Burberry increases its 2017 interim dividend by 3%

DividendMax Ltd.

Burberry increases its 2017 interim dividend by 3%

Financial performance

- Revenue £1,159m, down 4% underlying (up 5% at reported FX)

- Retail growth, led by strength in the UK, offset by declines in wholesale and licensing, in part reflecting actions to build and reinforce luxury brand positioning

- Adjusted profit before tax £146m, down 24% underlying (down 4% at reported FX)

- Adjusted retail/wholesale profit down 19% underlying (up 3% at reported FX), principally due to lower revenues

- Licensing profit down £11m due to planned expiry of Japanese licences

- Reported profit before tax £102m, down 34% after adjusting items reflecting strategic actions

- Net cash of £529m at September 2016 (2015: £459m), after £69m payment for China and Burberry Middle East non-controlling interests

Strategic progress

- Product focus

- Innovation and newness resonating with customers; strength in bags as continue to develop category

- Productive space

- Focus on customer cultivation and retail service; increased investment in global training and expanded Burberry Private Client team

- E-commerce leadership

- Digital grew in all regions; launch of redesigned website and strong growth from digital third-parties

- Operational excellence and Inspired people

- Simplifying our structure and processes to enhance efficiency and effectiveness;
on track to deliver planned cost savings of around £20m in FY 2017

- Brand reach and engagement building; exceptional response to runway show and collection

Capital returns to shareholders

- Additional £50m share buyback to commence upon completion of first £100m, of which £34m completed in the half

- Interim dividend up 3% to 10.5p

Companies mentioned