Prepared by

• Sherif Hassan kotb el Sayed belal ID 1812263201005467201

Purchasing supervisor pharmacist [email protected]
• Ramy Said Mahmoud Farahat ID 1812453901119555810
Technical engineer PowerTec [email protected]
• Duaa Khaled Hussain Mohamed ID 1822170701011533789
Customer service Supervisor El Baraka bank [email protected]
• Mohamed Abdel Rahman Sayed ID 1812260401229147294
Pharmacist [email protected]
• Amr Darwish Ahmed ID 1822189101117471717
Entrepreneur [email protected]
• Hayat Abdel Hamid Nowaeir ID 1812277901204439267
Marketing specialist Egy telecom [email protected]
• Youssef Ahmed Mohamed said ID 1822164501140170155
Freelancer [email protected]
• Ahmed Magdy Aly Hegazy ID 1822180301113621237
Sales support thyssenkrupp [email protected]
• Intro Hegazy
• history of Burberry Amr
• strategy analysis Duaa
• Marketing analysis Youssef
• Performance indicators Hayat
• governance system analysis Hegazy
• Financial analysis Sherif
• Financial statement analysis Sherif
• Financial ratios A. Rahman
• Should we invest in burberry Ramy
 Introduction
your daily routine at work: Others daily routine at work:
There are two types of worker
Why to read the anual Report ?
• It is the most detailed report provide you with all the needed
information
• Determine wether the investment is Good or not
what to look for?
Cover page(an illustration of company basic information)
• The type of stocks offered by the company
• The market value of the share & number of shares
Part 1 business description (an illustration of the top business priorities)
• Business description
• (Business model)
• marketability (specially customers)
• Risk factors
• Part 2 Directors, Officers, and Beneficial Shareholders with governance
systems
• Summary of excutive salaries, perks & other benifical shareholders
• Governace systems
• Meetings of excutive officers
• Part 3 Financial information (an overview of the previous year results)
• Management discussion & análisis
• Financial statements
• Studying the financial profile
History of Burberry
1856 | Burberry is founded in
Basingstoke by draper Thomas Burberry
“in a small town with a population of
only 4,500 people”,

His original focus was outdoor-ready

attire, stuff that was favored by Lord
Kitchener and Lord Baden Powell.

1879 | Burberry creates gabardine.

Water-resistant fabric made from
Egyptian cotton through an innovative
process, which attracted positive reviews
at the International Health Exhibition
1891 | Burberry opens its first store on
Haymarket, London.

1893| Fridtjof Wedel-Jarlsberg Nansen

Scientist & Innovator .

1901 | Trech Coat garment with 

double-breasted with 10 front buttons,

1911 | The company becomes the

outfitters for Roald Amundsen, the

first man to reach the South Pole.

 1914 | In the First World War, the
Burberry Trench Coat is worn by
British officers in the trenches. It was
known as the "Tielocken”, featured a
belt with no buttons, and protected the
body from head to toe.
1920 | The Burberry registered as a
trademark, is introduced as a lining to
the rainwear, and well known World
Wide

1950 | HM QUEEN ELIZABETH II

Grants Burberry A ROYAL WARRANT
as A Weatherproofer.
1972 |Burberry formally acquires
the factory in Castleford, the
home of the Burberry trench
coat, building on our
manufacturing presence in the
UK – a legacy that continues
today.
1990 | BURBERRY is Granted a Royal
Warrant by HRH the Prince of WALES as An
Outfitter.

1999 | "Burberry's" becomes "Burberry".

And A New Logo is designed by Art Director
Fabien Baron
 
2002 | BURBERRY Become Public Quoted
Company Floating on THE LONDON STOCK
EXCHANGE.
 
2008 | The Burberry Foundation is
established as an independent charity for
general charitable purposes and Grant-
making.
2011 | Moving Away from A Wholesale
and Licensed Business Model Retail
becomes The Primary Route Of
Distribution from 43% in 2005/2006
to 64% in 2011

2014 | BURBERRY Directy Operates

over 500 Stores around the World
2016 | BURBERRY is the First Brand
to make “Runway Collection”
PURCHASE IMMEDIATELY AFTER
THE SHOW
 BURBERRY BUSINESS MODEL
KEY PARTNERS:
• SUPPLIES
• PRODUCTION SITE MANAGERS
• WHOLESALE PARTNERS
• MODELS & FASHION SHOW MANAGERS
KEY ACTIVITIES:
• DESIGNING
• SUPPLY CHAIN
• Marketing communication
KEY RESOURCES:
• DESIGNERS
• UNIQUE MATERIAL
• PHYSICAL STORES PRESENCE

CUSTOMER RELATIONSHIP:
• PERSONAL ASSISTANCE
• OWN RETAIL NETWORK
• NIECHE MARKET

VALUE PROPOSITION:
• BRAND
• DESIGN
• EXCLUSIVITY

COST STRUCTURE:
• HIGH FIXED COST
• HIGH MARGIN
  REVENUE STREAMS
• Valueabl Luxruxy brand.
• Profitable products for women, men, kids
• Three channels (retail,wholesale,liscensing).
 RESPONSIBILITY STRATEGY
Product Company Communities
• To have 100% of product with • to achieve a zero-carbon • we aim to positively impact 1
more than one positive footprint in our own operational million people by 2022. Progress
attribute by 2022, where energy use by reducing absolute during FY 2018/19 includes:
positive attributes relate to emissions, improving energy • 65,000 students and teachers
social and/or environmental efficiency and switching to engaged in Yorkshire, UK,
improvements achieved at renewable energy sources, through school workshops,
either raw material sourcing or before offsetting any remaining teacher training, guest speaker
product manufacturing stage.  emissions. sessions and work experience at
• To source 100% of cotton •   as part of our RE100 Burberry.
through the BCI, a non-profit membership, we have • 18,000 people in Tuscany, Italy,
organization focused on making committed to 100% renewable benefitting from enhanced
global cotton production better electricity by 2022 and are multi-cultural spaces and
for the people who produce it, driving this through close events, new youth mentoring
better for the environment it collaboration with our programmers and better access
grows in and better for the procurement and retail teams to community support services.
sector’s future.  and engagement with landlords. • 7,000 people in Afghanistan
• To source 100% of leather from • - reduce and revalue waste. We benefitting from training on
certified tanneries by 2022. already reuse, repair, donate or more sustainable livestock
• The significant increase from 1% recycle unsaleable products and management and participation
in FY 2017/18 was achieved by we will continue to expand in community-owned collective
working closely with key these efforts. action organizations.
tanneries in Italy.
 STAKEHOLDERS ENGAGEMENT
Customers Employees Shareholders Communities
Consumer insights: Engagement survey:  Annual General Meeting • Sustainability partners
Developing understanding  Findings showed their • Government
of the luxury fashion overall employee Multichannel • Licensees
consumer engagement score engagement:  • Committee
Customer service: increased by 2% multiple channels such • Burberry Inspire
Increasing and improving Retail:  as audio-casts and • volunteering
the assistance they offer communicating webcasts ,also • Financial support
to customers  extensively with their
Personalized services:  announcements in
sales associates person.
Enhancing the depth and Innovative programmers:
meaningfulness of Ongoing engagement: 
Supporting  employees in
customer interaction with through programmers
 over 300 meetings
their brand such as cross-functional with investors during
Customer analytics: problem-solving. FY 2018/19, for those
Using extensive data Communication:  with smaller and larger
from  customer feedback Videos and podcasts from shareholdings.
and intelligent analytics key figures are made Board engagement:
Social: available via Burberry The Board receives
Engaging with consumers World, company-wide
through their digital monthly updates from
platform.  Investor 
platforms Development: 
 My Career, online career Perception gauge: 
development tool, and using an independent
Burberry Voices podcast third party.
 RISKS
Strategic and
operational Risks compliance Risks
Financial Risks

