Alternative performance measures, including adjusting measures, are defined on page 45 of the Annual Report.
* The Group also had borrowings at 1 April 2023 of £298m (2 April 2022: £298m, 27 March 2021: £297m, 28 March 2020: £300m).
Key Performance Indicators (KPIs) help management measure progress against our six strategic pillars and Responsibility targets.
This measures the appeal of the Burberry brand to customers through all of our sales channels.
Financial ambition in the medium term
£4 billion of revenue (at FY 2021/22 exchange rates) equating to high single-digit growth over the period.
Performance
FY 2022/23 revenue increased by 5% at CER.
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. It is adjusted for permanent closures and refurbishments, and includes all digital revenue.
Financial ambition in medium term
£4 billion of revenue (at FY 2021/22 exchange rates) equating to high single-digit growth over the period.
Performance
FY 2022/23 comparable sales increased by 7% in the year as a result of good progress in our core leather goods and outerwear categories.
This measure tracks our ongoing operating profitability and reflects the combination of revenue growth and cost management.
Financial ambition over time
Adjusted operating profit growth ahead of revenue growth.*
Performance
Adjusted operating profit in FY 2022/23 increased by 8% at CER. This was as a result of the growth in revenue and controlling adjusted operating cost growth as a result of strong cost management.
This measures how we drive operational leverage and disciplined cost control, with thoughtful investment for future growth building the long-term value of the brand.
Financial ambition
Progression to our target of over 20% at FY 2021/22 exchange rates in the medium term.
Performance
Adjusted operating profit margin improved by 200 bps which was 60 bps at constant exchange rates as a result of the leverage from revenue growth in excess of operating cost growth and 140 bps from the impact of FX and the 53rd week in FY 2021/22.
Growth in adjusted diluted EPS reflects the increase in profitability of the business, movement in the tax rate and share repurchase accretion.
Financial ambition over time
Adjusted EPS growth ahead of revenue growth.*
Performance
Adjusted diluted EPS increased by 30% year-on-year, due to the improvement in adjusted operating profit, the reduction in net finance expense and the accretion from the share buyback.
Adjusted Group ROIC measures the efficient use of capital on investments. It is calculated as the post-tax adjusted Group operating profit divided by average adjusted operating assets over the period.
Financial ambition over time
ROIC significantly ahead of Weighted Average Cost of Capital (WACC).
Performance
Adjusted Group ROIC increased to 28.6%, significantly ahead of the Group’s WACC, in FY 2022/23, mainly due to the increase in adjusted operating profit. Average operating assets increased by 5%.
*At CER and adjusted for the 53rd week in FY 2021/22.
Details of alternative performance measures are shown on page 37 of the Annual Report. The calculation of Adjusted Group ROIC is set out on page 37 of the Annual Report.
We have developed non-financial measures to assess our performance against our ongoing colleague objectives and FY 2022/23 Responsibility targets, with progress regularly monitored by our Board. For further details on Environmental and Social Responsibility activities and progress against FY 2022/23 targets, see pages 50 to 93. The Group has considered the non-financial reporting requirements under sections 414CA and 414CB of the Companies Act 2006 and has included details in the Annual Report.
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.
Note: all page references in this section refer to the Annual Report.
To end of year |
2019 |
Pro forma5 |
2020 |
2021 |
2022 |
2023 £m |
Retail |
2,186 |
2,110 |
2,110 |
1,910 |
2,273 |
2,501 543 |
Retail/Wholesale |
2,674 |
2,586 |
2,586 |
2,306 |
2,785 |
3,044 50 |
Total revenue |
2,720 |
2,633 |
2,633 |
2,344 |
2,826 |
3,094 |
Profit by channel |
£m |
£m |
£m |
£m |
£m |
£m |
Retail/Wholesale1 |
396 |
361 |
390 |
361 |
486 |
587 |
Licensing |
42 |
43 |
43 |
35 |
37 |
47 |
Adjusted operating profit1 |
438 |
404 |
433 |
396 |
523 |
634 |
Segmental analysis of adjusted profit1 |
2019 |
Pro forma5 |
2020 |
2021 |
2022 |
2023 % |
Retail/Wholesale gross margin |
67.9 |
66.8 |
66.8 |
69.5 |
70.2 |
70.0 |
Retail/Wholesale operating |
53.1 |
52.8 |
51.7 |
53.8 |
52.7 |
50.7 |
Retail/Wholesale adjusted operating margin |
14.8 |
14.0 |
15.1 |
15.7 |
17.5 |
19.3 |
