Burberry Group PLC (LSE:BRBY) has reported an uptick in full-year profits as its fourth-quarter sales rebounded thanks to the easing of coronavirus pandemic restrictions in China.
Adjusted operating profit grew by 21% to £624mln in the year to 1 April 2023, while revenues jumped to £3.09bn from £2.8bn, the luxury goods company said in a statement.
Sales accelerated in the fourth quarter, the FTSE 100-listed firm said, thanks to the easing of restrictions in Mainland China, with revenues up 13% in the region compared to the same period 12 months prior.
Burberry plans to return £400mln to shareholders by way of a buyback this year “in line with capital allocation policy.”
“We have delivered a strong financial performance, supported by good progress in our core leather goods and outerwear categories, with revenue accelerating in the fourth quarter as growth rebounded in Mainland China,” said Burberry chief executive Jonathan Akeroyd in the results statement.
Looking ahead, the company said it remains mindful of the macroeconomic and geopolitical environment but kept its current year and medium targets in place.
Based on currency spot rates as of 21 April, it expects to incur a £70mln headwind on revenue and £40mln headwind on adjusted operating profit, it said.
Burberry proposed a dividend of 61p for the year, a 30% increase.
“While the external environment remains uncertain, I am confident we can achieve our full-year and medium-term targets as we focus on executing our plan to realise Burberry's potential as the modern British luxury brand,” Akeroyd added.