• Insufficient operational • Accidental personal data loss or • Unexpected tax and financial
transform disclosure loss
• • • Copyright, trademark and
Unethical behavior Attack on Burberry website
design infringement
• Misunderstanding social • Risks such as fires, floods, terrorism • Unauthorized use or trademark
issues • Difficulty to replace suppliers of • Unauthorized sale of Burberry
• Failure to deliver technology luxury goods products
innovation • Failure to comply with EU general • Failure to comply with General
• Disrespect from suppliers data protection Data Protection Regulation
• Slowdown in luxury good • Business disruption or major data • Non-compliance with labor,
• Changes in exchange rates loss human or environmental
standards
• Pressure on reputation by • Misconfiguration of externally facing • Failure by the group or
celebrity associated third parties to act
ethically
Burberry Group Porter’s Five Forces Analysis
Threat of New Entrants:
• The economies of scale is fairly difficult to achieve in the industry in which Burberry Group Plc operates. This makes it easier
for those producing large capacitates to have a cost advantage. It also makes production costlier for new entrants. This
makes the threats of new entrants a weaker force.
• The product differentiation is strong within the industry, where firms in the industry sell differentiated products rather a
standardized product. Customers also look for differentiated products. There is a strong emphasis on advertising and
customer services as well. All of these factors make the threat of new entrants a weak force within this industry.
• The capital requirements within the industry are high, therefore, making it difficult for new entrants to set up businesses as
high expenditures need to be incurred. Capital expenditure is also high because of high Research and Development costs. All
of these factors make the threat of new entrants a weaker force within this industry.
• The access to distribution networks is easy for new entrants, which can easily set up their distribution channels and come
into the business. With only a few retail outlets selling the product type, it is easy for any new entrant to get its product on
the shelves. All of these factors make the threat of new entrants a strong force within this industry.
• The government policies within the industry require strict licensing and legal requirements to be fulfilled before a company
can start selling. This makes it difficult for new entrants to join the industry, therefore, making the threat of new entrants a
weak force.
How Burberry Group Plc can tackle the Threat of New Entrants?
• Burberry Group Plc can take advantage of the economies of scale it has within the industry, fighting off new entrants through
its cost advantage.
• Burberry Group Plc can focus on innovation to differentiate its products from that of new entrants. It can spend on marketing
to build strong brand identification. This will help it retain its customers rather than losing them to new entrants.
Bargaining Power of Suppliers:
• The number of suppliers in the industry in which Burberry Group Plc operates is a lot compared to the
buyers. This means that the suppliers have less control over prices and this makes the bargaining power
of suppliers a weak force.
• The product that these suppliers provide are fairly standardised, less differentiated and have low
switching costs. This makes it easier for buyers like Burberry Group Plc to switch suppliers. This makes
the bargaining power of suppliers a weaker force.
• The suppliers do not contend with other products within this industry. This means that there are no
other substitutes for the product other than the ones that the suppliers provide. This makes the
bargaining power of suppliers a stronger force within the industry.
• The suppliers do not provide a credible threat for forward integration into the industry in which Burberry
Group Plc operates. This makes the bargaining power of suppliers a weaker force within the industry.
• The industry in which Burberry Group Plc operates is an important customer for its suppliers. This means
that the industry’s profits are closely tied to that of the suppliers. These suppliers, therefore, have to
provide reasonable pricing. This makes the bargaining power of suppliers a weaker force within the
industry.
How Burberry Group Plc can tackle the Bargaining Power of Suppliers?
• Burberry Group Plc can purchase raw materials from its suppliers at a low cost. If the costs or products
are not suitable for Burberry Group Plc, it can then switch its suppliers because switching costs are low.
• It can have multiple suppliers within its supply chain. For example, Burberry Group Plc can have different
suppliers for its different geographic locations. This way it can ensure efficiency within its supply chain.
• As the industry is an important customer for its suppliers, Burberry Group Plc can benefit from
developing close relationships with its suppliers where both of them benefit.
Bargaining Power of Buyers:
• The number of suppliers in the industry in which Burberry Group Plc operates is a lot more than the number
of firms producing the products. This means that the buyers have a few firms to choose from, and
therefore, do not have much control over prices. This makes the bargaining power of buyers a weaker force
within the industry.
• The product differentiation within the industry is high, which means that the buyers are not able to find
alternative firms producing a particular product. This difficulty in switching makes the bargaining power of
buyers a weaker force within the industry.
• The income of the buyers within the industry is low. This means that there is pressure to purchase at low
prices, making the buyers more price sensitive. This makes the buying power of buyers a weaker force
within the industry.
• The quality of the products is important to the buyers, and these buyers make frequent purchases. This
means that the buyers in the industry are less price sensitive. This makes the bargaining power of buyers a
weaker force within the industry.
• There is no significant threat to the buyers to integrate backwards. This makes the bargaining threat of
buyers a weaker force within the industry.
How Burberry Group Plc can tackle the Bargaining Power of Buyers?
• Burberry Group Plc can focus on innovation and differentiation to attract more buyers. Product
differentiation and quality of products are important to buyers within the industry, and Burberry Group Plc
can attract a large number of customers by focusing on these.
• Burberry Group Plc needs to build a large customer base, as the bargaining power of buyers is weak. It can
do this through marketing efforts aimed at building brand loyalty. 
• Burberry Group Plc can take advantage of its economies of scale to develop a cost advantage and sell at low
prices to the low-income buyers of the industry. This way it will be able to attract a large number of buyers.
Threat of Substitute Products or Services:
• There are very few substitutes available for the products that are produced in the
industry in which Burberry Group Plc operates. The very few substitutes that are
available are also produced by low profit earning industries. This means that there is no
ceiling on the maximum profit that firms can earn in the industry in which Burberry
Group Plc operates. All of these factors make the threat of substitute products a
weaker force within the industry. 
• The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within the industry in which Burberry Group Plc
operates sell at a lower price than substitutes, with adequate quality. This means that
buyers are less likely to switch to substitute products. This means that the threat of
substitute products is weak within the industry.
How Burberry Group Plc can tackle the Threat of Substitute Products?
• Burberry Group Plc can focus on providing greater quality in its products. As a result,
buyers would choose its products, which provide greater quality at a lower price as
compared to substitute products that provide greater quality but at a higher price.
• Burberry Group Plc can focus on differentiating its products. This will ensure that
buyers see its products as unique and do not shift easily to substitute products that do
not provide these unique benefits. It can provide such unique benefits to its customers
by better understanding their needs through market research, and providing what the
customer wants.
Rivalry Among Existing Firms:
• The number of competitors in the industry in which Burberry Group Plc operates are very few. Most of these are also
large in size. This means that firms in the industry will not make moves without being unnoticed. This makes the
rivalry among existing firms a weaker force within the industry.
• The very few competitors have a large market share. This means that these will engage in competitive actions to gain
position and become market leaders. This makes the rivalry among existing firms a stronger force within the industry.
• The industry in which Burberry Group Plc is growing every year and is expected to continue to do this for a few years
ahead. A positive Industry growth means that competitors are less likely to engage in completive actions because they
do not need to capture market share from each other. This makes the rivalry among existing firms a weaker force
within the industry.
• The fixed costs are high within the industry in which Burberry Group Plc operates. This makes the companies within
the industry to push to full capacity. This also means these companies to reduce their prices when demand slackens.
This makes the rivalry among existing firms a stronger force within the industry.
• The products produced within the industry in which Burberry Group Plc operates are highly differentiated. As a result,
it is difficult for competing firms to win the customers of each other because of each of their products in unique. This
makes the rivalry among existing firms a weaker force within the industry.
• The production of products within the industry requires an increase in capacity by large increments. This makes the
industry prone to disruptions in the supply-demand balance, often leading to overproduction. Overproduction means
that companies have to cut down prices to ensure that its products sell. This makes the rivalry among existing firms a
stronger force within the industry.
• The exit barriers within the industry are particularly high due to high investment required in capital and assets to
operate. The exit barriers are also high due to government regulations and restrictions. This makes firms within the
industry reluctant to leave the business, and these continue to produce even at low profits. This makes the rivalry
among existing firms a stronger force within the industry.
• The strategies of the firms within the industry are diverse, which means they are unique to each other in terms of
strategy. This results in them running head-on into each other regarding strategy. This makes the rivalry among
existing firms a strong force within the industry.
How Burberry Group Plc can tackle the Rivalry Among Existing
Firms?
• Burberry Group Plc needs to focus on differentiating its products so
that the actions of competitors will have less effect on its
customers that seek its unique products.
• As the industry is growing, Burberry Group Plc can focus on new
customers rather than winning the ones from existing companies.
• Burberry Group Plc can conduct market research to understand the
supply-demand situation within the industry and prevent
overproduction.
Implications of Porter Five Forces on Burberry Group Plc:
• By using the information in Burberry Group Plc five forces analysis,
strategic planners will be able to understand how different factors
under each of the five forces affect the profitability of the industry.
A stronger force means lower profitability, and a weaker force
means greater profitability. Based on this a judgement of the
industry's profitability can be made and used in strategic planning.
 Burberry SWOT Analysis
Strengths: Weakness:
1. Burberry has a huge network of retail, 1. Due to Burberry’s positioning it is very much
wholesale and licensing channels globally accessible in the high-street, and has a low
2. Burberry is one of the biggest fashion houses couture presence.
in UK offering clothes, perfumes, beauty 2. The brand has to constantly fight with cheap
products etc imitations
3. Granted Royal Warrants by Queen Elizabeth II
and the Prince of Wales.
4. One of the most valuable companies in the
world owing to its legacy
5. Good advertising and brand presence in
Europe specially England makes Burberry a
prominent brand
6. Associations with international celebrities to
reach out to the customers
7. Close to 10,000 people are employed
with Burberry company
8. The brand has its presence in more than 50
countries & 500+ stores
opportunities: Threats:
1. After collaboration with other brands, 1. The brand faces threat from other
Burberry can try to make fashion more competitive everyday brands in terms of pricing
affordable. as well as availability
2. More advertising and marketing would 2. The customers have a higher bargaining
increase visibility power and low switching costs
3. Global expansion would help the brand grow 3. Intense competition in the segment can
worldwide reduce Burberry's market share
4. Effective use of ecommerce can
make Burberry reach out to more customers
 KEY PERFORMANCE
INDICATORS
There is two types of financial performance KPIs
- Financial KPIs
- Non-Financial KPIs
Here we will discuss our financial performance KPIs
FINANCIAL MEASURES
-We believe it is vital to ensure alignment between our Executive Committee’s strategic focus
and the long-term interests of shareholders. As a result, elements of Executive remuneration
are based on performance against the following measures: revenue growth, adjusted profit
before tax growth, and adjusted retail/wholesale return on invested capital.
 