Licensing operating margin |
91.2 |
91.9 |
91.9 |
90.8 |
90.2 |
91.9 |
Total operating margin |
16.1 |
15.3 |
16.4 |
16.9 |
18.5 |
20.5 |
Summary profit analysis |
£m |
£m |
£m |
£m |
£m |
£m |
Adjusted operating profit1 |
438 |
404 |
433 |
396 |
523 |
634 |
Net finance income/(expense)1 |
5 |
6 |
(19) |
(30) |
(31) |
(21) |
Adjusted profit before taxation1 |
443 |
410 |
414 |
366 |
492 |
613 |
Adjusting items |
(2) |
(245) |
(245) |
124 |
19 |
21 |
Profit before taxation |
441 |
165 |
169 |
490 |
511 |
634 |
Taxation |
(102) |
(46) |
(47) |
(114) |
(114) |
(142) |
Non-controlling interest |
- |
- |
- |
- |
(1) |
(2) |
Attributable profit |
339 |
119 |
122 |
376 |
396 |
490 |
Retail/Wholesale revenue by product division |
£m |
£m |
£m |
£m |
£m |
£m |
Accessories |
1,013 |
948 |
948 |
841 |
1,017 |
1,125 |
Women's |
837 |
797 |
797 |
653 |
784 |
867 |
Men's |
698 |
715 |
715 |
668 |
807 |
868 |
Children's/Other |
126 |
127 |
127 |
145 |
177 |
184 |
Retail/Wholesale revenue by destination |
£m |
£m |
£m |
£m |
£m |
£m |
Asia Pacific |
1,104 |
1,041 |
1,041 |
1,203 |
1,276 |
1,297 |
EMEIA2 |
957 |
961 |
961 |
628 |
813 |
1,004 |
Americas |
612 |
585 |
585 |
475 |
696 |
743 |
Financial KPIs |
2019% |
Pro forma5 |
2020% |
2021% |
2022% | 2023% |
Total revenue growth3 |
-1 |
-4 |
-4 |
-10 |
+23 |
+5 |
Comparable store sales growth |
+2 | -3 | -3 | -9 | +18 | +7 |
Adjusted operating profit growth1,3 |
0 |
-8 |
-1 |
-8 |
+38 |
+8 |
Adjusted operating profit margin1 |
16.1 |
15.3 | 16.4 | 16.9 | 18.5 |
20.5 |
Adjusted diluted EPS growth1 |
+0 |
-5 | -4 | -14 | +40 |
+30 |
Adjusted Group return on invested capital (ROIC)1,5 |
15.5 |
13.5 |
20.0 |
17.0 |
24.6 |
28.6 |
1. Excludes the impact of adjusting items. Refer to note 2s for the Group’s policy on adjusting items.
2. EMEIA comprises Europe, Middle East, India and Africa.
3. Growth rate is year-on-year underlying change, i.e. at constant exchange rates.
4. The pro forma income statement for 2020 is an estimation of the results for 2020 applying the previous accounting standard for leases, IAS 17 Leases. The actual results for 2020 are reported applying IFRS 16 Leases.
5. Prior to 2020, reported ROIC was measured on a retail/wholesale basis. From 2020 onwards, reported ROIC is measured on a Group basis and reflects the impact of the adoption of IFRS 16 on the measure.
To end of year |
2019 |
Pro forma |
2020 |
2021 |
2022 |
2023 pence per share |
Adjusted earnings per share - diluted1 |
82.1 |
77.9 |
78.7 |
67.3 |
94.0 |
122.5 |
Earnings per share - diluted |
81.7 |
29.0 |
29.8 |
92.7 |
97.7 |
126.3 |
Diluted weighted average number of ordinary shares (millions) |
415.1 |
409.0 |
409.0 |
405.1 |
404.8 |
388.0 |
Dividend per share |
|
|
|
|
|
|
Interim |
11.0 |
11.3 |
11.3 |
- |
11.6 |
16.5 |
Final |
31.5 |
- |
- |
42.5 |
35.4 |
44.5 |
To end of year |
2019 |
2020 |
2021 |
2022 |
2023 £m |
|
Adjusted profit before tax |
443 |
414 |
366 |
492 |
613 |
|
Adjusting items |
(2) |
(245) |
124 |
19 |
21 |
|
Profit before tax |
441 |
169 |
490 |
511 |
634 |
|
Depreciation and amortisation |
116 |
331 |
277 |
313 |
344 |
|
Employee share scheme costs |
16 |
3 |
12 |
16 |
19 |
|
Net financing expense |
(4) |
20 |
31 |
32 |
23 |
|
Decrease/(increase) in inventories |
(59) |
27 |
21 |
(22) |
(10) |
|
Decrease/(increase) in receivables |
(55) |
(10) |
(39) |
(5) |
(17) |
|
Increase (decrease) in payables and provisions |
55 |
(84) |
(7) |
81 |
(49) |
|
Other cash items |
2 |
- |
(1) |
- |
- |
|
Other non-cash items |
4 |
169 |
(107) |
(17) |
(32) |
|
Cash flow from operations |
516 |
625 |
677 |
909 |
912 |
|
Net interest |
6 |
(19) |
(27) |
(30) |
(22) |
|
Tax paid |
(111) |
(150) |
(58) |
(180) |
(140) |
|
Net cash flow from operations2 |
411 |
456 |
592 |
699 |
750 |
|
Capital expenditure |
(111) |
(149) |
(115) |
(161) |
(179) |
|
Proceeds from disposal of non-current assets |
- |
3 |
27 |
8 |
32 |
|
Payment of lease principal and related cash flows |
- |
(244) |
(155) |
(206) |
(210) |
|
Free cash flow |
300 |
66 |
349 |
340 |
393 |
|
Acquisitions |
(26) |
(3) |
(4) |
(10) |
(6) |
|
Dividends |
(171) |
(175) |
- |
(219) |
(203) |
|
Purchase of shares through share buy-back |
(151) |
(151) |
- |
(153) |
(404) |
|
Proceeds from borrowings |
- |
300 |
595 |
- |
- |
|
Repayment of borrowings |
- |
- |
(600) |
- |
- |
|
Other |
(10) |
4 |
2 |
(4) |
2 |
|
Exchange difference |
2 |
9 |
(13) |
7 |
2 |
Total movement in net cash |
(56) | 50 |
329 |
(39) |
(216) |
Net cash |
837 |
887 |
1,216 |
1,177 |
961 |
1. Excludes the impact of adjusting items. Refer to note 2s in the Annual Report for the Group’s policy on adjusting items.
