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Financial Highlights & KPIs

Revenue (Year to 31 March)
  

Revenue

Adjusted profit before tax (Year to 31 March)

Adjusted Profit

Adjusted diluted EPS (Year to 31 March)

Adjusted diluted EPS

Net cash
  

Net cash

Dividend per share (Year to 31 March)

Dividend per share

Capital expenditure (Year to 31 March)

Capital expenditure
KPI Performance
Revenue growth* This measures the appeal of the Burberry brand to customers, however its products are sold.  Revenue in FY 2016 declined by 1% at constant exchange rates, with retail revenue up 1%. Wholesale declined by 2% underlying while Licensing declined by 33% underlying, both in line with guidance.
Measure
Revenue
KPI Performance
Adjusted PBT growth*
Adjusted PBT growth is a key measure used by investors to assess the underlying performance of the Company.
Adjusted PBT in FY 2016 reached £421m, down 10% at constant exchange rates. Retail/wholesale operating profit at constant exchange rates was down 8% and licensing down 29% underlying.
Measure
Adjusted PBT growth
KPI Performance
Adjusted retail/wholesale return on invested capital (‘ROIC’)~
Adjusted retail/wholesale ROIC measures the efficient use of capital to deliver attractive returns on incremental investment, which is important given the Group’s investment in new projects. It is calculated as the post-tax adjusted operating profit divided by average operating assets over the period for the retail/wholesale segment.
Adjusted retail/wholesale ROIC in FY 2016 was 14.8% impacted by decline in operating profit and ongoing investment in the business including the evolution of the retail store portfolio.
Measure
Adjusted retail/wholesale ROIC
KPI Performance
Comparable sales growth
This measures the growth in productivity of existing stores. It is calculated as the annual percentage increase in sales from retail stores that have been open for more than 12 months, adjusted for closures and refurbishments and includes all digital revenue.
Comparable sales in FY 2016 were down 1%, with a mid single-digit percentage increase from EMEIA, unchanged in Americas and mid single-digit percentage decline in Asia Pacific.
Measure
Comparable sales growth
KPI Performance
Adjusted retail/wholesale operating margin
This measures how the business balances operational leverage and disciplined cost control, with thoughtful investment for future growth, building the long-term value of the brand.
Operating margin in FY 2016 was 15.4%, reflecting a modest benefit from gross margin expansion, offset by a mid single-digit percentage underlying increase in operating expenses.
Measure
Adjusted retail/wholesale operating margin
KPI Performance
Adjusted diluted EPS growth
Growth in EPS reflects the increase in profitability of the business and is a key valuation metric for Burberry’s shareholders.
Adjusted diluted EPS in FY 2016 was 69.9p, down 9%, reflecting a reduction in Group profit and a higher tax rate.
Measure
Adjusted diluted EPS growth

Adjusting items are those items which, in the opinion of the directors, should be excluded in order to provide a consistent and comparable view of the underlying performance of the Group’s on-going business. Generally this will include those items that are largely one-off and material in nature as well as income or expenses relating to acquisitions or disposals of businesses or other transactions of a similar nature, including the impact of changes in fair value of expected future payments or receipts relating to these transactions.

Year to 31 March
Revenue by channel
2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Retail
Wholesale
1,416.6
472.7
1,622.6
628.0
1,807.4
648.1
1,837.7
634.6
2,127.2
613.9
Retail/wholesale
Licensing
1,889.3
109.4
2,250.6
79.2
2,455.5
67.7
2,472.3
42.4
2,741.1
24.9
Total revenue 1,998.7 2,329.8 2,523.2 2,514.7 2,766.0

  

Profit by channel £m £m £m £m £m
Retail/wholesale 335.6 393.5 399.2 380.9 437.0
Licensing 92.5 66.8 56.0 36.9 21.7
Adjusted operating profit1 428.1 460.3 455.2 417.8 458.7

  