-Key Performance Indicators (KPIs) help management measure progress against our six
strategic pillars and responsibility targets.
1-REVENUE GROWTH
-This measures the appeal of the Burberry brand for customers, through all our sales
channels.
-We can make analysis over the past 4 years.

Revenue
2800
2766
2750 2732.8
2720.2
2700

2650

2600

2550
2514.7
Revenue in
2500
year million
2450
2019 2720.2
2018 2732.8 2400
2017 2766 2350
2016 2514.7 2019 2018 2017 2016

Financial ambition
High single-digit top‑line growth.
Performance
2018/19 revenue declined 1%.Total retail sales was flat at CER. Wholesale growth excluding
Beauty was up 7% at CER. This was offset by the loss of Beauty wholesale revenue following the
beauty license with Coty. Excluding Beauty wholesale, revenue growth was 2%.
2-ADJUSTED OPERATING PROFIT GROWTH
This measure tracks our ongoing operating profitability and reflects the combination of revenue
growth and cost management.

operating profit
480.00

470.00 467.00

459.00
460.00

year operating profit 450.00

2019 438.00
438.00 operating profit
2018 467.00440.00 Linear (operating profit )
2017 459.00
430.00
2016 418.00
420.00 418.00

410.00

400.00

390.00
2019 2018 2017 2016

Financial ambition
Adjusted operating profit growth ahead of revenue growth.
Performance
Adjusted operating profit in FY 2018/19 was flat year on year with gross margin and operating
margin stable at CER. Incremental cost savings of £41 million, offset inflationary cost pressures and
strategic investments.
3- ADJUSTED OPERATING PROFIT MARGIN
This measures how we drive operational leverage and disciplined cost control, with thoughtful
investment for future growth, building the long-term value of the brand.
Operating Margin
17.20%
17.10%
17.10%

17.00%

16.90%

16.80%
Operating Margin
Linear (Operating Margin )
16.70%
year Operating Margin
16.60% 16.60% 16.60%
2019 16.60% 16.60%
2018 17.10%
2017 16.60% 16.50%
2016 16.60%
16.40%

16.30%
2019 2018 2017 2016

Financial ambition
Meaningful operating margin expansion.

Performance
Adjusted operating profit margin +10bps, at CER, -100bps rates at reported rates in FY 2018/19
due to the impact of exchange rates.
4- ADJUSTED PROFIT BEFORE TAX (PBT)
GROWTH
Adjusted PBT growth is a key profitability measureADJUSTED
to assess the ongoing
PROFIT BEFORE TAX (PBT) GROWTH
performance of the Company. 480
471
470
462
460

450
year ADJUSTED PROFIT BEFORE TAX (PBT) GROWTH 443 ADJUSTED PROFIT BEFORE TAX (PBT)
440 GROWTH
2019 443
Linear (ADJUSTED PROFIT BEFORE
2018 471 TAX (PBT) GROWTH)
2017 462 430

2016 421 421

420

410

400

390
2019 2018 2017 2016

Financial ambition
Adjusted PBT growth ahead of revenue growth.

Performance
Adjusted PBT in FY 2018/19 was flat year on year with gross margin and operating margin stable at
CER. Incremental cost savings of £41 million, offset inflationary cost pressures and strategic
investments.
5-ADJUSTED DILUTED EPS GROWTH
Growth in EPS reflects the increase in profitability of the business, improvement in the tax rate and
share repurchase accretion.
ADJUSTED PROFIT BEFORE TAX (PBT) GROWTH
85

82.1 82.1

80
77.4

ADJUSTED PROFIT BEFORE TAX 75 ADJUSTED PROFIT BEFORE TAX (PBT)

year (PBT) GROWTH GROWTH
2019 82.1 Linear (ADJUSTED PROFIT BEFORE TAX
(PBT) GROWTH)
2018 82.1 69.9
70
2017 77.4
2016 69.9

65

60
2019 2018 2017 2016

Financial ambition
Adjusted EPS growth ahead of revenue growth.

Performance
Adjusted diluted EPS (EPSA) was flat year on year at 82.1p in FY 2018/19. Before the impact of
foreign exchange, EPSA rose 7% due to an effective tax rate reduction of 200bps and the impact of
share repurchases.
6- ADJUSTED RETAIL WHOLESALE ROIC
Adjusted retail/wholesale ROIC measures the efficient use of capital on investments. It is calculated
as the post-tax adjusted retail/wholesale operating profit divided by average operating assets over
the period.
ADJUSTED RETAIL WHOLESALE ROIC
16.5
16.3

16

15.5
15.5 15.4
year ADJUSTED RETAIL WHOLESALE ROIC ADJUSTED RETAIL WHOLESALE ROIC
2019 15.5 Linear (ADJUSTED RETAIL
15 WHOLESALE ROIC)
2018 16.3
2017 15.4 14.7
2016 14.7
14.5

14

13.5
2019 2018 2017 2016

Financial ambition
ROIC significantly ahead of WACC.

Performance
Adjusted retail/wholesale ROIC 15.5%, -80 bps due to the reduction in reported profits as a result of
exchange rates
 NON-FINANCIAL MEASURES
-We have developed non-financial measures to assess our performance against our ongoing people
objectives and 2022 responsibility targets.
-Progress is regularly monitored by our Board through the Inspired People pillar of our strategy.
Here are some example of our non-financial measures
  OBJECTIVE MEASURE PERFORMANCE
EMPLOYEES Create an environment where all our Employee engagement FY 2018/19 Performance: 74% of employees are
employees are actively engaged in score as measured by engaged1
delivering outstanding results for Mercer Sirota
the business

PRODUCT Drive positive change through 100% of % of products with more FY 2018/19 Performance: 30% of product with one
our products, by increasing demand for than one positive attribute and a further 36% of product with
more sustainable raw materials and positive attribute more than
supporting our supply chain partners one positive attribute3

COMPANY Become carbon neutral in our own Absolute CO2e emissions FY 2018/19 Performance against our
operational energy use by 2022 and carbon neutral goal: 14,825,942 kg CO2e
meet our newly approved science market-based emissions (43% reduction
based targets: from a FY 2016/17 base year)
• Reduce absolute Scope 1 and 2 GHG
emissions 95% by 2022 from a
FY 2016/17 base year
• Reduce absolute Scope 3 GHG
emissions 30% by 2030 from a
FY 2016/17 base year

COMMUNITIES Positively impact 1 million people2 Number of individuals FY 2018/19 Performance: 103,000 people positively
by supporting programs led by the Burberry positively impacted impacted (a total of 125,000 people from a FY
Foundation 2016/17 base year)
Board of directors

Chairman CEO COO & CFO

Board of directors

Independent non Executive Senior independent director Independent non executive

director director
Board of directors

Independent non Executive Independent non Executive Independent non executive

director director director
Board of directors

Independent non Executive Independent non Executive

director director
 Corperate governace report
Governance report

• GOVERNANCE The UK Corporate Governance Code

(the Code) sets out the framework of governance
for premium listed companies within the UK
• Fully complied with the provisions of the UK
Corporate Governance Code 2016 (the Code).
• This report sets out the Board’s approach and
the work undertaken during FY 2018/19.
Together with the Directors
• updated UK Corporate Governance Code (the
2018 Code
• ensure there is meaningful two-way conversation
with the Board
 Corperate governace report
Audit COMMITTEE Chaired by Matthew Key

