REG - B&M European - FY24 Post Close Trading Statement

B&M European Value Retail SAAnnouncement

16/04/2024 07:00

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RNS Number : 7005K  B&M European Value Retail S.A.  16 April 2024

 

 

 

 

 

16 April 2024

FY24 Post Close Trading Statement

 

Volume growth led delivery at the top end of guidance

 

B&M European Value Retail S.A. ("the Group"), the UK's leading variety
goods value retailer, today provides an update for the 53 week financial
reporting period to 30 March 2024 ("FY24").

 

Highlights

 

                                                                       FY23

 Fascia revenue performance        FY24              FY24              y-o-y %

                                   £m                y-o-y %

 B&M UK((1))                       £4,410m           8.5%              4.0%
  B&M France                        £514m            19.2%             22.1%
 Heron Foods                       £560m             15.3%             18.1%

 ·               Group revenues of £5.5bn increased by 10.1% (+10.1% constant currency(2))
                 underpinned by volume growth and positive like-for-like(3) ("LFL")
                 performance. Group revenue growth also benefitted from the extra week of
                 trading and early Easter timing, which will not be repeated in FY25

 ·               B&M UK Q4 LFL(3) was 2.9% in the 14 week period to 30 March 2024. This was
                 driven by strong volume performance across both FMCG and general merchandise.
                 FY24 B&M UK LFL(3) was 3.7%, driven by increased customer transaction
                 numbers

 ·               Opened 47 B&M UK gross new stores, two ahead of previous guidance. The
                 openings are trading well, including those Wilko stores acquired in the year,
                 which are performing ahead of expectations

 ·               FY24 Group adjusted EBITDA (pre-IFRS 16) is expected to be £629m, at the top
                 end of our £620m-£630m guidance range. This is a 9.8% increase versus FY23
                 (FY23: £573m) and 83.9% higher versus FY20

 ·               Strong operating cash generation, supported by a clean inventory exit
                 position, has resulted in leverage(4) beneath 1.2x (FY23: 1.3x), after payment
                 of a £201m special dividend in February 2024

 ·               Cumulative cash distributions of £1.8bn paid during the financial periods
                 between FY21 and FY24, demonstrating a continued disciplined approach to
                 capital returns and shareholder value creation

 

Alex Russo, Chief Executive, said,

 

"The Group has performed well in the year delivering strong operational
execution. We serve our customers through a relentless focus on everyday low
prices (EDLP), great product ranges and excellence in operational standards.
This delivers profitable, cash generating growth for our shareholders. The
business and team are well set up for the year ahead, our pipeline remains on
track to open not less than 45 UK B&M stores in each of the next two
financial years and our French and Heron businesses continue to demonstrate
significant profitable growth potential."

 

Notes:

1.     References in this announcement to the B&M business include the
B&M fascia stores in the UK except for the 'B&M Express' fascia
stores. References in this announcement to the Heron Foods business include
both the Heron Foods fascia and B&M Express fascia convenience stores in
the UK.

2.     Constant currency comparison involves restating the prior year Euro
revenues using the same exchange rate as that used to translate the current
year Euro revenues.

3.     One-year like-for-like revenues relate to the B&M UK estate
only (excluding wholesale revenues) and are based on either 53 week vs. 53
week or 14 week vs. 14 week comparison periods. They include each store's
revenue for that part of the current period that falls at least 14 months
after it opened compared with its revenue for the corresponding part of FY23.
This approach has been adopted as it excludes the 2-month halo period which
new stores experience following opening.

4.     Defined as Net Debt (pre-IFRS 16, excluding capitalised operating
leases) / Group Adjusted EBITDA (pre-IFRS16).

 

Conference call

 

There will be a conference call for investors and analysts to discuss this
trading update on Tuesday 16 April 2024 at 09:00am (UK). Investors and
analysts should register for the call using the following link:

 

https://register.vevent.com/register/BI8ced413966e749d2a90707c64b580de0
(https://register.vevent.com/register/BI8ced413966e749d2a90707c64b580de0)

 

Preliminary Results Presentation - Wednesday 5(th) June 2024 at 09:30 GMT

 

Enquiries

 

B&M European Value Retail S.A.

For further information please contact: +44 (0) 151 728 5400 Ext. 6363

Alex Russo, Chief Executive Officer

Mike Schmidt, Chief Financial Officer

Dave McCarthy, Head of Investor Relations, Investor.relations@bandmretail.com

 

Media

For media please contact:

Sam Cartwright, H-advisors, sam.cartwright@h-advisors.global +44 (0) 7827 254
561

Jonathan Cook, H-advisors, jonathan.cook@h-advisors.global
(mailto:jonathan.cook@h-advisors.global) +44 (0) 7730 777 865

 

Disclaimer

 

This announcement contains statements which are or may be deemed to be
'forward-looking statements'. Forward-looking statements involve risks and
uncertainties because they relate to events and depend on events or
circumstances that may or may not occur in the future. All forward-looking
statements in this announcement reflect the Company's present view with
respect to future events as at the date of this announcement. Forward-looking
statements are not guarantees of future performance and actual results in
future periods may and often do differ materially from those expressed in
forward-looking statements. Except where required by law or the Listing Rules
of the UK Listing Authority, the Company undertakes no obligation to release
publicly the results of any revisions to any forward-looking statements in
this announcement that may occur due to any change in its expectations or to
reflect any events or circumstances arising after the date of this
announcement.

 

About B&M European Value Retail S.A.

 

B&M European Value Retail S.A. is a variety retailer with 741 stores in
the UK operating under the "B&M" brand, 335 stores under the "Heron Foods"
and "B&M Express" brands, and 124 stores in France also operating under
the "B&M" brand as at 30 March 2024. It was admitted to the FTSE 100 index
on 21 September 2020.

 

The B&M Group was founded in 1978 and listed on the London Stock Exchange
in June 2014. For more information, please visit www.bandmretail.com
(http://www.bandmretail.com)

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