Consumer goods manufacturer Pacific Brands is up 14c to $1.34 – a jump of over 11%, as investors buy up stocks with strong exposure to a consumer recovery.
Pacific Brands is trading on a P/E ratio of less than 8 but having slipped as low as 13c in the last year, its share price volatility may have previously unnerved more skittish investors. Group results for 2009 showed a 10.3% EBITDA margin on revenues of $2,000M.
In the past 12 months, the company divested over 150 brands and renewed its focus on core brands, Bonds, Berlei, Sheridan, Hard Yakka and King Gee. Sales for these brands were far less affected by the economic downturn.
The company came under fire in 2009 for its decision to close some local manufacturing operations.
There was no final dividend declared for FY2009.