cost, and $2.6m accounting costs dented the bottom line.
Kathmandu chief executive Xavier Simonet called the past year "transformational".
"Unfortunately the Group faced significant unexpected challenges with Covid-19 restrictions and lockdowns. We took decisive action early to reduce costs, adjust the operating structure of the business, and raised $207m of equity."
Group sales were up 48.7 percent to $801.5m compared to $538.8m a year earlier, but that included nine months of earnings from Rip Curl.
Simonet said the pandemic and associated lockdowns had cost the company about $70m in sales, but it had been quick to lift its online sales capacity, which accounted for nearly 16 percent of group sales, and overall sales had rebounded strongly when restrictions were eased.
He said Kathmandu was strong financially and operationally, with the cash injection significantly strengthening its balance sheet.
"Beyond the short-term impacts from lockdowns, our long-term strategy remains unchanged. Product innovation, brand differentiation, a key focus on sustainability, and a step change in digital transformation, will enable us to continue answering the needs of our customers."
The company did not pay a final dividend.