REG - B&M European - Q1 FY25 Trading Update

B&M European Value Retail SAAnnouncement

16/07/2024 07:00

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RNS Number : 4824W  B&M European Value Retail S.A.  16 July 2024

16 July 2024

 

Well-positioned as we exit the Spring/Summer season

 

B&M European Value Retail S.A. ("the Group"), the UK's leading variety
goods discount retailer, today provides a trading update for the first quarter
("Q1") of its current financial year ("FY25"), relating to the 13 week period
from 31 March 2024 to 29 June 2024.

 

Highlights

 

                                                   £m        %

 Revenue performance
 B&M UK(1)                                         £1,080m   1.5%
 B&M France*                                       £126m     7.5%
 Heron Foods                                       £139m     2.7%
 Group revenues and growth (constant FX rates(2))  £1,345m   2.4%

             *B&M France revenue growth was 9.6% in local
currency

 

 ·             Group revenues(2) increased 2.4%, driven by volume and a disciplined store
               opening programme across the three businesses

 ·             Strong, profitable progress made on the B&M UK store openings, with 19
               gross stores opened in Q1, on track for 45 gross new store openings in the
               year. All stores opened since last year are performing ahead of expectations

 ·             France added 2 new stores in Q1 and remain on track for 11 new stores this
               year
 ·             B&M UK like-for-like ("LFL")(3) of (3.5)%, excluding the Easter YoY timing
               impact of (1.6)% in Q1. This is against exceptionally strong comparatives of
               +9.2% in Q1 of last year and unseasonal weather in April and May this year

 ·             Well-planned seasonal stock buy, particularly in Gardening, has delivered high
               sell-through in the quarter with no markdown risk in Spring/Summer. B&M UK
               Q1 gross margin performance has been strong and in line with expectations

 ·             The three businesses are well set up commercially and operationally into Q2.
               Availability is very strong, product ranges and price points in general
               merchandise are market leading

 ·             Our logistics capacity across the UK and France continues to support volume
               growth well. Our network configuration in the UK has been strengthened in the
               last two years with additional capacity in France already underway

 ·             Continue to expect profitable cash generating growth across the full financial
               year, underpinned by the Group's strong fundamentals and normalising
               comparatives

 ·             Half year financial results for the 26 weeks to 28 September 2024 will be

             published on 14 November 2024 when we will provide full year narrow guidance
               as normal

 

Alex Russo, Chief Executive, said:

"The growth fundamentals of our business are strong, with a highly disciplined
approach on pricing, product and high operational standards. We continue to
offer our customers exceptional value at a time when household incomes are
under pressure. Ahead of Q2, we have launched our Everyday Value range with
more than 500 new lines in core categories across home, electrical and pet in
the UK and France. As we transition towards Autumn/Winter in the months ahead,
our relentless focus on Everyday Low Price and Everyday Low Cost will ensure
we continue to serve our customers well.

 

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.     B&M UK Q1 like-for-like sales of (5.1)% does not include the
timing effect of Easter which occurred at the end of FY24. Incorporating the
timing effect of Easter (week 52 and week 53), B&M UK like-for-like sales
over the 15-weeks to 29 June 2024 was (3.5)%.

 

Conference call

A call for investors and analysts will be held today at 09:00 (BST). Investors
and analysts should register for the call using the following link:

https://register.vevent.com/register/BI1ee9cb5853164e2b8635646c03c9a752
(https://register.vevent.com/register/BI1ee9cb5853164e2b8635646c03c9a752)

 

A further call for North American investors only is scheduled today at 16:00
(BST). To register please contact Dave McCarthy via email at
dave.mccarthy@bmstores.co.uk (mailto:dave.mccarthy@bmstores.co.uk)

 

Supplemental information

We report sales on a 13-week and 52-week retail calendar - which uses 364 days
in a year. A 53(rd) week was added to our reporting calendar in FY24. The
additional week only affects comparability of performance in our statutory
sales reporting, as shown below.

 

 (Period end dates)  FY25 statutory reporting periods (13-weeks unless indicated)
                     Q1                Q2                Q3                Q4
 FY25                29/06/2024        28/09/2024        28/12/2024        29/03/2025
 FY24                24/06/2023        23/09/2023        23/12/2023        30/03/2024*

                     FY25 LFL reporting periods (13-weeks)
                     Q1                Q2                Q3                Q4
 FY25                29/06/2024        28/09/2024        28/12/2024        29/03/2025
 FY24                01/07/2023        30/09/2023        30/12/2023        30/03/2024

 

*Q4 in FY24 was a 14-week period.

 

Enquiries

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 755 stores in
the UK operating under the "B&M" brand, 335 stores under the "Heron Foods"
and "B&M Express" brands, and 126 stores in France also operating under
the "B&M" brand as at 29 June 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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