Good morning, ladies and gentlemen. It is now 11:00 A.M., the appointed time for our meeting. My name is Harry Hodge, and I'm Chairman of Globe International Ltd. I'd like to welcome you to the 2025 Annual General Meeting of Globe International Ltd., which is being held as a virtual meeting, and thank you for your attendance. I note that a quorum is present, and I declare the meeting open. Before proceeding with the business of the meeting, I'd like to introduce my fellow Directors and senior executives who are joining us from Melbourne for our meeting today: Peter Hill, Director; Stephen Hill, Director; Chief Executive Officer, Matt Hill; Chief Financial Officer, Karen Brown; Company Secretary, Samantha Cook. Also joining us from Melbourne is the PwC partner responsible for our audit, David Paterson.
As Chairman, it is my intention to conduct an online poll on all resolutions to be put to the meeting using the electronic voting cards. I will call on Mr. Timothy Farag of MUFG Corporate Markets to conduct the poll when each of the resolutions is put to the meeting. Shareholders can cast their vote as long as their registration has been validated. To validate registration, you'll be asked to enter your security holder reference number or holder identification number, plus the postcode if you're in Australia or the country if you're outside Australia. To then cast your vote, click the "Get Voting Card" button. Shareholders have been given the opportunity to submit questions prior to the meeting and will also be given an opportunity to ask questions during the meeting.
To ask a question during the meeting, click on the "Ask a Question" button, and from this point, questions can either be submitted in writing or verbally by selecting the "Go to Web Phone" options. Please note, only shareholders and proxy holders may ask questions in the meeting once they have been verified. I do encourage shareholders who have questions to submit them as soon as possible. If you have any trouble using the platform, please check the virtual meeting online guide that was distributed with the notice of meeting or contact the helplines shown on the screen. The notice of meeting has been made available to all members, and with your agreement, I propose to take it as read. In response to the notice of meeting, the company has recorded valid proxies nominating Directors and others to represent shareholders.
I will advise you of the number of votes for and against each of today's resolutions at the time each resolution is put to the meeting. I can confirm the minutes of our last Annual General Meeting held on October 22nd, 2024, have been signed as a correct record. Prior to considering item one on today's agenda, I would like to address you briefly. I will then invite Matt Hill, our CEO, to address you as well. Globe International is proudly a founder-led business based on our original guiding principles to stay true to our roots, remain hardcore, and be adaptive in our evolving world. Globe
has a deep heritage throughout the industry as one of the pioneering businesses to merge action sports culture, culture of skate, surf, and snow, while using that foundational base to adapt and evolve over 40 years of business to the multifaceted company we are today, operating in board sports, workwear, outdoor, and fashion streetwear markets. As I said in my Chairman's letter, we remain committed to growth, meeting the evolving needs of our customers while maintaining our focus on profitability, delivering value to our shareholders. In 2025, brand highlights included the growth of our global strategic brands, FXD, Salty Crew, and Globe Footwear. Profitability of the business remains strong as a result of all three operational entities in Australia, North America, and Europe contributing to group profitability. As a result, we have announced a significant final dividend payout for the 2025 financial year, returning $8.2 million to shareholders.
This will mark our 10th anniversary of paying a dividend every half year, translating into 20 consecutive dividends. This achievement in a difficult global consumer market is a testament to the entire team's expertise, passion for our brands, led by the Board of Directors, the CEO, and a management team that are aligned, emotionally invested, and have the business acumen to guide each of our brands to profitability. Globe is one of the few companies in the action sports industry with active founders still committed to the company and helping preserve the entrepreneurial culture of the company for the next generation of leaders. I would like to thank my fellow directors, Peter and Stephen Hill, our CEO, Matt Hill, the management team, and each of our employees around the world for their dedication and commitment.
I would also like to acknowledge the support of our customers and shareholders and look forward to speaking with you at the AGM or any other occasion when we meet. I'll now hand you over to our CEO, Matt Hill.
Thanks, Terry, and good morning, everyone. 2025 was another successful year for Globe International and our shareholders. Amidst a tumultuous year of geopolitical and economic uncertainty, Globe maintained strong financial stability, progressed our key strategies for growth of our core brands, and most importantly, continued strong returns to our shareholders. To that end, the company posted revenue of just over $205 million and an EBIT of $14.6 million, which supported issuing fully franked dividends totaling $0.20 per share for the 2025 financial year. In addition, our brand mix was further refined as we looked to focus on our global core brands as well as fresh emerging brands, while proactively culling non-strategic brands in the portfolio. In 2025, we discontinued several non-strategic brands while focusing on and achieving growth in our core brands of FXD, Salty Crew, and Globe Footwear.
From a geographic perspective, all three major regions contributed positively to our bottom line. Australia continued to be our strongest performer despite facing a tougher retail environment and reduced revenue due to the discontinuation of certain brands. North America performed well despite the challenges of the new tariff charges on imported goods into the U.S.A. Management moved swiftly in North America to address the negative impact of the tariffs, which were felt in the last quarter of FY 2025 and are expected to impact the first half of FY 2026. It is anticipated that the proactive management efforts made by management will mean that the negative impact of tariffs on margins in the U.S.A. will be fully mitigated by the second half of FY 2026. Finally, Europe again posted a profitable year while completing the operational overhaul required in the region, setting the foundation for further growth in FY 2026.
