We will inspire customers and strengthen the emotional connection with purposeful, authentic luxury storytelling, while leveraging our strong network of communities and influencers to amplify our brand.
Our vision is to be the leading British luxury brand, delivering sustainable, high-quality growth and value for our stakeholders and communities.
We are committed to continuing to build not only a financially stronger Burberry but also a better company. We will fuel the creativity of our people by championing diversity, equality and inclusion, and supporting their wellbeing.
We will empower young people in our communities, providing more of them with the skills, confidence and opportunities to succeed. We will create a more sustainable future for luxury by further reducing our environmental impacts and helping transform our industry.
Read about ESG on pages 60 to 91 and our Sustainability Bond on 92 to 93 of the Annual Report for more information.
Our framework for long-term value creation centres around three major pillars: revenue growth, adjusted operating profit margin accretion and capital efficiency.
Burberry operates in the luxury goods sector, where industry growth tends to deliver ahead of overall annual global Gross Domestic Product (GDP) growth. Our ambition, in the medium term, is to drive towards high single-digit top-line growth (from FY 2019/20 base at constant currency), driven by over performance of full-price sales. Revenue growth will be enabled by our strategy, leveraging the strong product offer we have established over the past few years, maintaining our focus on outerwear and leather goods and accelerating and strengthening our position in all key markets.
Burberry generated an adjusted operating profit margin of 16.9%, an increase of 50bps from FY 2019/20. In the medium term, our ambition is to deliver meaningful adjusted operating profit margin improvements (at constant currency). There are two significant factors underpinning our ambition:
Leverage the fixed and semi-fixed cost components of our operating expenses.
Our current cost-saving programmes have delivered £185 million annualised cost savings in FY 2020/21. This was achieved by driving simplification and efficiency throughout our organisation, including optimising back-office functions, generating procurement savings, and through technology initiatives that increase our business agility.
Burberry has a capital allocation framework, which prioritises the use of cash, while maintaining an appropriate capital structure for the business. This is set out in further detail on page 55 of the Annual Report. Our uses of cash are summarised below.
Reinvest for organic growth.
Pay a progressive dividend.
Invest in strategic initiatives.
Return excess cash to shareholders.
Underpinned by retaining a solid investment grade credit rating.