REG - B&M European - Strong Q3 FY23 Trading

B&M European Value Retail SAAnnouncement

05/01/2023 07:00

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RNS Number : 7228L  B&M European Value Retail S.A.  05 January 2023

 

 

5 January 2023

B&M European Value Retail S.A.

 

Strong Q3 FY23 Trading

 

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 ("FY23"), relating to the 13 week period
from 25 September 2022 to 24 December 2022.

 

HIGHLIGHTS

 

·      Group revenue growth in the quarter of 12.3% year-on-year ("YoY")
to £1,567m (+12.3% constant currency basis)(1)

 

·      Total B&M UK fascia(2) revenue in Q3 up 10.3% YoY, with
one-year like-for-like(3) ("LFL") revenue increasing by 6.4%. Customer
transaction numbers remained strong and positive YoY

 

·      Very good performance across all B&M UK categories, both in
grocery and general merchandise. Excellent sell-through in key general
merchandise ranges supporting improved gross margin performance

 

·      Stock disciplines remained robust and allowed stock reduction of
circa £100m YoY

 

·      Trading momentum in B&M France has continued through Q3, with
revenue up 24.9% YoY

 

·      Trading momentum in Heron Foods has continued through Q3, with
revenue up 22.5% YoY

 

·      B&M's sourcing model and its flexibility provides a strong
point of differentiation. The supply chains across the three businesses
executed well in the quarter

 

·      FY23 Group adjusted EBITDA(4) (on a pre-IFRS16 basis) now
expected to be in the range of £560m to £580m, ahead of current analysts'
consensus estimate of £557m(5)

 

·      Consistent with our capital allocation framework, the Board
intends to declare a special dividend of 20.0p per Ordinary Share to be paid
on 3 February 2023 to shareholders on the register at 13 January 2023(6). The
ex-dividend date will be 12 January 2023

 

 

Alex Russo, Chief Executive, said,

 

"Our strong momentum throughout the Golden Quarter across the businesses
demonstrates the strength of our unchanged strategy to relentlessly focus on
price, product and excellence in retail execution. Despite the challenging
macroeconomic environment, we will continue to work hard to help both existing
and new customers manage the cost-of-living crisis. The business has exited
the quarter well and will remain focused on disciplined execution."

 

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

 

 

                                                         Q3        Q3                   YTD       YTD

                                                         FY23      FY22                 Q3 FY23   Q3 FY22
 Total Group revenues                                    £1,567m   £1,395m              £3,877m   £3,663m
 B&M UK(2, 7)                                            £1,302m   £1,181m              £3,195m   £3,091m
 B&M France                                              £136m            £109m         £320m     £264m
 Heron Foods(2)                                          £129m     £105m                £362m     £308m
 Change in total group revenues at constant currency(1)  12.3%     0.1%                 5.8%      0.9%
 B&M UK one-year LFL(3) revenue growth                   6.4%      (6.2)%               0.1%      (5.5)%

 

 

                          Q3        Q3

                          FY23      FY22

 Total number of stores    1,133    1,110

 B&M UK(2)                 705      693

 B&M France                113      107

 Heron Foods(2)            315                            310

 

 

 

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 FY22. This 14-month
approach has been adopted as it excludes the two-month halo period which new
stores experience following opening.

 

4.     The Directors consider adjusted 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 figures exclude the impact of IFRS 16, both to maintain
comparability with prior periods and as management consider that the pre-IFRS
16 measure of rental costs is key to the operational management of the
business.

 

5.     The consensus estimate for FY23 Group adjusted EBITDA is based upon
the average of 16 analyst estimates that have been updated since announcing
the FY23 interim results on 10 November 2022.

 

6.     The dividend declaration is subject to completion of Luxembourg
regulatory procedures and will be subject to a deduction of Luxembourg
withholding tax of 15%.

 

7.     B&M UK revenues in Q3 FY23 include £10.7m of wholesale
revenues (Q3 FY22: £12.7m) and £27.7m year to date (YTD Q3 FY22: £36.8m).

 

 

Conference call

 

There will be a conference call for investors and analysts to discuss this
Trading Update on Thursday 5 January 2023 at 09:00am (UK).

 

You can register for the call using the following link:

 

https://register.vevent.com/register/BI5aa4bfe42ddc4f08a269cb0dc5874b8d
(https://register.vevent.com/register/BI5aa4bfe42ddc4f08a269cb0dc5874b8d)

 

 

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 +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 705 stores in
the UK operating under the "B&M" brand, 315 stores under the "Heron Foods"
and "B&M Express" brands, and 113 stores in France operating under the
"B&M" brand as of 24 December 2022. 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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