Brand highlights for FY 2025 included the growth of FXD, Salty Crew, and Globe Footwear, as well as progress in emerging brands, XDMG Workwear, and Zayed Eyewear. We also saw the launch of two new brands, S Double Clothing and Ritual Vision Eyewear. In short, we delivered in a year that saw immense global change and uncertainty. We stayed on track to execute on our brand strategies and implemented necessary regional changes, all while maintaining financial stability and continuing to deliver solid financial returns to our shareholders. Looking ahead to the current financial year, following the first quarter of trade that saw revenue growth and a profitable quarter, we expect downward pressure on margins in the first half of the current financial year in the U.S.A. and then a return to growth in margins in the second half of the financial year.
During the year, we expect to continue growing our global core brands and to improve profitability and revenue of those brands around the world. In addition, we'll continue to invest in our newer emerging brands. Globe now has a 40-year track record for successfully developing brands. Over our many years of operation, we continue to move with the changing markets to maintain a portfolio of relevant and lucrative brands, all while delivering shareholder returns. This is a record we look forward to continuing to expand upon in the coming decade. Finally, in closing, as always, I'm grateful for the efforts of our global teams and proud of the commitment, hard work, and creativity of our teams. I'd like to thank the Board for their support and, of course, the shareholders. Thank you for your continued support of Globe International
and belief in our brands and the future potential of the company. Thank you.
Thank you, Matt. I will now move to the formal business of the meeting. The first item on the agenda is to receive and consider the financial report, including the financial statements and the Directors' Declaration for the year ended 30 June 2025, and the related Directors' Report and Auditor's Report. As previously noted, our auditor, PwC, is represented at the meeting today by Audit Partner, Mr. David Paterson. Mr. Paterson has undertaken to respond to questions relevant to the conduct of the audit, the preparation and content of the Audit Report, the accounting policies adopted by the company in relation to the preparation of the financial statements, and the independence of the auditors in relation to the conduct of the audit. Please ensure that you restrict any questions of the auditor solely to these matters. Moderator, are there any questions for Mr. Paterson?
There are no questions.
There being no questions for the auditor, we will move on to the questions regarding the financial report, the Directors' Report, and the financial performance of the company. Moderator, are there any questions?
There are no questions.
There being no questions, I note the financial report for the 2025 financial year has been received and considered. I will now proceed to the next part of the meeting relating to the resolutions. The next item of business, being resolution number one, concerns the adoption of the remuneration report contained in the directors' report. The vote on this resolution is advisory only and does not bind the directors or the company. I would like to note that under the Corporations Act, all key management personnel and closely related parties are prevented from voting on this resolution. With nearly 71% of Globe shares being held by its founding directors and senior management, this means that only 29% of Globe shareholders are eligible to vote on this resolution regarding the remuneration report.
As votes are determined on the poll, it only takes a small number of shareholders who hold larger share parcels to vote against the resolution in order for it to pass. This year, Globe's strike count has been reset, meaning that should more than 25% of the eligible shareholders vote against this resolution, the company will receive its first strike. Moderator, are there any questions in relation to the remuneration report?
There are no questions.
There being no questions, I will move to the proxy results for this resolution. Proxies received for this resolution are 1,021,076 votes in favor, 984,507 votes against, 112,075 votes left open, nominating the Chairman, and 420,245 votes left open for nominating others. I advise that I intend voting all open proxies, nominating the Chairman for the resolution. You may now vote online. Please select for, against, or abstain for resolution one on the electronic voting card. Voting will remain open for five minutes after the adjournment of the meeting. I will now move to the next item of business. The second item of business is resolution two concerning the reelection of Director of Globe International Ltd. in accordance with the company's Constitution. This resolution is as follows: that Mr.
Stephen Hill, who retires by rotation in accordance with Article 64 of the company's Constitution, be eligible to be reelected as a director of the company. The directors recommend that Mr. Stephen Hill be reelected. Moderator, are there any questions in relation to the reelection of Mr. Stephen Hill?
There are no questions.
There being no questions, I will move to the proxy results for this resolution. Proxies received for this resolution are 30,403,087 votes in favor, 966,363 against, and 407,779 votes left open for nominating the Chairman, and 428,245 votes left open for nominating others. I advise that I intend voting all proxies, nominating the Chairman for the resolution. You may now vote online. Please select for, against, or abstain for resolution two on the electronic voting card. Voting will remain open for five minutes after the adjournment of the meeting. Once finalized, shortly after this meeting, the results of online polls conducted today will be lodged with the ASX. This concludes the formal business of the meeting, but before closing the meeting, I'd like to address any general business questions. Moderator, are there any general business questions?
Yes, we have one business question. The question is, have the presentation and features for this meeting been submitted to the ASX? I cannot find them on the website, Globe's website, or my broker's website. I'll confirm that that will be lodged imminently post this meeting along with the final results.
Thank you, Company Secretary.
There are no further questions.
There being no further questions or items on the agenda, that concludes the meeting for today, and I thank you for your time.