Burberry: Interim results for the six months ended 30 September 2014
Burberry posts strong first half results with revenue up 14% underlying to £1.1bn
Burberry today posted strong growth in the first half, with adjusted profit up 6% underlying to £152m and double-digit underlying revenue growth in all regions, despite a more difficult external environment. These results have been driven by the focused execution of Burberry’s strategies to drive brand momentum, product excellence and enhanced customer experiences, both on and offline.
Strong underlying financial performance- Revenue £1,100m, up 14% underlying, up 7% at reported FX
- Adjusted PBT £152m, up 6% underlying
- After £31m adverse exchange rate impact, down 12% at reported FX - Reported PBT £142m (2013: £159m)
- Net cash of £307m at September 2014 (2013: £208m)
- Interim dividend up 10% to 9.7p
Consistent execution of core strategies
- Relaunched heritage products
- Launched My Burberry, our iconic fragrance, providing a halo benefit to the brand
- Nine mainline stores opened, including six in airports
- Digital outperformed; mobile platform upgraded in Q3
Christopher Bailey, Chief Creative and Chief Executive Officer, commented:[p"We’re proud to report that Burberry delivered a strong first half, with sales increasing by 14% and profit up 6%, both underlying. This performance reflects the passion and commitment of our teams around the world and the great momentum of the brand.
Looking ahead, in a more difficult external environment, we continue to focus on the things that we can control. Through authentic products, great customer experiences and a culture of continuous improvement and innovation, we remain confident of Burberry’s sustained outperformance"[/p]All metrics and commentary in the Group Financial Highlights and Interim Management Report exclude adjusting items unless stated otherwise.Adjusting items are:
- A charge of £7.5m in reported operating expenses being the amortisation of the fragrance and beauty licence intangible asset (2013: £7.5m)
- A put option liability finance charge of £3.0m in the reported net finance charge relating to the third party 15% economic interest in the Chinese business (2013: charge of £7.4m)
Details of adjusting items are contained in Note 4 of the Condensed Consolidated Interim Financial Statements.
Underlying performance is presented in this announcement as, in the opinion of the Directors, it provides additional understanding of the ongoing performance of the Group.
Underlying performance is calculated before adjusting items and removes the effect of changes in exchange rates, compared to the prior period. This takes into account both the impact of the movement in exchange rates on the translation of overseas subsidiaries’ results and also now on foreign currency procurement and sales through the Group’s UK supply chain.
Certain financial data within this announcement have been rounded.
- There will be a presentation today at 9.30am (UK time) 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 dial-in facility on +44 (0)20 3427 1921, password 1676777
- The supporting slides and an indexed replay will be available on the website later in the day
- Burberry will update on trading on 14 January 2015 when it will issue its Interim Management Statement for the Third Quarter
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 forecasts. 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.
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