Interim results for the six months ended 30 September 2017
Note: Burberry has also released a strategy announcement today, 9 November
Burberry announces double-digit underlying profit growth in the first half delivering strong operational execution.
|£ million||% change|
|Six months to 30 September|
|Retail comparable store sales||4%||0%|
|Adjusted operating profit||185||144||28||17|
|Adjusted operating profit margin||14.6%||12.5%|
|Reported operating profit||127||102||24|
|Adjusted Diluted EPS (pence)||32.3||24.4||32|
|Diluted EPS (pence)||21.4||16.2||32|
|Free cash flow||171||75|
- Revenue +4% underlying, +9% reported with retail comp store sales +4%
- Adjusted operating margin up 210bps to 14.6% benefiting from phasing and a significant improvement in Beauty profitability
- Strong free cash flow £171m (H1 2017: £75m), cash conversion 117%
- £191m of share buyback completed; total of £350m to be completed in FY 2018
- Fashion and newness resonated well, with strength in rainwear and leather goods
- Conversion improved in all regions led by returning top spending customers
- Direct-to-consumer digital revenue grew in all regions led by growth of mobile
- Delivered £20m incremental cost savings; cumulative now £40m
o Accelerated and expanded programme to deliver cumulative savings of £60m in FY 2018, £100m in FY 2019 and £120m annualised in FY 2020
- Burberry Business Services opened in October
- Beauty transitioned to strategic partnership with Coty on 2 October, as planned
- Third consecutive year of inclusion in the Dow Jones Sustainability Index
“I am pleased with our performance in the half with strong double-digit underlying profit growth. Consumers responded positively to fashion and newness, particularly in rainwear and leather goods. Digital revenue grew in all regions, led by mobile, while growth was strongest in our own stores in Asia Pacific. I look forward to building on our strong foundations as we implement our strategy to drive Burberry forward.”
Marco Gobbetti, Chief Executive Officer
All metrics and commentary in the Interim Management Report exclude adjusting items unless stated otherwise and certain financial data within this announcement have been rounded.
The following alternative performance measures are presented in this announcement: adjusted performance measures, underlying performance, comparable sales and free cash flow. The definitions of these alternative performance measures are set out in the Appendix on page 9.
|Investors and analysts|
|Charlotte Cowley||VP, Investor Relations||020 3367 3234|
|Andrew Roberts||VP, Corporate Relations||020 3367 3764|
- There will be a presentation today at 9.30am (UK time) for investors and analysts at Horseferry House, Horseferry Road, London, SW1P 2AW
- The presentation can be viewed live on the Burberry website www.burberryplc.com and can also be accessed live via a listen only dial-in facility on +44 (0)20 3003 2666 (password: Burberry Interim Results). The supporting slides and an indexed replay will be available on the website later in the day
- Burberry will update on third quarter trading on 17 January 2018
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. Burberry Group plc undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. Nothing in this announcement should be construed as a profit forecast. All persons, wherever located, should consult any additional disclosures that Burberry Group plc may make in any regulatory announcements or documents which it publishes. All persons, wherever located, should take note of these disclosures. This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction.
Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index. ADR symbol OTC:BURBY.
BURBERRY, the Equestrian Knight Device and the Burberry Check are trademarks belonging to Burberry which are registered and enforced worldwide.