2008/09 Preliminary Results
Burberry Group plc, the global luxury company, today announces its results for the year ended 31 March 2009.
Total revenue of £1,202m, up 21%
- Exceeds £1bn for first time
Adjusted profit before tax of £175m
Rapid actions taken in challenging markets
- Executed £50m global cost efficiency programme
- Reduced inventory by £50m at constant exchange rates
- Tight focus on cash, with net cash at year end of £8m
(2008: net debt of £64m)
Full year dividend maintained at 12p per share
Angela Ahrendts, Chief Executive Officer, commented:
“2008/09 was one of the most challenging years the luxury sector has ever faced, especially in the second half. Against this background, Burberry grew revenue to £1.2bn.
We also took rapid action to mitigate the impact of the economic slowdown, aggressively reducing inventory, executing a £50m global cost efficiency programme, resulting in a strong financial position and operating profit in line with guidance. We continued to refine and implement our key brand strategies, adding innovation to core outerwear and accessories, while making significant progress on our IT and operational initiatives.
Entering the new year, we believe Burberry is best positioned to capitalise on opportunities which will deliver sustainable long-term growth.”
Retail revenue up 14% underlying
- Now over half of total group revenue
- Net 16 mainline stores opened; store renovations continued
- Net 22 department store retail concessions opened
Wholesale revenue up 2% underlying
- Increased penetration in US department stores (7% of Group sales)
- Continued strong growth in Emerging Markets
- Supply chain enabled improved product flow and deliveries
All product categories delivered underlying revenue growth
- Non-apparel up 12% - now 33% of sales
- Womens apparel up 6%; mens up 5%; outerwear over 50% of apparel
- Childrenswear up over 50%
Continued transformation of back-of-house operations
- SAP now live in 15 countries
- Supply chain and logistics gains achieved
- Global planning facilitated improved inventory management
Global cost efficiency programme well advanced to deliver about £50m annual savings
- £15-20m from supply chain and corporate processes
- £30-35m from cost reduction initiatives
Total revenue of £1,202m (2008: £995m)
- Up 21% reported
- Up 7% underlying
Adjusted profit before tax of £175m (2008: £200m)
Adjusted diluted earnings per share of 30.2p (2008: 31.6p)
After restructuring costs associated with the cost efficiency programme, non-cash impairment charges mainly in Spain and one-off tax credits, attributable loss was £6m
Full year dividend maintained at 12p per share
Inventory down year-on-year by 19% or £50m at constant exchange rates
Net cash of £8m at year end (2008: net debt £64m)
New banking agreement, giving £260m facilities which run to 2011 and 2012
“Adjusted” refers to profitability measures (pre and post tax) calculated excluding:
- Restructuring costs of £54.9m (2008: nil) relating to the Group’s cost efficiency programme.
- Impairment charges of £129.6m (2008: nil) relating to Spanish goodwill (£116.2m) and stores (£13.4m).
- Credit of £1.7m (2008: nil) representing negative goodwill on the formation of the Burberry Middle East joint venture.
- Impact of one-off tax credits of £32.6m (2008: nil).
- Net charge of £7.9m (2008: net profit of £15.1m) relating to the relocation of global headquarters.
- Atlas costs of nil (2008: £19.6m) relating to the Group’s infrastructure redesign initiative.
Underlying change is calculated at constant exchange rates.
Certain financial data within this announcement have been rounded.
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.
|Burberry||020 3367 3524|
|Stacey Cartwright||EVP, Chief Financial Officer|
|Fay Dodds||Director of Investor Relations|
|Brunswick||020 7404 5959|
There will be a presentation today at 9am (UK time) to investors and analysts at the Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. The presentation can be viewed live in the Results and Presentations section of this website and can also be accessed live via a dial-in facility on 44 (0)20 7081 7194. The supporting slides and an indexed replay will also be available on the website later in the day.
Burberry will update on trading on 15 July 2009 when it will issue its Interim Management Statement in respect of the First Quarter. The AGM will be held on 16 July 2009.
View the full Results in PDF format.