Financial News
2003/04 PRELIMINARY RESULTS
24 MAY 2004
Burberry Group plc reports preliminary results for its financial year ended 31 March 2004.
Financial Highlights
- Total revenues increased by 15% on an underlying* basis, 14% reported
- Retail sales up 15% underlying, 13% reported
- Wholesale sales increased 14% underlying, 14% reported
- Licensing revenue up 18% underlying, 15% reported
- Retail sales up 15% underlying, 13% reported
- Gross profit margin increased from 56.0% to 57.9%
- EBITA** margin expanded from 19.7% to 20.9%
- EBITA increased by 21% to £141.2 million
- 28% increase in diluted EPS (before goodwill amortisation, exceptional gain and IPO related charges) to 19.1p
- Strong cash generation reflects profitability and working capital efficiencies
- 50% increase in final dividend to 3.0p per ordinary share (4.5p for full year)
*Underlying figures are calculated at constant exchange rates and exclude the impact of the July 2002 acquisition of the operations of Burberry's distributor in Korea (the 'Korea acquisition').
**EBITA represents operating profit before interest, taxation, exceptional items and goodwill amortisation.
Strategic Highlights
- Elevated design content and cohesion across product ranges
- Launched iconic Burberry Brit fragrance to strong consumer response
- Opened 9 new directly operated stores with important additions in all regions
- Strengthened wholesale distribution across markets
- Extended reach in emerging markets with franchise store and concession openings in China, Russia and the Middle East
- Enhanced brand management activities in Japan
Summary of Results
| Year ended 31 March 2004 | Year ended 31 March 2003 | |||
| As reported £m | Before IPO related charges £m | IPO related charges(1) £m | As reported £m | |
| Turnover | 675.8 | 593.6 | - | 593.6 |
| Operating profit before goodwill amortisation and exceptional gain (EBITA) | 141.2 | 116.7 | - | 116.7 |
| Exceptional gain | 2.2(2) | - | - | - |
| IPO related charges | - | - | (22.0) | (22.0) |
| Operating profit | 136.6 | 110.3 | (22.0) | 88.3 |
| Profit after tax | 91.5 | 69.5 | (17.3) | 52.2 |
| Diluted EPS before goodwill amortisation, exceptional gain and IPO related charges | 19.1p | 14.9p | (3.4p) | 11.5p |
| Diluted EPS | 18.1p | 13.7p | (3.4p) | 10.3p |
(1) The charge of £22.0m for IPO related items consists of the exceptional charge in connection with the grant of awards under the Restricted Share Plan and associated national insurance liability, together with the cost of gift of shares to employees under the All Employee Share Plan and other IPO costs.
(2) The £2.2 million exceptional gain relates to lapsed awards and the reversal of associated charges with respect to the Restricted Share Plan.
John Peace, Chairman of Burberry, commenting on the preliminary results: "2003/04 marks another successful year for Burberry. The strength of the business in the context of this year's challenging trading environment highlights the vibrancy of the Burberry brand and the dedication and talents of its management team."
Rose Marie Bravo, Chief Executive, stated: "This has been a terrific year for Burberry. The Group achieved 28% EPS growth on a 14% revenue gain backed by double digit growth in each of our businesses. With a favourable response to date to our autumn/winter 2004 merchandise, we look ahead to the current financial year with confidence. My thanks go to the management team which continues to deliver on our goals both strategically and financially."
Management will discuss these results during a presentation to analysts and institutional investors at 1:30pm today in London at the Merrill Lynch Financial Centre, The Auditorium. The presentation will also be broadcast live on the Internet at www.burberryplc.com and can be accessed by telephone at 0845 245 3471 (UK) and 706 634 5500 (US). The webcast and telephone call will be available for replay. Telephone replay: +44 (0) 1452 55 00 00, Replay Access Number 1417840#.
Enquiries:
| Burberry | ||
| Stacey Cartwright | CFO | 020 7968 0577 |
| Matt McEvoy | Strategy and IR | |
| John Scaramuzza | Strategy and IR | |
| Brunswick | ||
| Susan Gilchrist | 020 7404 5959 | |
| Sophie Fitton |
(Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward looking statements.
This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares. Past performance is not a guide to future performance and persons needing advice should consult an independent financial adviser.
View the full Preliminary Results Announcement in PDF format.
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