Responsible for:
• monitoring the integrity of Financial
Statements
• Reviewing the Group’s internal financial
controls and risk management systems
• the Internal Audit function, and the Group’s
relationship with the external auditor. The
Audit Committee is supported by the Ethics
Committee and the Risk Committee.
Report includes:
• Audit committee member ship
• Detailed Role of Committee
• Significant matters & actions done
• External auditors
• Appointments and fees
• Summary of non audit services
• Other non audit service
 Corperate governace report
NOMINATION COMMITTEE Chaired by Gerry
Murphy

Responsible for:
• Reviews the composition of the Board
• ensuring plans are in place for orderly
succession for both Board and senior
leadership positions keeping in mind the
importance of
• diversity and balancing skills and
experience when making appointments
• Report includes:
• Nomination of committee membership
• Detailed role of committee
• Diversity
 Corperate governace report
Audit REMUNERATION (rewarding) COMMITTEE
Chaired by Orna NíChionna

Responsible for :
• Determines the Remuneration Policy for
Executive Director remuneration
sets the remuneration for the Chairman,
Executive Directors and senior management.

Reports includes:
• Strategic context
• PERFORMANCE AND REMUNERATION
OUTCOMES
• REMUNERATION policy
• CHANGES TO THE UK CORPORATE
GOVERNANCE CODE
• Boarder employee reward
 Corperate governace report
Audit REMUNERATION (rewarding) COMMITTEE
Chaired by Orna NíChionna
 Corperate governace report
Audit REMUNERATION (rewarding) COMMITTEE
Chaired by Orna NíChionna

• Executive pay policy

• Fixed pay
• Salary
• Benefits
• Short term incentives
• Bonus
• Long term shares
• Bonus
• Package mix
• Remuneration outcomes
 Corperate governace report
Audit REMUNERATION (rewarding) COMMITTEE
Chaired by Orna NíChionna

• Remuneration Policy: (summary of current

policy & implementation)
• Base salary
• Pension
• Other benefits
• Annual bonus
• ESP
• All Employee share plans
• Annual Remuneration report: (excuitive,CEO,
non exutives..etc.
• Salary
• Bonus
• Base salary
• Pension
• Other benefits
• Annual bonus
• ESP
• All Employee share plans
Corperate governace report
Directive reports
• SCOPE OF THIS REPORT
• For the purposes of the Companies Act 2006
• Strategic Report
• Governance Report
• Energy and global greenhouse gas emissions
• OTHER GOVERNANCE DISCLOSURES
• Revenue & profit • Dividends
• Concern with risk & viability report • Significant contracts
• Independent auditor • Service agreements
• Political deadlines • Share plans
• Financial investment & risks • License agreement
• Annual general Meeting • Employee Involvement
• Directors • Employee share ownership
• Director powers
• Directors insurance & independences
• Directors share interests
• Amendment for articles associations
• Submental shareholdings
• Share capitals
• voting
Corperate governace report
ROLE OF THE BOARD
It is the responsibility of the Board
• setting strategy and overseeing its implementation by management
• Guarantee successful performance and sustainably for shareholders and wider
stakeholders.
• promoting the long-term success of the Group.
• responsible for oversight of the Group’s systems of governance, internal control and
risk management.
• Specific key decisions and matters have been reserved for approval by the Board.
• Group’s strategy
• the annual budget
• operating plans
• major capital expenditure and transactions
• approval of financial results.
• the dividend and other capital return
• Group’s risk appetite
• other governance issues
Corperate governace report
Role and Responsibilities of the senior independent director:

• provide consultancy for the Chairman

• act as an intermediary for the other Directors and shareholders as necessary.
• chair the Nomination Committee when it is considering succession to the role of the
Chairman of the Board.
• the appraisal of the Chairman’s performance
• if they Share holders has any concerns on any matter that Chairman, CEO ,CFO or
COO and has failed to resolve
• to resolve any significant issues
• dispute between the Chairman and Chief EO
• if shareholders or non-executive Directors concerns not considered by the
Chairman or CEO
• if strategy is not supported by the entire Board
• if there is concern that decisions are being made without the approval of the
full Board,
• succession planning is being ignored
Corperate governace report
Role and Responsibilities of the CEO:
• (CEO) reports to the Chairman and the Board
• responsible for leading the day to day operation of the Group’s business within the
authority delegated by the Board.
• Business strategy and management
• Investment and financing
• Risk management and controls
• Board committees
• Communication
• Other
• Leading.
• Approving Group HR policies
• Promoting, and conducting the affairs of the Group
• Regularly reviewing the Group’s organizational structure and recommending
changes as appropriate.
Corperate governace report
EXECUTIVE COMMITTEE
Corperate governace report
Role of Board of COMMITTEES

The Board is supported in its activities by a number of committees:

• Nomination committee
• Remuneration committee
• Audit committee
The Committees
• can engage third-party consultants
• independent professional advisers
• call upon
• other resources of the Group to assist them in discharging their respective responsibilities.
• committee members and the Company Secretary
• external advisers
• Invite other directors and members of our senior management team attend committee
meetings but only at the invitation of the Chair of the relevant Committee.
Corperate governace report
Report of audit committee

The Board is supported in its activities by a number of committees:

• Nomination committee
• Remuneration committee
• Audit committee
The Committees
• can engage third-party consultants
• independent professional advisers
• call upon
• other resources of the Group to assist them in discharging their respective responsibilities.
• committee members and the Company Secretary
• external advisers
• Invite other directors and members of our senior management team attend committee
meetings but only at the invitation of the Chair of the relevant Committee.
Governor análysis review
• The board of directors are qualified
• The company is well audited
• There is a concern about the COO & CFO by one person
• There is a concern about the board of director has been all
changed the past 6 years (oldest member)
• The governor policies are well considered
• The Remuneration policy is well presented and will motivate
the employees toward success
 As at 30 March 2019 £m 2019%As at 30 March 2018 £m

2018%variances here we divide by total assets

ASSETS
Non-current assets
Intangible assets 221 9.47% 180.1 8.10%
0.0137
Property plant and equipment 306.9 13.15% 313.6 14.10%
-0.0095
Investment properties 2.5 0.10% 2.6
0.11% -0.0001
Deferred tax assets 123.1 5.70% 115.5 5.19%
0.0051
Trade and other receivables 70.1 3% 69.2
3.11% -0.0011
Derivative financial assets – _ 0.3 0.01%

