Marks and Spencer 2011 Annual Report Download - page 37

The comparative period was a 53 week reporting period. In order
to make a comparison to last year, all comparative numbers in the
Financial review are stated on a 52 week basis unless specified
otherwise. Last year’s 52 week results exclude UK revenue of
£169.7m (£76.6m General Merchandise and £93.1m Food) and
UK variable operating costs of £13.4m, that relate only to the 53rd
week, as well as International operating profits of £7.4m and a net
interest charge of £2.5m. The 52 week UK operating costs stated
include annual costs on the same basis as reported in any 52
week reporting period.
Revenues
Group revenues were up 4.2% driven by growth in like-for-like
sales in the UK and a good performance in our International
business. Revenue growth by area, as reported by period was:
Total revenue % Q1 Q2 Q3* Q4* FY
UK
Clothing 7.4 7.8 4.7 –3.0 4.2
Home 4.1 9.3 2.7 –6.2 1.6
General Merchandise 7.0 8.0 4.4 –3.4 3.9
Food 2.9 5.2 3.5 4.9 4.1
Total UK 4.8 6.5 4.0 1.0 4.0
International 0.9 6.2 4.5 12.6 6.1
Total Group 4.4 6.5 4.0 2.3 4.2
Like-for-like revenue % Q1 Q2 Q3 Q4 FY
UK
General Merchandise 6.0 7.0 3.8 –3.9 3.2
Food 1.5 3.7 1.8 3.4 2.6
Total UK 3.6 5.3 2.8 0.1 2.9
UK revenues were up 4.0% in total with a like-for-like increase
of 2.9%, reflecting improvements in our product offer as well as
better market conditions in the first half of the year. We added
c.1.8% of space, c.1.5% in General Merchandise and c.2.0% in
Food, on a weighted average basis.
International revenues were up 6.1%, or 7.9% on constant
currency basis. The majority of our owned territories delivered
good growth, with Czech Republic, India and China particularly
strong. Trading conditions continue to be difficult in the Republic
of Ireland and Greece. Our franchise business continued to
perform well, with territories including Russia and the Far East
growing strongly, and the Middle East returning to growth.
Operating profit
Underlying operating profit was £824.9m, up 5.9%.
In the UK, underlying operating profit was up 5.3% at £677.9m.
Gross margin was level at 41.2%. General Merchandise gross
margin was down c.40 basis points at 52.1% as a result of
increased markdowns, commodity price inflation and adverse
currency pressures which more than offset the benefits of better
sourcing. Food gross margin was up c.20 basis points at 30.8%
as a result of better management of promotions and waste
helping to mitigate the commodity price increases and the
annualisation of last year’s price investment.
Underlying UK operating costs were up 3.5% to £2,951.3m.
A breakdown of the costs is shown below:
52 weeks ended
2 Apr 11
£m
27 Mar 10
£m % inc
Retail staffing 877.6 858.4 +2.2
Retail occupancy 1,011.8 972.7 +4.0
Distribution 393.5 394.4 –0.2
Marketing and related 142.9 122.9 +16.3
Support 525.5 501.8 +4.7
Total 2,951.3 2,850.2 +3.5
Summary of results
2010/11
£m
(52 wks)
2009/10
£m
(53 wks)
2009/10
£m
(52 wks)
change
%
(52 wks)
Group revenue 9,740.3 9,536.6 9,347.6 4.2%
UK 8,733.0 8,567.9 8,398.2 4.0%
International 1,007.3 968.7 949.4 6.1%
Underlying operating profit 824.9 843.9 779.3 5.9%
UK 677.9 701.2 644.0 5.3%
International 147.0 142.7 135.3 8.6%
Underlying profit before tax 714.3 694.6 632.5 12.9%
Non-underlying profit items 66.3 8.1 8.1
Profit before tax 780.6 702.7 640.6 21.9%
Underlying basic EPS 34.8p 33.0p 30.0p 16.0%
Basic EPS 38.8p 33.5p 30.5p 27.2%
Dividend per share (declared) 17.0p 15.0p 15.0p 13.3%
* Before adjusting for the timing of the Christmas sales.
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