Our framework for long-term value creation centres around three major pillars: revenue growth, operating margin accretion and capital efficiency.
Burberry operates in the luxury goods sector, where industry growth tends to deliver ahead of overall global Gross Domestic Product (GDP) growth per annum. Our ambition, in the medium term, is to drive towards high single-digit top-line growth. We have four strategic pillars supporting revenue growth to enable us to achieve this:
ADJUSTED OPERATING PROFIT
Burberry currently generates an Adjusted Operating Profit Margin of 16.1%. In the medium term, our ambition is to deliver meaningful Adjusted Operating Profit Margin improvements each year. There are two significant factors underpinning our ambition:
Burberry has a history of strong free cash flow generation, with our cash conversion averaging 106% over the last five years. We have a clear capital allocation framework, which prioritises our uses of cash, while maintaining an appropriate capital structure for the business. Our target is to maintain a strong balance sheet with solid investment grade credit metrics. Our uses of cash are summarised below.
* At constant exchange rates
** Base year FY 2016/17
Our capital allocation framework is set out and discussed in full on page 72 of our Annual Report. Over the past five years, Burberry has returned £809 million to shareholders through dividends, and over the past three years has completed £600 million of share buybacks.