REG - B&M European - Q3 FY22 Trading Update

B&M European Value Retail SAAnnouncement

06/01/2022 07:00

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RNS Number : 5707X  B&M European Value Retail S.A.  06 January 2022

 

 

6 January 2022

B&M European Value Retail S.A.

 

Q3 FY22 Trading Update

 

Strong Christmas performance drives full-year profit upgrade

 

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 ("FY22"), relating to the 13 week period
from 26 September 2021 to 25 December 2021.

 

Highlights

 

·      Group revenue growth in Q3 FY22 of 0.1% year-on-year on a
constant currency basis(1)

 

·      Total B&M UK fascia(2) revenue in Q3 down (2.5)%
year-on-year, with one-year like-for-like(3) ("LFL") revenue down (6.2)% and
up 14.0% on a two-year basis versus pre-pandemic levels of Q3 FY20

 

·      Strong performance across categories, with excellent sell-through
of Seasonal ranges supporting gross margin in the quarter

 

·      9 gross new B&M UK fascia(2) stores opened in Q3, with 2
closures.  Expect to open 13 further stores before FY22 year-end

 

·      Performance in Heron Foods(2) continues to improve, with positive
two-year LFL revenue growth in Q3 FY22

 

·      Sustained momentum in B&M France, with Q3 revenue up 30.0%
year-on-year and all but one of the 107 stores now under the B&M fascia

 

·      Will reward over 24,000 colleagues for their considerable efforts
this year with a discretionary bonus payment of an extra week's wages in
January

 

·      FY22 Group adjusted EBITDA(4) (on a pre-IFRS16 basis) now
expected to be in the range of £605m to £625m, ahead of the current
analysts' consensus estimate of £578m(5)

 

Simon Arora, Chief Executive, said,

 

"The Group has delivered a very strong Golden Quarter, with our two-year
like-for-like performance demonstrating strong retention of new customers.
Our decision to take receipt of imported Christmas stock early in the season
meant we were able to provide customers with great products at great prices.
The consistency of performance in the core B&M UK business reflects the
growing appeal of our stores as a destination visit for seasonal products, as
well as the strength of our supply chain.  I would like to thank all of our
colleagues for helping to deliver our best-ever Christmas.

 

Although the pandemic continues to create challenges for retailers and
consumers alike, our relentless focus on value-for-money remains undiminished.
Despite ongoing supply chain disruption, inflationary pressures and
uncertainty surrounding possible Covid-related restrictions, we remain
confident in B&M's prospects for 2022."

 

 

Revenue

 

                                                    Q3          Q3          YTD         YTD

                                                    FY22        FY21        Q3 FY22     Q3 FY21
 Total Group revenues                               £1,395.2m   £1,398.5m   £3,663.2m   £3,640.6m
 B&M UK(2, 6)                                       £1,181.1m   £1,211.8m   £3,090.6m   £3,097.2m
 Heron Foods(2)                                     £105.2m     £102.9m     £308.3m     £319.1m
 France                                             £108.8m     £83.7m      £264.2m     £224.3m
 Total Group revenue growth (constant currency)(1)  0.1%        22.5%       0.9%        24.2%
 B&M UK one-year LFL(3) revenue growth              (6.2)%      21.1%       (5.5)%      22.2%
 B&M UK two-year LFL(3) revenue growth              14.0%       n/a         15.7%       n/a

 

 

Store Roll Out

 

                    Q3      Q3

                    FY22    FY21

 Number of Stores

 Group              1,110   1,075

 B&M UK(2)          693     673

 Heron Foods(2)     310     298

 France             107     104

 

This announcement contains inside information which is disclosed in accordance
with the Market Abuse Regulation.

 

1.     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.

 

2.     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.

 

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 FY21. This 14 month
approach has been adopted as it excludes the two month halo period which new
stores experience following opening.  Two-year like-for-like revenues also
relate to the B&M UK estate only, and includes each store's revenue for
that part of the current period that falls at least 26 months after it opened
compared with its revenue for the corresponding part of FY20.

 

4.     The Directors consider adjusted EBITDA figures to be more
reflective of the underlying business performance of the Group and believe
that this measure provides additional useful information for investors on the
Group's performance. Adjusting items are the effects of derivatives, one off
refinancing fees, foreign exchange on the translation of intercompany balances
and the effects of revaluing or unwinding balances related to the acquisition
of subsidiaries.

 

5.     The consensus estimate for FY22 Group adjusted EBITDA is based upon
the average of 13 analyst estimates that have been updated since announcing
FY22 Interim results on 11 November 2021.

 

6.     B&M UK revenues in Q3 FY22 include £12.7m of wholesale
revenues (Q3 FY21: £16.8m) and £36.8m year to date (YTD Q3 FY21: £37.2m).

 

Enquiries

 

B&M European Value Retail S.A.

For further information please contact +44 (0) 151 728 5400 ext 5763

Simon Arora, Chief Executive

Alex Russo, Chief Financial Officer

Jonny Armstrong, Head of Investor Relations

Investor.relations@bandmretail.com

 

Media

For media please contact +44 (0) 207 379 5151

Sam Cartwright, Maitland

bmstores-maitland@maitland.co.uk (mailto:bmstores-maitland@maitland.co.uk)

 

 

 

Notes to editors

B&M European Value Retail S.A. is a variety retailer with 693 stores in
the UK operating under the "B&M" brand, 310 stores under the "Heron Foods"
and "B&M Express" brands, and 107 stores in France operating under both
the "Babou" and "B&M" brands as at 25 December 2021. 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.bmstores.co.uk
(http://www.bmstores.co.uk) .

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