Home > Pac Brands to lift prices after first half $219 million loss

Pac Brands to lift prices after first half $219 million loss

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Pacific Brands has said that it expects difficult conditions to continue following a first-half after-tax loss of $219 million.

The Australian reports that the result up to December 31 last year saw growth in the Bonds and Sheridan brands, helping the group's sales rise 2.7 per cent to $656.3 million.

However, the result was affected by writedowns worth $255 million and restructuring costs worth $11 million.

The company's workwear division has been suffering under rising unemployment and the downturn in mining, and is being restructured. It is also restructuring its Brand Collective division.

AAP reports that the company is negotiating with retailers to increase prices.

"At the moment we are putting through price increases in the order of five to 10 per cent to make sure we are moving with the currency change," the wire service reported CEO John Pollaers as saying.

"Frankly, I think the business and the industry will need to get used to the notion of annual price increases for the next couple of years to make sure we fully address this."

Image: findlogo.net


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