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Rip Curl's singular focus on surfing drove profits more than 26.3 per cent higher in 2014-15.Credit:ASP

Almost 60 per cent of Rip Curl's sales come from overseas markets,which are increasing at a much faster rate than the"mature"Australian segment.

Sales in North America have increased by between 10 per cent and 15 per cent in the past six to eight years and the surf brand has reaped similar growth rates in Indonesia and Thailand.

"We were up over 15 per cent in south-east Asia last year,so that's a good core market for us,"Mr Daly said.

Rival surf brand Quiksilverfiled for bankruptcy in September and Billabongreported its first profit for 2014-15 after four years of losses.

By comparison,Rip Curl's full-year profit before tax increased by 7.4 per cent to $28.9 million. However,its net profit after tax was flat at $23.3 million,thanks to the generous payouts of shareholders,including dividends,special dividends and a share buyback.

Different market segments

Mr Daly said the split between technical surfing equipment and apparel provided Rip Curl with exposure to two quite different market segments.

Rip Curl invests heavily in pro surfers,as well as events to keep the brand on centre stage with the sport's best performers.

It sponsors the world No 1 men's surfer Mick Fanning,as well as the 2014 world champion Gabriel Medina,of Brazil.

Mr Daly said this investment was a cornerstone of its business and essential to safeguard its brand strength and continued expansion.

"We see ourselves as a core surfing company,so it's paramount for us that we have the world's best surfers on our team and the world's best events. That's a key position for us in the market."

The company was a strong performer in women's apparel in financial 2015,particularly in the northern hemisphere in swimwear.

"Our wetsuit business also continues to be very strong as well. Anywhere where we are ... making the best products for surfers and where we are doing that and doing that well it's definitely showing in our results,"Mr Daly said.

Key differentiator

"And that's a key differentiator for us compared to other people in the market. That's where we focus. It's our core purpose and it's proving very successful for us."

The surf group's retail chain represents less than half its business but Mr Daly said it was still expanding this network when the right opportunities came up.

"Where we feel our brand is under-represented,whether it's a key beach or key city or key iconic surf location,where we feel we need stronger presence we will certainly put a store in,"he said.

"We just opened a store in Santa Cruz and we just opened in Miami. We generally stay away from shopping malls ... our key focus is on those iconic surf-tourist locations."

Accelerating expansion through acquisitions is not on the radar now but Mr Daly said the group would look at opportunities as they arose.

Retail