Burberry Final Results 2011/12 - dividend up 25%
“Burberry has completed another successful year, with revenue up 24% and adjusted profit before tax up 26%. An intense focus by our global teams on business, brand and culture in recent years has resulted in a strong foundation across channels, regions and products. While we remain vigilant about the external environment, we will continue to invest in front-end opportunities within our brand, digital and retail strategies, to drive sustained, profitable growth and enduring customer engagement over the long term.” - Angela Ahrendts Chief Executive Officer
Highlights Strong financial results
- Revenue up 24% to £1,857m
- Retail/wholesale operating margin 16.4%, up 80bp (H2: up 130bp)
- Adjusted PBT up 26% to £376m; reported PBT up 24% to £366m
- Full year dividend up 25% to 25.0p
- Net cash increased to £338m after £177m investment spend
Strong, balanced foundation supported growth in FY 2011/12
- By channel
- Retail revenue up 31% underlying; 68% of revenue (H2: 72%)
- Opened 23 mainline stores
- First flagships in Hong Kong, Paris and Taipei
- By region
- All regions up double-digit
- Asia Pacific largest region at 37% of retail/wholesale revenue
- Flagship markets in UK and France performed well
- By product division
- All product divisions up double-digit
- Non-apparel largest division at 39% of retail/wholesale revenue
- Core outerwear and large leather goods about half of revenue
- Replenishment about 50% of mainline revenue
Investing in front-end growth opportunities in FY 2012/13
- Capital expenditure planned at £180-200m
- 12-14% space growth
- Biased to larger format stores in flagship markets, including London, Chicago and Hong Kong
- Customer insight and service
- Innovation in digital marketing and retail
- Further modest improvement in full year retail/wholesale operating margin planned, delivered in H2
All metrics and commentary in the Group Financial Highlights and Business and Financial Review except reported EPS exclude the results of the discontinued Spanish operations.
Adjusted measures exclude:
1. Restructuring costs of nil in 2012 (2011: £1.0m credit relating to the Group’s cost efficiency programme announced in January 2009).
2. The put option liability finance charge relating to the third party 15% economic interest in the Chinese business in 2012 of £10.2m (2011: £3.2m).
3. Losses from discontinued Spanish operations in 2012 of £0.3m (2011: £6.2m).
Underlying change is calculated at constant exchange rates.
Certain financial data within this announcement have been rounded.
Group financial highlights
- Total revenue up 24% to £1,857m (2011: £1,501m)
- Retail/wholesale revenue up 25% and adjusted operating profit up 31%; operating margin of 16.4% (2011: 15.6%)
- Adjusted profit before tax up 26% to £376m (2011: £298m); reported profit before tax up 24% to £366m (2011: £296m)
- Tax rate on adjusted profit before tax of 26.7% (2011: 27.9%)
- Adjusted diluted earnings per share up 26% to 61.6p (2011: 48.9p); reported diluted earnings per share up 26% to 59.3p (2011: 46.9p)
- Full year dividend per share up 25% to 25.0p (2011: 20.0p), consistent with policy of 40% dividend payout based on adjusted EPS
- Year-end net cash of £338m (2011: £298m), after £153m capital expenditure, £24m acquisition spend and £61m ESOP share purchase