REG - B&M European - Trading Update

B&M European Value Retail SAAnnouncement

29/09/2020 07:01

RNS Number : 3551A
  
B&M European Value Retail S.A.
  
29 September 2020
  
 

                                                                                                             
 
 
29 September 2020 
 
B&M European Value Retail S.A.                                          
 
First Half Trading Update                                 
 
 Maintained Strong Q2 Trading Momentum 
 
 
B&M European Value Retail S.A. ("the Group"), the UK's leading general merchandise value retailer, today provides a trading update for the first half of its current financial year, relating to the period from 29 March to 26 September 2020.
 
Highlights:
 
● Strong first half revenue growth and profit uplift driven by elevated average spend per visit 
 
● B&M's value-led, variety goods model and its convenient, easily-accessible, out-of-town locations continue to prove attractive to customers
 
● Group revenue growth in the first half of 25.3%, with B&M UK stores generating revenue growth of 29.5% including like-for-like growth of 23.0%
 
● Trading momentum at B&M UK stores maintained in Q2, with 19.1% like-for-like growth in the quarter and an exit rate at a similar level
 
● First half Group Adjusted EBITDA1 (pre-IFRS16) expected to be above the previously guided range (£250m to £270m announced on 28 July) and now estimated to be approximately £285m (before currency adjustments)
 
● 9 new B&M UK fascia stores opened by the half year end, offset by 8 closures, the latter comprising mostly older, smaller stores
 
● Guidance upgraded on new stores this financial year as a result of pick up in leasing activity; now expected in the range of 40 to 45 B&M UK gross openings, most of which scheduled to open in the fourth quarter 
 
● Positive like-for-like sales growth and 6 net new stores opened in the first half by the Group's value convenience store chain, Heron Foods
 
● Positive like-for-like sales growth at Babou in France since re-opening on 11 May 2020, with total H1 revenue of €156.8m, and a small positive EBITDA outturn for the half year despite the closure due to lockdown over the first 6 weeks. 37 stores were trading under the B&M brand at the end of H1
 
Simon Arora, Chief Executive, said:
 
"Our Group has performed well in the first half. Our business model is proving well-attuned to the evolving needs of customers, given our combination of everyday value across a broad range of product categories being sold at convenient out-of-town locations.
 
Our people have risen to the many challenges posed by the COVID-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned. I thank them all for their commitment, hard work and resilience."
 
B&M's Interim Results will be released on 12 November 2020.
 
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.
 
1. 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.
 
 
B&M European Value Retail S.A.
For further information please contact +44 (0) 151 728 5400 ext 5766
Simon Arora, Chief Executive 
Paul McDonald, Chief Financial Officer 
Steve Webb, Investor Relations Director
Investor.relations@bandmretail.com
 
Media
For media please contact +44 (0) 207 379 5151
Maitland, Daniel Yea
bmstores-maitland@maitland.co.uk

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