2. Following the adoption of IFRS 16 in the year ending 28 March 2020, Net cash flow from operations excludes cash outflows for lease principal and other lease payments. Free cash flow is presented including these lease payments and hence free cash flow is on a comparable basis to prior years.
At end of year |
2019 |
2020 |
2021 |
2022 |
2023 £m |
|
Intangible assets |
221 |
247 |
237 |
240 |
248 |
|
Property, plant and equipment |
307 |
295 |
280 |
322 |
376 |
|
Right-of-use assets |
- |
834 |
818 |
880 |
950 |
|
Inventories |
465 |
451 |
402 |
426 |
447 |
|
Trade and other receivables |
321 |
306 |
322 |
328 |
359 |
|
Trade and other payables |
(702) |
(550) |
(492) |
(572) |
(553) |
|
Lease liabilities |
- |
(1,126) |
(1,020) |
(1,058) |
(1,123) |
|
Taxation (including deferred taxation) |
98 |
214 |
148 |
221 |
229 |
|
Net cash |
837 |
887 |
1,216 |
1,177 |
961 |
|
Borrowings |
- |
(300) |
(297) |
(298) |
(298) |
|
Other net assets |
(87) |
(39) |
(54) |
(49) |
(57) |
|
Net assets |
1460 |
1,219 |
1,560 |
1,617 |
1,539 |
Reconciliation of adjusted Group ROIC as reported under IFRS 16 |
2019 |
2020 |
2021 |
2022 |
2023 £m |
|
Adjusted operating profit1 |
|
433 |
396 |
523 |
634 22.2% |
|
Adjusted net operating profit after tax1 |
|
336 |
295 |
407 |
493 |
|
Net assets |
1,460 |
1,219 |
1,560 |
1,617 |
1,539 |
|
Adjustments to net assets on adoption of IFRS 16 and IFRIC 23 |
(62) |
- |
- |
- |
- |
|
Deduct net cash of overdrafts |
(837) |
(887) |
(1,216) |
(1,177) |
(961) |
|
Add back borrowings |
- |
300 |
297 |
298 |
298 |
|
Add back lease debt |
1,045 |
1,125 |
1,019 |
1,058 |
1,123 |
|
Deduct tax assets |
(98) |
(214) |
(148) |
(221) |
(229) |
|
Operating assets |
1,508 |
1,543 |
1,512 |
1,575 |
1,770 5 30 |
|
Adjusted operating assets |
1,557 |
1,815 |
1,657 |
1,646 |
1,805 1,726 |
|
Adjusted Group ROIC |
- |
20.0% |
17.0% |
24.6% |
28.6% |
1. Excludes the impact of adjusting items. Refer to note 2s for the Group’s policy on adjusting items.
Retail/wholesale revenue by destination
Period ending |
1 April 2023 |
2 April |
Retail |
2,501 |
2,273 |
Wholesale |
543 |
512 |
Licensing |
50 |
41 |
-4% at CER
Number of stores: 85
+22% at CER
Number of stores: 102
-1% at CER
Number of stores: 226
1. All references to revenue growth are presented at Constant Exchange Rates (CER) and exclude the impact of the 53rd week in FY 2021/22. See page 45 of the Annual Report for reconciliation to total revenue.
2. Retail/wholesale revenue.
3. For more detail on performance see Group Financial Highlights on pages 38 to 46 of the Annual Report.
Retail/wholesale revenue by product division
Period ending |
1 April 2023 |
2 April 2022 |
Accessories |
1,125 |
1,017 |
Women's |
867 |
784 |
Men's |
868 |
807 |
Children, Beauty & other |
184 |
177 |
1. Retail/wholesale revenue.
