2006/07 PRELIMINARY RESULTS |
24 MAY 2007
24 May 2007. Burberry Group plc reports preliminary results for its financial year to 31 March 2007.
Summary of Results
| Year to 31 March | |||
| 2007 £m | 2006 £m | Change % | |
| Turnover | 850.3 | 742.9 | 14 |
| Adjusted EBIT(1) | 185.1 | 165.6 | 12 |
| Operating profit | 157.0 | 154.5 | 2 |
| Attributable profit for the year | 110.2 | 106.4 | 4 |
| Free cash flow | 84.8 | 61.8 | 37 |
| Adjusted diluted EPS(1) | 29.1p | 24.1p | 21 |
| Dividend per Ordinary Share | 10.5p | 8.0p | 31 |
| Diluted EPS | 24.7p | 22.3p | 11 |
| Diluted weighted average number of Ordinary Shares | 446.1m | 477.6m | (7) |
Financial Highlights
- Total revenue increased 15% on an underlying(2) basis to £850.3 million
− Retail revenue increased 24% underlying, on a 12% comparable store gain
− Wholesale revenue increased 8% underlying
− Licensing revenue increased 10% underlying - Adjusted EBIT increased 12% to £185.1 million
− a 17% increase at constant exchange rates - Adjusted retail/wholesale EBIT margin of 14.6% vs 14.5% in prior period
− total adjusted EBIT margin of 21.8% vs 22.3% in prior period
− movement reflects reduced licensing share of revenue - Adjusted diluted EPS increased 21% to 29.1p
- Sharp acceleration in revenue, adjusted EBIT and EPS growth relative to prior year
- Continued strong free cash flow with £85 million generated in the year
- Final dividend of 7.625p per Ordinary Share proposed
− 10.5p for full year, a 31% increase - Bought 12.3 million shares at cost of £62 million during the year as part of ongoing repurchase programme
(1) “Adjusted” refers to profitability measures calculated before Atlas and plant closure costs:
− Atlas costs of £21.6 million (2006: £11.1 million) relate to the Group’s infrastructure redesign initiative announced in May 2005.
− Plant closure costs of £6.5 million relate to the closure of the Treorchy manufacturing facility in March 2007.
(2) Underlying figures exclude the financial effect of the Taiwan acquisition and the portion of Burberry’s business in Spain affected by the retail conversion, in both reporting periods. In addition, underlying figures are calculated at the same exchange rates used in the 2005/06 year’s reported results for the period. Burberry completed the acquisition of the operations and assets of its distributors in Taiwan in August 2005 (the “Taiwan acquisition”) and initiated actions related to the retail conversion in Spain during the third quarter of 2005/06.
Strategic and Operating Highlights
- Enhanced consistency of brand presentation
− Centralised design and creative direction in London
− Synchronised marketing programme - Progressed primary product strategies
− Outstanding outerwear performance driven by product innovation
− Strong consumer response to luxury handbag initiatives
− Launched new eyewear collection - Advanced retail programme
− Opened 12 stores, one replacement store, a net 13 concessions and three outlets
− Accelerated pace of expansion to 13% average underlying selling space growth (from 8% in 2005/06)
− Retail now largest distribution channel with 48% share of revenue - Revitalised wholesale channel
− strong growth across North America, Europe, Asia and emerging markets - Achieved near-term operational objectives
− Project Atlas successfully completed initial SAP implementations, and on schedule for major deployments in 2007/08
− Initiated development of integrated global supply chain - Celebrated Burberry’s 150th anniversary
Commenting on the results Angela Ahrendts, Chief Executive, stated, “With a 21% increase in adjusted EPS on a 15% underlying revenue gain, our 150th anniversary was an outstanding year for Burberry. On the strategic front, we advanced the luxury component of the brand, accelerated retail expansion and continued to evolve the operating model. We face the current year with confidence, given the strength of our brand, effectiveness of our strategies and talent of our teams around the world.”
Management will discuss these results during a presentation to analysts and institutions at 1:00pm today at Merrill Lynch Financial Centre, The Auditorium, 2 King Edward Street, London EC1A 1HQ (telephone +44 (0) 20 7968 0577). The presentation will also be broadcast live on the Internet at www.burberryplc.com and can be accessed by telephone at +44 (0) 20 7081 7194 (UK and International) and +1 866 432 7186 (US). Replay: +44 (0) 20 8196 1998 (UK and international) and +1 866 583 1035 (US), access number 299766#.
Enquiries
| Burberry | 020 7968 0577 | |
| Stacey Cartwright | CFO | |
| Matt McEvoy | Strategy and IR | |
| Brunswick | 020 7404 5959 | |
| David Yelland | ||
| Laura Cummings | ||
| Robert Gardener |
