Billabong reported a $25.7 million net profit for the six months to December, compared with a loss of $126.3 million in the previous period, as massive restructuring costs and asset writedowns that marred its results for the last three years came to an end.

Profit from continuing businesses, before one-off gains, more than doubled to $13.8 million from $6 million previously.

However, earnings before interest, tax, depreciation and amortisation from continuing operations before one-off items slipped 4.9 per cent to $42.81 million. Underlying EBITDA halved in the Americas, while Europe returned to profit and Asia Pacific earnings fell slightly.

Group revenues fell 19.2 per cent to $541.15 million, with sales falling in all three regions.

As expected, no dividend was declared.

The result exceeded market expectations. Analysts had forecast an underlying net profit around $7.3 million and earnings before interest, tax, depreciation and amortisation of $39 million on sales of $509 million.

"One year into the turnaround it's encouraging to see the group to return to profitability for the first time in three years," said chief execuitve Neil Fiske.

"There remains though significant operational reform to be undertaken."

Billabong was seeing positive signs of brand growth and improved margins in areas where it was concentrating its efforts, he said.

Mr Fiske hopes to reinvigorate sales and profit growth by investing in Billabong's three biggest brands – Billabong, RVCA and Element – and simplifying the business by reducing the number of products, cutting costs to build a marketing war chest, and improving Billabong's supply chain by moving to fewer, bigger suppliers.

Billabong is also moving away from multi-brand retailing in favour of ­single-brand bricks-and-mortar and online stores, emulating brands such as Kathmandu.

It has sold or closed about 30 per cent of its bricks-and-mortar stores and offloaded its 51 per cent stake in online surfwear retailer Surfstitch and wholly-owned site Swell last year, focusing instead on dedicated online sites for its core brands.

While the turnaround plan has yet to deliver earnings growth, Mr Fiske's mantra of "fewer, bigger, better" has struck a chord with investors.

Billabong shares have risen 56 per cent, from 41 cents to 64 cents, since Mr Fiske unveiled his plan in December 2013. However, they are a fraction of their pre-restructure high of $7.87.

Last financial year, underlying earnings from the Asia-Pacific business rose 8 per cent and losses narrowed in Europe, but earnings in the Americas halved, dragging the group's underlying earnings down 26 per cent to $52.5 million.

At the time, Mr Fiske blamed the drop in earnings on 18 months of "corporate turmoil" and vowed to make fixing the US, Canadian and Brazil businesses his priority.

Billabong endured more than 18 months of disruption in 2012 and 2013, fielding four takeover bids and two recapitalisation offers,  before agreeing to a $385 million debt-and-equity refinancing deal with US hedge funds Oaktree Capital and Centerbridge Partners in December 2013.