# Burberry Group H1 FY22 revenues back at pre COVID-19 levels - Link: https://www.directorstalkinterviews.com/burberry-group-h1-fy22-revenues-back-at-pre-covid-19-levels/4121032653 - Published: 2021-11-11T07:24:19+00:00 - Author: Amilia Stone **[Burberry Group plc](https://www.directorstalkinterviews.com/ftse-company/burberry-group/brby.l)**( LON:BRBY) has announced its interim results for 26 weeks ended 25 September 2021. ·       H1 FY22 revenues back at pre COVID-19 levels (CER) with adjusted operating profit ahead vs LLY* – Within comparable store sales growth of 1% vs LLY*, full-price gained 18% – Full-price performance driving gross margin and adjusted operating margin increases vs LLY* ·       Americas, Mainland China and South Korea delivered strong double-digit growth vs LLY* while other regions were under pressure from reduced tourist levels ·       Core product categories: leather saw double-digit growth in full-price comparable sales vs LLY with outerwear strengthening in the period ·       New store concept driving higher-spending customer recruitment. We now have 15 stores in the new format with around 50 new concept stores planned globally by end FY22 ·       Digital performing well with full-price sales almost doubling vs LLY* ·       Set industry-leading commitments around climate including pledge to be Climate Positive by 2040 and support global conservation efforts ·       Strong cash generation with cash conversion over 100%. Interim dividend reinstated at 11.6p, 3% ahead of FY20 levels and recommenced the share buyback with £150m planned **Outlook** ·       Maintaining our medium-term guidance for high single-digit top line growth and meaningful margin accretion* and confirm that we are comfortable with current year market expectations _*Guidance is quoted at constant exchange rates (CER) with the base year in FY20_ _The financial information contained herein is unaudited._ _All metrics and commentary in the Interim Review exclude adjusting items unless stated otherwise._ **GROUP H1 FY22 FINANCIAL HIGHLIGHTS** **Revenue** ·     Revenue £1,213m +45% CER, +38% reported ·     Retail comparable store sales +37% (Q1: +90%; Q2: +6%) **Adjusted profit** ·     Adjusted operating profit £196m, 4.2x CER, 3.8x reported ·     Adjusted operating profit includes a £5m profit from the disposal of a property ·     Gross margin increased +130bps CER (+120bps reported). In line with our elevation strategy, gross margin benefited from a higher mix of full-price sales and product elevation driving higher average prices ·     Operating expenses impacted by higher investment and cost normalisation as guided ·     Adjusted diluted EPS 33.5p, up 7.3x Reported profit measures ·    Reported operating profit £207m, up 2.4x at reported rates against H1 FY21 after adjusting items credit of £11m (H1 FY21: £37m credit) largely due to COVID- 19 related rent concessions ·     Diluted EPS 35.7p, 2.9x reported **Cash measures:** ·     Free cash inflow of £104m (H1 FY21: £45m outflow) with cash conversion over 100% ·     Cash net of overdrafts and borrowings of £846m at 25 September 2021 (27 March 2021: £919m). The £73m cash outflow reflects the higher than usual dividend payment in the half of £172m, being a full year dividend paid in respect of the prior year. ·     Interim dividend of 11.6p declared (H1 FY21: nil) ·     Share buyback of £150m to be completed in H2 2022 > “We have made strong progress in the half. Full-price sales are growing at a double- > digit percentage, driving margin expansion and strong free cash generation. We > are seeing an acceleration in performance in countries less impacted by travel > restrictions and we remain confident of achieving our medium-term goals. I would > like to thank Marco Gobbetti for his vision and leadership of Burberry Group’s > transformation. We are very excited that Jonathan Akeroyd is joining as our new > CEO in April to build on the strong foundations to accelerate growth and deliver > further value for our shareholders.” _–_ **Gerry Murphy, Chair** Share on: