REG - B&M European - Golden Quarter - strong profitable growth

B&M European Value Retail SAAnnouncement

09/01/2024 08:15

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RNS Number : 0146Z  B&M European Value Retail S.A.  09 January 2024

 

 

9 January 2024

Golden Quarter - strong profitable growth

 

B&M European Value Retail S.A. ("the Group"), the UK's leading variety
goods value retailer, today provides a trading update for the third quarter
("Q3") of its current financial year ("FY24"), relating to the 13 week period
from 24 September 2023 to 23 December 2023.

 

Highlights

 

 Fascia revenue perfomance  Q3 FY24        Q3 YTD FY24

                            £m      %      £m      %
 B&M UK(1)                  1,350m  3.7%   3,395m  6.3%
 B&M France                 151m    11.3%  383m    19.8%
 Heron Foods                144m    11.7%  416m    15.1%

 

 

 ·             Group revenue growth in the quarter of 5.0% year-on-year ("YoY") to £1,645m.
               Q3 YTD growth of 8.1% YoY to £4,194m on a constant currency basis(2)
 ·             In the 14 week period to 30 December 2023, B&M UK like-for-like(3) revenue
               growth was 1.2%, a strong quarter given prior year comparatives, performance
               was driven by positive transaction numbers

 ·             Excellent general merchandise volume performance delivered strong sales
               participation and high sell-through, exiting the quarter with a clean Group
               inventory position flat YoY

 ·             On track to open 76 gross new stores across the Group in FY24 (45 in B&M
               UK, 11 in B&M France and 20 in Heron Foods)
 ·             Consistent with the Group's capital allocation framework, the Board will be
               declaring a special dividend of 20.0p per Ordinary Share to be paid on 9
               February 2024 to shareholders on the register at 19 January 2024. The
               ex-dividend date will be 18 January 2024(4)

 

 

Alex Russo, Chief Executive, said,

 

"The performance across the Golden Quarter has been pleasing, with strong
operational execution across the three businesses. Our strategy remains
unchanged - we are an everyday low-price discounter with a laser-focus in
keeping excellence in retail standards and our costs the lowest. This allows
us to provide our products at the best price to all customers - many of whom
continue to face significant cost-of-living pressures.

 

We are well-positioned for the year ahead and we reiterate our guidance for
Group adjusted EBITDA (pre-IFRS 16) within our target range of £620m - £630m
for FY24 (FY23: £573m). Our store pipeline is strong and we will open not
less than 45 B&M UK stores in each of the next two financial years,
driving disciplined cash generating growth."

 

 

 

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 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 14-month
approach has been adopted as it excludes the 2-month halo period which new
stores experience following opening.

4.     Dividends are stated as gross amounts before a deduction of
Luxembourg withholding tax which is currently 15%.

 

Conference call

 

There will be a conference call for investors and analysts to discuss this
trading update on Tuesday 9 January 2024 at 09:00am (UK).

 

Investors and analysts should register for the call using the following link:

 

https://register.vevent.com/register/BIf587de45def7488d9fdfc523033aa99f
(https://register.vevent.com/register/BIf587de45def7488d9fdfc523033aa99f)

 

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 717 stores in
the UK operating under the "B&M" brand, 331 stores under the "Heron Foods"
and "B&M Express" brands, and 122 stores in France also operating under
the "B&M" brand as at 23 December 2023. 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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