Segmental analysis 2013
%
2014
%
2015
%
2016
%
2017
%
Retail/Wholesale gross margin 70.6 70.2 69.2 69.6 69.6
Retail/Wholesale adjusted operating
expenses as a percentage of sales1
52.8 52.7 52.9 54.2 53.7
Retail/Wholesale adjusted operating margin1 17.8 17.5 16.3 15.4 15.9
Licensing operating margin 84.6 84.3 82.7 87.0 87.1

  

Summary profit analysis £m £m £m £m £m
Adjusted operating profit1     428.1 460.3 455.2 417.8 458.7
Net finance (charge)/income1 (0.3) 0.7 0.6 2.8 3.7
Adjusted profit before taxation1 427.8 461.0 455.8 420.6 462.4
Adjusting items (77.1) (16.6) (11.2) (5.0) (67.6)
Profit before taxation 350.7 444.4 444.6 415.6 394.8
Taxation (91.5) (112.1) (103.5) (101.0) (107.1)
Non-controlling interest (4.9) (9.8) (4.8) (5.1) (0.9)
Attributable profit 254.3 322.5 336.3 309.5 286.8

  

Retail/Wholesale revenue by product division £m £m £m £m £m
Accessories2 729.1 816.1 892.5 901.7 1,033.2
Womens 618.2 684.0 743.0 729.0 791.9
Mens 464.2 520.8 557.5 548.4 623.5
Childrens/Other 72.6 78.4 77.7 90.7 108.1
Beauty 5.2 151.3 184.8 202.5 184.4
Retail/Wholesale revenue by destination £m £m £m £m £m
Asia Pacific 745.3 870.3 938.1 932.9 1,069.0
EMEIA3 680.7 811.5 869.0 878.5 991.2
Americas 463.3 568.8 648.4 660.9 680.9

  

Financial KPIs 2013 2014 2015 2016 2017
Total revenue growth4 +8% +17% +11% -1% -2%
Adjusted PBT growth1,4 +13% +8% +7% -10% -21%
Adjusted retail/wholesale return on invested capital (ROIC)1 19.0% 19.6% 17.9% 14.7% 15.4%
Comparable store sales growth +5% +12% +9% -1% +1%
Adjusted retail/wholesale operating margin1 17.8% 17.5% 16.3% 15.4% 15.9%
Adjusted diluted EPS growth1 +14% +8% +2% -9% +11%

  

Year to 31 March
Earnings and dividends
2013
pence
per share
2014
pence
per share
2015
pence
per share
2016
pence
per share
2017
pence
per share
Adjusted earnings per share - diluted1 70.0 75.4 76.9 69.9 77.4
Earnings per share - diluted 57.0 72.1 75.1 69.4 64.9
Diluted weighted average number of ordinary shares (millions) 446.5 447.3 447.8 446.1 442.2
Dividend per share (on a paid basis) 26.0 29.8 32.9 35.7 37.3

Excludes the impact of adjusting items. 

The Accessories revenue for the year ended 31 March 2013 has been restated to exlcude Beauty retail sales.

3EMEIA comprises Europe, Middle East, India and Africa. As a result of an internal reorganisation, the Europe and Rest of World divisions were integrated to form EMEIA, effective from 1 April 2013. The results for the years ended 31 March 2012 and 31 March 2013 have been re-presented to reflect this organisational change.

4Growth rate is year-on-year underlying change, i.e. at constant exchange rates.

