Burberry Group plc reports preliminary results for its financial year ended 31 March 2004.
Financial Highlights
-Total revenues increased by 15% on an underlying* basis, 14% reported
– Retail sales up 15% underlying, 13% reported
– Wholesale sales increased 14% underlying, 14% reported
– Licensing revenue up 18% underlying, 15% reported
– Gross profit margin increased from 56.0% to 57.9%
– EBITA** margin expanded from 19.7% to 20.9%
– EBITA increased by 21% to £141.2 million
– 28% increase in diluted EPS (before goodwill amortisation, exceptional gain and IPO related charges) to 19.1p
– Strong cash generation reflects profitability and working capital efficiencies
– 50% increase in final dividend to 3.0p per ordinary share (4.5p for full year)
*Underlying figures are calculated at constant exchange rates and exclude the impact of the July 2002 acquisition of the operations of Burberry's distributor in Korea (the "Korea acquisition"). **EBITA represents operating profit before interest, taxation, exceptional items and goodwill amortisation.
Strategic Highlights
– Elevated design content and cohesion across product ranges
– Launched iconic Burberry Brit fragrance to strong consumer response
– Opened 9 new directly operated stores with important additions in all regions
– Strengthened wholesale distribution across markets
– Extended reach in emerging markets with franchise store and concession openings in China, Russia and the Middle East
– Enhanced brand management activities in Japan
John Peace, Chairman of Burberry, commenting on the preliminary results: “2003/04 marks another successful year for Burberry. The strength of the business in the context of this year's challenging trading environment highlights the vibrancy of the Burberry brand and the dedication and talents of its management team.”
Rose Marie Bravo, Chief Executive, stated: “This has been a terrific year for Burberry. The Group achieved 28% EPS growth on a 14% revenue gain backed by double digit growth in each of our businesses. With a favourable response to date to our autumn/winter 2004 merchandise, we look ahead to the current financial year with confidence. My thanks go to the management team which continues to deliver on our goals both strategically and financially.”
