REG - B&M European - Trading Statement

B&M European Value Retail SAAnnouncement

07/01/2021 07:02

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RNS Number : 8322K  B&M European Value Retail S.A.  07 January 2021

 

 

 

7 January 2021

B&M European Value Retail S.A.

 

Q3 FY21 Trading Update

 

Strong Golden Quarter sales 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 ("FY21"), relating to the 13 week period
from 27 September 2020 to 26 December 2020.

 

Highlights

 

·      Group revenue(1) growth in the quarter of +22.5% on a constant
currency basis(2)( )(Q3 FY20: +9.9%)

 

·      B&M UK stores(3) revenue growth of +26.6%, including
like-for-like(4) ("LFL") growth of +21.1% in the quarter   (Q3 FY20: +0.3%)

 

·      18 gross new B&M UK stores(3) opened in Q3, 16 net of
closures, helping to create over 500 new jobs

 

·      Heron Foods(3), the value convenience store chain, delivered
another quarter of solid LFL sales growth

 

·      Babou and B&M France revenues in Q3 decreased by 1.4%,
reflecting the 4 week lockdown restrictions that ended on 28 November 2020.
Outside of the lockdown period, sales performance was strong

 

·    A further special dividend(5) of 20.0p per share (equating to
approximately £200m in total) in line with our capital allocation
framework.  The special dividend will be paid on 29 January 2021 to
shareholders on the register at 15 January 2021. The ex-dividend date will be
14 January 2021

·     Previous guidance for FY21 Group adjusted EBITDA(6) (on a
pre-IFRS16 basis), issued on 3 December 2020, narrowed to be within the range
of £540m to £570m, stated after the voluntary payment of business rates in
FY21 amounting to approximately £80m

 

 

Simon Arora, Chief Executive, said,

 

"Our trading performance is testament to the hard work and commitment of all
our colleagues, to whom I express my sincere thanks. The safety and wellbeing
of our customers and colleagues has remained our priority during these
unprecedented times, whilst we have worked hard to provide customers with the
everyday essentials they need. We are awarding some 30,000 store and
distribution colleagues an extra week's wages in recognition of their
considerable efforts.

 

Notwithstanding our status as an essential retailer, with lockdown
restrictions in the UK having tightened there remain uncertainties ahead.
With our combination of exceptional value and convenient Out of Town
locations, we are confident that our business model will prove highly relevant
to the needs of customers in
2021."

 

 

Revenue

 

                                                     Q3           Q3           YTD          YTD

                                                     FY21         FY20(1)      Q3 FY21      Q3 FY20(1)

 Total Group revenues(1)                             £1,398.5m    £1,138.0m    £3,640.6m    £2,926.6m

 B&M(3, 7)                                           £1,211.8m    £957.4m      £3,097.2m    £2,413.8m

 Heron(3)                                            £102.9m      £95.6m       £319.1m      £283.8m

 Babou                                               £83.7m       £85.0m       £224.3m      £229.0m

 Total Group revenue growth (constant currency)(2)   +22.5%       +9.9%        +24.2%       +17.5%

 B&M UK like-for-like revenue growth(4)              +21.1%       +0.3%        +22.2%       +2.3%

 

 

Strategy

At the end of Q3 FY21, there were a total of 1,075 stores across the Group.

 

The B&M UK business now has 673 stores, having opened 18 gross new stores
in Q3, offset by 2 closures.  The business remains on track to open a further
18 stores in Q4 and so 45 gross new stores this financial year, offset by 10
closures.  The pipeline for FY22 continues to look healthy.

 

Heron Foods opened 2 gross new stores in Q3, offset by 3 closures, and now has
298 stores.  A total of 8 gross new stores are expected in Q4, resulting in
17 gross new stores for the financial year as a whole.

 

In France, the local team continue to make pleasing progress despite
disruption caused by the November 2020 lockdown restrictions.  A further 6
stores were re-branded as B&M during Q3, taking the number of stores under
the B&M banner to 44 out of a total portfolio of 104 stores in France.
By the end of FY21, 57 stores are now expected to be trading as B&M.

 

Conference Call

 

There will be a conference call for investors and analysts to discuss this
Trading Update on Thursday 7 January 2021 at 8:30am (UK).

 

Dial-in details are:

 

UK: +44 3306 061 118

 

US: +1 646 585 9191

 

Room number: 596070

 

Participant PIN: 2969

 

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

 

1.     The figures presented in this announcement are for the 13 week
period ended 26 December 2020 for the continuing operations of the Group
following the sale of Jawoll in FY20.  The figures presented for the 13 week
period ended 28 December 2019 have been restated to exclude Jawoll in order to
provide a comparable basis with those for the continuing operations as at 26
December 2020.

 

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

 

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

 

4.     Like-for-like revenues relate to the B&M 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 the previous period. This 14 month
approach has been taken as it excludes the two month halo period which new
stores experience following opening.

 

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

 

6.    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.

 

7.     B&M revenues include £16.8m of wholesale revenues in Q3 FY21
(Q3 FY20: £9.4m) and £37.2m year to date (YTD Q3 FY20: £21.0m).

 

 

 

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 673 stores in
the UK operating under the "B&M" brand, 298 stores under the "Heron Foods"
and "B&M Express" brands, and 104 stores in France operating under both
the "Babou" and "B&M" brands as at 26 December 2020. 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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