  

Year to 31 March
Net Cash Flow
2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Adjusted operating profit1 428.1 460.3 455.2 417.8 458.7
Restructuring spend (1.0) (0.7) - - (16.7)
Depreciation and amortisation1 111.2 123.7 123.7 132.2 144.0
Employee share scheme costs 24.9 25.4 21.0 (0.3) 13.1
Proceeds/(payment) on equity swap contracts - 15.7 (0.2) (1.6) -
(Increase)/decrease in inventories (39.2) (68.2) (15.1) (49.3) 8.4
(Increase)/decrease in receivables (32.0) (73.8) (43.8) (31.7) 19.7
Increase in payables and provisions 17.6 42.3 19.7 9.1 27.6
Other non-cash items 13.4 10.8 7.6 26.8 33.8
Cash flow from operations 

523.0

535.5

568.1

503.0

688.6

Net interest

0.9

0.8

1.2

3.1

3.7

Tax paid

(99.0)

(111.1)

(114.4)

(94.8)

(131.6)

Net cash flow from operations

424.9

425.2

454.9

411.3

560.7

Capital expenditure

(175.9)

(154.0)

(155.7)

(138.0)

(104.1)

Proceeds from disposal of non-current assets

3.0

1.3

0.5

8.5

Free cash flow

249.0

274.2

300.5

273.8

465.1

Payment to terminate licence relationship

(144.1)

Capital contributions from JV partners

0.4

0.7

0.4

Acquisitions

(1.0)

(2.6)

(3.4)

(68.8)

Dividends

(113.5)

(130.7)

(145.3)

(158.4)

(164.5)

Other

(45.3)

(21.8)

(16.4)

(8.7)

(108.9)

Exchange difference

12.8

(13.9)

13.9

1.4

26.0

Total movement in net cash

(41.7)

105.9

149.7

108.1

148.9

Net cash         296.6 402.5 552.2 660.3 809.2

  

As at 31 March
Balance Sheet
2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Intangible assets 210.2 195.4 193.5 189.6 170.1
Property, plant and equipment 409.1 398.4 436.5 426.2 399.6
Inventories 351.0 419.8 436.6 486.7 505.3
Trade and other receivables 199.5 273.7 320.8 351.9 352.0
Trade and other payables (447.8) (507.2) (523.1) (501.9) (561.0)
Taxation (including deferred taxation) 45.3 47.4 68.6 56.4 83.7
Net cash 296.6 402.5 552.2 660.3 809.2
Other net assets (11.1) (22.0) (33.6) (48.3) (61.1)
Net assets 1,052.8 1,208.0 1,451.5 1,620.9 1,697.8

  

Reconciliation of adjusted Retail/Wholesale ROIC 2013
£m
2014
£m
2015
£m
2016
£m
2017
£m
Retail/Wholesale adjusted operating profit1
Adjusted effective tax rate
335.6
25.8%
393.5
24.7%
399.2
23.4%
380.9
24.7%
437.0
25.8%
Retail/Wholesale adjusted operating profit after tax1 249.0 296.3 305.8 286.7 324.3
Net assets excluding licensing segment assets 1,048.6 1,202.2 1,448.9 1,617.4 1,694.2
Net cash (296.6) (402.5) (552.2) (660.3) (809.2)
Assumed lease assets 2,3 713.0 782.5 922.0 1,101.0 1,197.0
Exclude adjusting items:
  Licence intangible asset
  Put option liability
  Deferred consideration
  Restructuring liabilities

(70.9)
55.0
-
1.9

(56.0)
51.3
-
1.5

(41.1)
54.4
-
0.8

(26.1)
45.8
-
-

-
-
34.7
9.9
Adjusted operating assets
Average operating assets
1,451.0
1,309.2
1,579.0
1,515.0
1,832.8
1,705.9
2,077.8
1,955.3
2,126.6
2,102.2
Adjusted Retail/Wholesale ROIC 19.0% 19.6% 17.9% 14.7% 15.4%

1 Excludes the impact of adjusting items.
2 Assumed operating lease assets and assumed operating lease debt are calculated as a factor of five times minimum operating lease payments, excluding the impact of charges and subsequent utilisations relating to onerous lease provisions. Net charges for onerous lease provisions during the year ended 31 March 2017 were £7.9m
(2016: £20.1m) and £8.3m of existing onerous lease provisions were utilised (2016: £5.0m).
3 Assumed operating lease assets as at 31 March 2016 have been restated to adjust for the impact of utilisation of existing onerous lease provisions.