Demand for iconic undies brand Bonds has boosted Pacific Brands to its first full year profit in three years.

Pacific Brands reported net profit of $73.8m for the year to June 30 after posting a loss of $450.7m the year before.

The underwear division was the force behind the profit result, with earnings rising to $78.1m following a loss of $330.03m in the previous year.

Pacific Brands chief executive John Pollaers described Bonds as the “operational highlight” adding that the brand has benefited from a rise in advertising and new products such as Bonds Collectibles. Sales in the company’s underwear division have increased by 5%.

On Sunday Bonds released a new television ad for its Bonds Lacies product. The ad (below) by Clemenger BBDO Melbourne shows women dancing in the colourful lacies.

The ad features professional dancers and was shot in Melbourne under the direction of choreographer Leah Howard. The campaign also includes digital, point of sale, and outdoor ads featuring Elvis Presley’s granddaughter Riley Keough. The outdoor work was created by Sydney’s ARC Factory.

The agency said the latest range is aimed at young females who want to wear “femme lace, but with the fun Bonds bring to it”.

Meanwhile, Pacific Brands – which includes Sheridan, Hard Yakka, Voodoo and Superdry among others – said the financial year ahead looks tough with challenges presented by consumer and business confidence.