723.6 31.02 681.3

30.64 0.38
Current assets

Inventories 465.1 19.94 411.8

18.50% 19.755
Trade and other receivables 251.1 10.7 206.3
9.20% 10.608
Derivative financial assets 3 0.12 1.6
0.07% 0.1193
Income tax receivables 14.9 0.63 6.7
0.30% 0.627
Cash and cash equivalents 874.5 37.49 915.3
41.17% 37.0783
1608.6 1541.7

Total assets 2332.2   2223

LIABILITIES 2019 %2019 2018 %2018 VARIANCES
Non-current liabilities

Trade and other payables -176.5 7.56% -168.1 7.50%

0.0006
Deferred tax liabilities -3.4 0.14% -4.2 0.18%
-0.0004
Derivative financial liabilities -0.1 0.01% -0.1 0.01%

0
Retirement benefit obligations -1.4 0.06% -0.9 0.04%
0.0002
Provisions for other liabilities and charges -50.7 2.17% -71.4 3.21%

-0.0104
-232.1 -244.7

Current liabilities

Bank overdrafts -37.2 1.59% -23.2 1.04%

0.0055
Derivative financial liabilities -5.5 0.23% -3.8 0.17%
0.0006
Trade and other payables -525.7 22.50% -460.9 20.73%

0.0177
Provisions for other liabilities and charges -34.6 1.48% -32.1 1.44%
0.0004
Income tax liabilities -37.1 1.59% -32.9 1.47%
0.0012
-640.1   -552.9 24.87%

-0.2487
Total liabilities -872.2 37.39 -797.6 35.87%

37.0313
EQUITY 2019 %2019 2018
%2018 VARIANCES
Capital and reserves attributable to owners of the Company

Ordinary share capital 0.2 0.01% 0.2 0.01% 0

Share premium account 216.9 9.30% 214.6 9.56% -0.0026

Capital reserve 41.1 1.76% 41.1 1.84% -0.0008

Hedging reserve 3.5 0.15% 3.8 0.17% -0.0002

Foreign currency translation reserve 227.7 9.76% 214.7 9.60% 0.0016

Retained earnings 965.6 41.40% 946.1 42.55% -0.0115

Equity attributable to owners of the Company 1455 62.80% 1420.5 63.90% -0.011

Non-controlling interest in equity 5 0.21% 4.9 0.22% -0.0001

1460 62.60% 1425.4 64.12%

Total equity -0.0152
 2019 2019%2018 2018% variances

Revenue 2,720.20 100% 2,732.80 100%

Cost of sales -859.4 31.50% -835.4 30.5
-30.185
Gross profit 1,860.80 0.68 1,897.40 -68.746
69.43
Net operating expenses -1,423.60 0.52 -1,487.10
54.41 -53.887
Operating profit 437.2 16% 410.3 15
-14.84
Financing
Finance income 8.7 0.31 7.8 0.28
0.03
Finance expense -3.6 0.13 -3.5 0.12
0.01
Other financing charge -1.7 0.06 -2 0.07
-0.01
Net finance income 3.4 0.12 2.3 0.08
0.04
Profit before taxation 440.6 16.19 412.6 15
1.19
Taxation -101.5 3.73 -119 4.35
-0.62
Profit for the year 339.1 12.4 293.6 10.7
1.7
Attributable to:
Owners of the Company 339.3 12.47 293.5 10.7
1.77
Non-controlling interest -0.2 0.007 0.1 0.003
0.004
Profit for the year 339.1 12.4 293.6 10.7
1.7
Earnings per share
Basic p 82.3 3.02 68.9 2.5 0.52
Diluted p 81.7 3 68.4 2.5
0.5

Reconciliation of adjusted profit before taxation: 2732.8

Profit before taxation 440.6 16.19 412.6 15
1.19
Adjusting items:
Adjusting operating items 0.9 0.03 56.3 2
-1.97
Adjusting financing items 1.7 0.06 2 0.07
-0.01
Adjusted profit before taxation – non-GAAP measure 443.2 16.29 470.9 17.23
-0.94
Adjusted earnings per share – non-GAAP measure
Basic p 82.7 3.04 82.8 3.02
0.02
Diluted p 82.1 3.01 82.1 3
0.01
Dividends per share
Interim p 11 0.4 11 0.4 0
 20192019%revenue2720.2 2018%2018 revenue2732.8 variances
flows from operating activities
ting profit 437.2 16 410.3 15
1
ciation 87.2 3.2 105.8 3.8
-0.6
tisation 28.6 1 25.5 0.93
0.07
mpairment of intangible assets 3.9 0.14 6.5 0.23
-0.09
mpairment of property plant and equipment 7.9 0.3 10.7
0.39 -0.09
n disposal of property plant and equipment and intangible 1.2 0.04 2.7 0.09
-0.05
n disposal of Beauty operations -6.9 0.25 -5.2 0.19
0.06
n derivative instruments -2.4 0.08 -3.5 0.12
-0.04
e in respect of employee share incentive schemes 15.7 0.57 17.1 0.62
-0.05
t from settlement of equity swap contracts 2.5 0.09 0.5 0.01
0.08
ase) / decrease in inventories -59.3 2.17 37.2 1.3
0.87
ase) / decrease in receivables -54.6 2 68.1 2.4
-0.4
se in payables and provisions 54.9 2 115.5 4.22
-2.22
enerated from operating activities 515.9 18.9 791.2 28.9
-10
st received 8.1 0.29 7.2 0.26
0.03
st paid -1.8 0.06 -1.6 0.05
0.01
on paid -110.8 4 -118.4 4.33
-0.33
ash generated from operating activities 411.4 15.12 678.4 24.8
-9.68
ows from investing activities
ase of property plant and equipment -62.6 2.3 -57.5 2.11
0.19
ase of intangible assets -48 1.76 -48.5 1.78
-0.02
eds from disposal of Beauty operations net of cash costs paid 0.6 0.02 61.1
2.24 -2.22
ition of subsidiary – -14.5 0.52 0
0.52
ash outflow from investing activities -124.5 4.5 -44.9 1.65
2.85
ows from financing activities
nds paid in the year -171.1 6.2 -169.4 6.19
0.01
ent to non-controlling interest -11.1 0.4 -3 0.1
0.3
 Burberry Income statement analysis

