By  on August 24, 2010

SYDNEY — Billabong International Ltd. plans to inject cash into new acquisition Rvca and move the California-based skate and lifestyle brand from a licensee operation to direct sales in 2011.

Billabong, which reached a conditional agreement to buy Rvca on July 12, said it will make a “significant investment” in the brand to maximize its long-term potential. The company said there has been strong retail interest in Rvca, particularly in Europe, where it has a low profile. Rvca generates an estimated $50 million in annual revenues.

The company also said it has made several other acquisitions.

Billabong has reached a conditional agreement to buy the 36-door Australian retail chain Rush Surf and recently acquired Becker Surf and Sport in the U.S., Bay Action in Australia, an interest in Australia’s leading online surf retailer and, via a joint venture, another Australian retail chain called Surfection.

The company reported a net profit after tax of 146 million Australian dollars, or $129.6 million, for the 2010 financial year, down 4.5 percent compared with the previous year. Total group sales of 1.48 billion Australian dollars, or $1.31 billion, were flat in constant currency terms. The company attributed the result to the volatile consumer environment, compounded by a strong Australian dollar. Conditions improved in the second half in its U.S. and European markets, while the Australian business deteriorated.

Billabong is forecasting net growth of 2 to 8 percent in the 2011 financial year.

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