Financial News

INTERIM RESULTS

16 NOVEMBER 2004

Burberry Group plc reports interim results for its first half to 30 September 2004.

Financial Highlights

  • Total revenues increased 14% on an underlying* basis to £347 million
    • Retail revenues increased 12% underlying
    • Wholesale revenues increased 13% underlying
    • Licensing revenue increased 31% underlying
  • Gross profit margin expanded from 55.6% to 58.6%
  • EBITA** increased 18% (22% underlying) to £78.8m
  • EBITA margin expanded from 20.8% to 22.7%
  • Diluted EPS before goodwill amortisation and exceptional gain increased 20% to 10.8p
  • Interim dividend increased 33% to 2.0p per Ordinary Share

Strategic and Operating Highlights

  • Retail expansion on track with opening of 3 stores and one concession
  • Completed important store renovations
  • Renewing selected licences in Japan
  • Burberry Brit for Men fragrance launched to outstanding consumer response
  • New fragrance licence to result in increased royalty rates and marketing commitment

Share Repurchase Programme

  • Burberry announces share repurchase programme

Summary of Results

Six months
to 30 September
% change
2004
£m
2003
£m
Reported
Underlying
Turnover347.5321.3
8
14
Operating profit before goodwill amortisation and exceptional gain (EBITA 78.866.9
18
22
Exceptional gain0.8-
-
-
Operating profit76.363.4
20
25
Profit after taxation52.3 41.9
25
29
Diluted EPS before goodwill amortisation and exceptional gain 10.8p9.0p
20
-
Diluted EPS 10.3p8.3p
24
-
* Underlying figures are calculated at constant exchange rates.
** EBITA represents profit before interest, taxation, goodwill amortisation and exceptional gain.

John Peace, Chairman of Burberry, commenting on the interim results: "In the context of out-performance since the July 2002 IPO, a strong balance sheet and attractive future growth opportunities, Burberry is announcing today a significant share repurchase programme designed to enhance the capital efficiency of the business and benefit all shareholders."

Rose Marie Bravo, Chief Executive, stated, "Burberry delivered a strong first half performance driven by the continued execution of our core strategies and the balance of our business across product categories, channels and regions. We were particularly pleased by the continued operating margin improvement, leading to a 20% EPS increase."

Management will discuss these results during a presentation to analysts and institutions at 1:00pm today at Merrill Lynch Financial Centre, The Auditorium, 100 Newgate Street, London EC1A 1HQ (telephone +44 (0) 20 7404 5959). The presentation will also be broadcast live on the Internet at www.burberryplc.com and can be accessed by telephone at +44 (0) 870 411 6989 (UK) and +1 800 890 8202 (US). Replay: +44 (0) 20 7081 9440, access number 020270.

Enquiries:

Burberry +44 (0) 20 7968 0577
Stacey CartwrightCFO
Matt McEvoy Strategy and IR
John ScaramuzzaStrategy and IR
Brunswick+44 (0) 20 7404 5959
Susan Gilchrist
Laura Cummings
Robert Gardener

View the full Interim Results Announcement in PDF format.


Adobe Reader icon and link to Adobe website (opens in a new window) To view PDFs you need the Adobe Reader. This program is available free of charge from the Adobe website.