COGS

880
859.4
860

840 835.4 832.9

820

800

Axis Title
COGS
780 Linear (COGS)
year COGS
2019 859.4 760 752
2018 835.4 740
2017 832.9
720
2016 752
700

680
2019 2018 2017 2016

Axis Title
 operating expenses
1,600.00

1,550.00 1,538.80

1,500.00 1,487.10

operating expenses
year 1,450.00
2019 1,423.60 1,423.60
2018 1,487.10
2017 1,538.80 1,400.00
2016 1,359.80
1,359.80
1,350.00

1,300.00

1,250.00
2019 2018 2017 2016
 operating profit
450.00

440.00
437.20

430.00

year operating profit

420.00
2019 437.20
2018 410.20 410.20
410.00
2017 394.30 402.90
2016 402.90
400.00
394.30

390.00

380.00

370.00
2019 2018 2017 2016
 Revenue
2800
2766
2750 2732.8
2720.2

2700

2650
year Revenue
2019 2720.2 2600
2018 2732.8
2017 2766 2550
2016 2514.7 2514.7
2500

2450

2400

2350
2019 2018 2017 2016
 Net Income & Revenue
year Net income Exponential (Net income)
Revenue Linear (Revenue )

2732.8
2720.2

2766

2514.7
2019

2018

2017

2016
NET REVENUE
YEAR INCOME
2019 339.1 2720.2

Axis Title
2018 293.6 2732.8
2017 287.7 2766
2016 314.6 2514.7

339.1

314.6
293.6

287.7
1 2 3 4

Axis Title
 Burberry balance sheet analysis
year total assets total liabilities
2019 2332.2 872.2
2018 2223 797.6
2017 2,413.40 715.6
2016 2,314.30 693.4

year current assets noncurrent assets

2019 1608.6 723.6
2018 1541.7 681
2017 1,638.60 774.8
2016 1,494.90 819.4

year current liabilities noncurrent liabilities

2019 640 232.1
2018 553 244.7
2017 563 150.5
2016 539 154.4

* Our short term assets covering long term liabilities which is a good indicators for
debt coverage.
 Total Assets & Liabilities
3000

2500 2413.4
2332.2 2314.3
2223

2000

Axis Title
1500

YEAR TOTAL ASSETS TOTAL LIABILITIES

1000 872.2
2019 2332.2 872.2 797.6
2223 797.6 715.6 693.4
2018
2017 2,413.40 715.6
500
2016 2,314.30 693.4

0
2019 2018 2017 2016

Axis Title

total asssts Linear (total asssts)

total laibilities Linear (total laibilities)
 Total Equity

1750

1,697.00
1700

1650
year Total Equity 1,620.00
2019 1460
1600
2018 1,425.00
2017 1,697.00 1550
2016 1,620.00
1500
1,460.00
1450
1,425.00

1400

1350

1300

1250
2019 2018 2017 2016
 Burberry cash flow sheet analysis

Net cash generated from operating activities

800

700 678.4

Net cash generated from 600 560.7

year operating activities
2019 411.4 Net cash generated from operating
2018 678.4 500 activities
2017 560.7 411.3 411.4
Linear (Net cash generated from
operating activities )
2016 411.3 400 Linear (Net cash generated from
operating activities )

300

200

100

0
2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5
 Net cash outflow from investing activities

160

137.5
140

124.5

120

100 95.6
year Net cash outflow from investing activities Net cash outflow from investing
124.5 activities
2019
Linear (Net cash outflow from
2018 44.9 80 investing activities )
2017 95.6
2016 137.5
60
44.9

40

20

0
2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5
 Net cash outflow from financing activities

600

536.1

500

Net cash outflow from

year financing activities
400
2019 343.4
2018 536.1 342.2 343.4 Net cash outflow from financing
2017 342.2 activities
2016 167.1 Linear (Net cash outflow from
300 financing activities )

200
167.1

100

0
2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5
 Net Change in Cash
200

149
150

108

100
83

year Net Change in Cash Net Change in Cash

2019 -55 Linear (Net Change in Cash)
50
2018 83
2017 149
2016 108

0
2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5

-50 -55

-100
Profitability Ratios
Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings compared to its expenses and other relevant
costs incurred during a specific period of time.
Gross Profit Margin = Gross Profit/Sales
Gross Margin chart
2500

2019 2018 2017 2016

2000

Axis Title 1500

YEAR GROSS MARGIN

2019 68.50%
2018 69.50% 1000
2017 69.80%
2016 70%
500

68.50% 69.50% 69.80% 70.00%

0
1 2 3 4

Axis Title

year Linear (year) Linear (year)

Gross Margin Linear (Gross Margin)
 Operating Profit Margin = Operating Profit/Sales

Operating Margin
17%

16% 16%
16%

16%

YEAR OPERATING MARGIN

2019 16%
15%
2018 15%
15%
2017 14.20%
2016 16%
15%

14%

14%

14%

13%
2019 2018 2017 2016

Operating Margin Linear (Operating Margin ) Linear (Operating Margin )

 Return on Assets = Net income/Total Assets

Return on Assets

26%
28%

YEAR RETURN ON ASSETS

2019 15% 2019
2018 13% 2018
2017
2017 12%
2016
2016 14%

22%
24%
Return on Equity = Net income/Total Equity

R etur n on Equity
Return on Equity Linear (Return on Equity) Linear (Return on Equity)

YEAR RETURN ON EQUITY 25%

2019 23% 23%
2018 21% 21%
2017 17% 20% 19%
2016 19% 17%

15%

10%

5%

0%
2019 2018 2017 2016
Net Profit Margin = Net Profit/Sales

Net profit margin

14.00%

12.50% 12.50%

12.00%

10.75%
10.40%
YEAR NET PROFIT MARGIN 10.00%
2019 12.50%
2018 10.75%
2017 10.40%
8.00%
2016 12.50% Net profit margin
Axis Title
Linear (Net profit margin)
Linear (Net profit margin)
Linear (Net profit margin)
6.00%

4.00%

2.00%

0.00%
2019 2018 2017 2016

Axis Title
 • Financial Leverage Ratios
Debt – to – total assets=total debt/total assets
Shows the percentage of the firm’s assets that are supported by debt financing.

year debt to total assets

2019 0.37
2018 0.35
2017 0.29
2016 0.29

Debt to total assets

0.4
0.37
0.35
0.35

0.3 0.29 0.29

0.25
debt to total assets
0.2

0.15

0.1

0.05

0
2019 2018 2017 2016
 Financial Leverage Ratios
Debit-to-Equity=Total debit /Shareholder Equity
Shows the extent to which the firm is financed by debt.

