Directors of Gold Coast company Billabong quizzed on digital strategy at annual general meeting

BURLEIGH surf icon Billabong has posted a $77 million loss — but there’s better swell on the horizon. Can this strategy save the Gold Coast business?

Shareholders Adene Patton and Mia Jay at Billabong's annual general meeting. Picture Glenn Hampson

IF the Gold Coast’s iconic surf brand Billabong wants to paddle from the rocks to the rising swell, it will have to win over people like shareholder Mia Jay — and she was quick to tell the company so at yesterday’s annual general meeting.

Four years into the company’s turnaround strategy, shareholders heard it had posted a $77.1 million net loss despite growth in both the American and European markets.

CEO Neil Fiske said the company hit headwinds with increased product costs due to currency changes and a shift in the retail landscape.

“By no means are we satisfied with our results,” he told the meeting.

“But I want to be clear: the fundamental changes we sought are taking hold and showing improvements in the core of the business.”

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Billabong CEO Neil Fiske. Picture: Glenn Hampson

Ms Jay brought her young family from Sydney to the Gold Coast for her first AGM since buying shares in the company at around 50 cents each because she is “passionate about Billabong”.

She asked for a breakdown on the company’s touted 36 million social media following, given she could see fewer than six million followers between Facebook and Instagram, and wanted to know why there were relatively few likes and comments on Billabong posts.

“What’s the strategic plan for social marketing to improve that engagement?” she said.

Ms Jay had hit upon what Mr Fiske calls the company’s “secret sauce”, a strategy of data-gathering so it can better target customers with products they’re likely to actually buy.

The company’s 36 million followers are attached to its three core brands — Billabong, Element and RVCA — as well as their paid athletes and influencers.

Billabong's annual general meeting at its West Burleigh HQ. Picture Glenn Hampson

It hopes to use this reach to grow its direct market driving enhanced online sales — it launched Surf Dive N Ski website as a global e-commerce platform last week.

“We’re really just getting started tapping into that potential,” Mr Fiske said after the AGM.

“We have the tools there to listen, we can identify them, we can see what their interest and affinity is with the brand.

“We have a third-party database marketing firm that we work very closely with and it’s kind of our secret sauce. As long as we control the connection to our customer, we have control over our future.”

Billabong Shareholders Adene Patton and Mia Jay, who posed a pertinent question at the annual general meeting. Picture Glenn Hampson

Ballina-based shareholder Adene Patton has been waiting for a decent set since she shelled out $7.50 a share in the heady days before 2013, when the sandbank collapsed and dragged the price below the mud to 13 cents.

She was among the shareholders who quizzed the board on speculation Billabong was looking to buy a competitor like Rip Curl or SurfStitch. She left without a definitive answer.

“Our responsibility is to consider every opportunity that may generate value for shareholders,” replied chairman Ian Pollard.

“We don’t rule things in or out.”

Shares were trading up after the AGM yesterday, finishing at $0.74 after closing at $0.61 cents on Monday.