year Total debit to equity

2019 0.59
2018 0.55
2017 0.42
2016 0.42

Total debit to equity

0.7

0.59
0.6
0.55

0.5
0.42 0.42
Total debit to equity
0.4
Linear (Total debit to equity)

0.3

0.2

0.1

0
2019 2018 2017 2016
Activity Ratios
Activity ratios measure a firm's ability to convert different accounts within its
.balance sheets into cash or sales

 Inventory Turnover = COGS/Average Inventory

Inventory Turnover
Inventory Turnover

2
1.9
1.8
1.8
1.6
1.6
1.5

1.4
Year Inventory Turnover
2019 1.2 1.9
2018 1.8
1
2017 1.6
2016 0.8 1.5

0.6

0.4

0.2

0
2019 2018 2017 2016
 Average Age of Inventory = 365/Inventory Turnover

Aver. Age of inventory

192

243

year Aver. Age of inventory

2019 192
2018 202
2017 228
2016 243

202

228

2019 2018 2017 2016

Total Assets Turnover = Sales/Total Assets

Assets turnover
1.25

1.22
year Assets turnover
2019 1.16 1.2
2018 1.22
2017 1.14
2016 1.08 1.16

1.15
1.14
Assets turnover

1.1
1.08

1.05

1
2019 2018 2017 2016
Liquidity Ratios
Liquidity ratios measure a company's ability to pay debt obligations and its margin of
.safety

Quick Ratio = (Current Assets-Inventory)/Current Liabilities

year quick ratio

2019 1.78
2018 2.04
2017 2.01
2016 1.87

quick ratio
2.1
2.05 2.04
2.01
2
1.95
1.9 1.87 quick ratio
Linear (quick ratio)
1.85
1.78
1.8
1.75
1.7
1.65
1.6
2019 2018 2017 2016
Current Ratio = Current Assets/Current Liabilities

year current ratio

2019 2.51
2018 2.78
2017 2.91
2016 2.77

current ratio
3

2.91
2.9

2.8 2.78 2.77

2.7 current ratio

Linear (current ratio)

2.6

2.51
2.5

2.4

2.3
2019 2018 2017 2016
Cash Ratio= Cash + Marketable securities/Current liabilities  

year Cash ratio

2019 1.36
2018 1.65
2017 1.49
2016 1.32

Cash ratio
1.8
1.65
1.6
1.49
1.36
1.4 1.32

1.2

Cash ratio
1
Linear (Cash ratio)

0.8

0.6

0.4

0.2

0
2019 2018 2017 2016
 Earning per share
EPS=NET INCOME /Average outstanding shares of the company

basic share diluted

year share
2019 82.3 81.7
2018 68.9 68.4
2017 65.3 64.9
2016 70 69.4

EPS
180
81.7 There is growth in EPS by 19.5% from the previous year.
160
68.4 69.4
140 64.9
120

100
82.3
80 68.9 70
65.3
60

40

20

0
2019 2018 2017 2016

basic share diluted share

 ?Our analysis as a financial analyst to invest in Burberry company or not

.There is growth in EPS by 19.5% from the previous year -1

.Earning grow by 7.6% from previous year-2

Pay high & reliable dividend of 1.82%-3

.There is increase in net profit margin by 16%-4

.There is increase in ROE return on equity by 9.5% from previous period -5

.There is increase in ROA return on assets by 15% from previous period -6

.There is increase in OPM operating profit margin by 10% from previous year -7

.There is increase in Net cash outflow from investing activities by 177% from previous year -8

9-our short term assets covering long term liabilities which is a good indicators for debt coverage.
 
.There is decrease in operating expenses by 4.5% from previous year-10

.There is increase in net income by 15% from previous year-11

.There is increase in operating profit by 7% from previous year-12

.There is growth in average age of inventory by 5.2%-13

.There is increase in inventory turnover by 5.5%-14

.Retained earnings increased by 2% from the last year-15

 Financial RISK Analysis
…No risks detected for Burberry because
.The company is currently profitable-
.The earning & revenue forecast are growing-
.Debt level is low & not considered at risk-
.Dividend of 1.82% is sustainable-
.Profit margin improved & become profitable-
.Shareholders have not been meaningfully diluted in the past year-
.Debt level….debt to equity ratio is 3.6% is considered satisfactory-
.Burberry's debt is well covered by operating cash flow -
.Burberry's interest payments on its debt are well covered by EBIT -
 Should We Invest in Burberry

• In Millward Brown’s 2015 BrandZ Top 100 report on the Most Valuable Luxury
Brands, Burberry’s brand value was $5.7 billion. That’s huge. So although Burberry’s
value declined last year alongside most other luxury brands struggling with a dip in
purchases by Russian and Chinese shoppers and a harmonization of prices across
the world, over the last five years it actually grew—by as much as 71%, which is
almost twice the pace of the category brand-value growth.
• 
• Brand, perhaps unsurprisingly, is one of the most important controllable assets in
the arsenal of luxury business and this is particularly true for Burberry. It might not
be as famous as some of the world’s biggest luxury brand groups like LVMH, but
Burberry does have a strong, aspirational and distinctive brand (and a strong
emotional connection with consumers which will encourage them to continue to
buy the brand). This is something that Burberry needs to leverage for the future
growth potential of the business.
 Barberry's Future
According to financial analysis for Burberry if we will invest in it or not ?
Of course YES
1- There is growth in EPS (earning per share) by 19.5% from the previous year.
2-Earning grow by 7.6% from previous year.
3-Pay high & reliable dividend of 1.82%
4-There is increase in net profit margin by 16%.
5-There is increase in ROE return on equity by 9.5% from previous period.
6-There is increase in ROA return on assets by 15% from previous period.
7-There is increase in OPM operating profit margin by 10% from previous year.
8-There is increase in Net cash outflow from investing activities by 177% from previous year. 9-our
short term assets covering long term liabilities which is a good indicators for debt coverage.
10-There is decrease in operating expenses by 4.5% from previous year.
11-There is increase in net income by 15% from previous year. 12-There is increase in operating
profit by 7% from previous year. 13-There is growth in average age of inventory by 5.2%.
14-There is increase in inventory turnover by 5.5%.
15-Retained earnings increased by 2% from the last year.
Finally, according to strategic analysis this business (Burberry), we found this business is great
opportunity to invest in it according to financial analysis.
The final decision is the company worth investment but with minor concerns (Low risks)
Any Questions