REG - B&M European - FY25 Post Close Trading Statement

B&M European Value Retail SAAnnouncement

15/04/2025 07:02

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RNS Number : 9845E  B&M European Value Retail S.A.  15 April 2025

 

 

 

 

15 April 2025

FY25 Post Close Trading Statement

 

FY25 Group Revenues of £5.6bn and

Group Adjusted EBITDA is expected to be above the midpoint of guidance

 

B&M European Value Retail S.A. ("the Group"), the UK's leading variety
goods value retailer, today provides an update for the 52 week financial
reporting period to 29 March 2025 ("FY25").

 

Highlights

 

 Fascia Performance(1)  13 weeks vs. 13 weeks  52 weeks vs. 52 weeks  52 weeks vs. 53 weeks
                        Q4 FY25                FY25                   FY25
                        y-o-y%                 y-o-y%                 £m           y-o-y%
 B&M UK                 5.4%                   3.8%                   £4,483m      1.6%
 B&M France             9.1%                   7.8%                   £543m        5.6%
 Heron Foods            1.5%                   -0.6%                  £546m        -2.5%

See supplemetal information for further detail on our reporting calendar.

 ·           Group revenues for FY25 of £5.6bn increased by +3.7% (+4.0% constant
             currency(2)) on a 52 week basis with revenue growth from new store performance
             and positive like-for-like (LFL)(3) sales in France offsetting negative LFL
             performance in B&M UK and Heron Foods

 ·           B&M UK Q4 LFL was (1.8)% in the 12 week period to 22 March 2025. B&M
             France Q4 LFL was +3.2% for the same 12 week period. B&M UK Q4 13 week
             LFL(3) was (2.4)%. A 12 week period is shown as it removes the distorting
             effect from the Easter weekend falling in the final week of FY24

 ·           B&M UK FY25 LFL(3) was (3.1)% and B&M France FY25 LFL(3) was +2.6%

 ·           B&M UK general merchandise sales values and unit volumes in Q4 increased
             on both a like-for-like and total basis; Garden, Toys, Paint and Stationery
             categories have underpinned performance. FMCG delivered a negative LFL while
             remaining positive in total sales value and volume growth.  Actions are
             underway to improve FMCG LFL performance.

 ·           Opened 45 B&M UK gross new stores in line with previous guidance. These
             new stores are performing in line with our expectations and are generating
             strong returns. Pipeline for next year continues to be robust with 45 gross
             new store openings expected

 ·           Continued progress being made in France with 11 gross new stores and Heron
             with 14 gross new stores opened during the year

 ·           Gross margin was robust in B&M UK, helped by total volume growth and
             relatively stronger trading in general merchandise categories

 ·           B&M UK operating costs managed with discipline, increasing by c.6%.  The
             c.5% increase in store numbers, greater volumes and higher wage rates have
             been partly mitigated by productivity gains
 ·           FY25 Group adjusted EBITDA (pre-IFRS 16) is expected to be above the midpoint
             of our £605m-£625m guidance range

 ·           Leverage ratio(4) expected to be close to the mid-point of our target 1.0-1.5x
             leverage range after payment of a £151m special dividend and the payment of
             £149m of ordinary dividends(5) during the year

 ·           FY25 return on capital(6) expected to be c.30%

 ·           Redomicile process, which will simplify administrative processes and enable
             greater flexibility in returning capital to shareholders, including through
             share buybacks, is progressing to plan. Process expected to complete within
             the calendar year, subject to the necessary regulatory and legal clearances

 ·           The Board is making progress on CEO succession and will make an announcement
             in the coming weeks

 

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.     One-year LFL revenues relate to the B&M UK estate only (excluding
wholesale revenues) and are based on either a 52 weeks vs. 52 weeks or 13
weeks vs. 13 weeks comparison periods. They 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 FY24. This 14-month
approach has been adopted as it excludes the two-month halo period which new
stores experience following opening.

4.     Defined as net debt (pre-IFRS 16, excluding capitalised operating
leases) / Group adjusted EBITDA (pre-IFRS16).

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

6.     Return on capital is a pre-tax measure calculated using expected FY25
Group adjusted operating profit divided by FY25 closing balances for PPE,
right-of-use assets, software plus net working capital

 

Supplemental Information

 

We report sales on a 13 week and 52 week retail calendar - which uses 364 days
in a year. This reporting year (FY25) was a 52 week period but in FY24, a 53rd
week was added to our reporting calendar. This additional week in the prior
period, which was also Easter week, affects the comparability of performance
for both Q4 FY25 and FY25 statutory revenues and therefore that week is
excluded from the 13 week and 52 week FY25 revenue growth calculations.

                      FY25 quarterly statutory reporting periods (13 weeks unless indicated)

 (Period end dates)
                      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
                      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.  The 13 week period and 52 week period used
for revenue growth calculations both end on 23/03/2024.

 

 

Preliminary Results Announcement - Wednesday 4(th) June 2025 at 07:00 BST

 

Enquiries

 

B&M European Value Retail S.A.

For further information please contact: +44 (0) 151 728 5400 Ext. 6363

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 777 stores in
the UK operating under the "B&M" brand, 343 stores under the "Heron Foods"
and "B&M Express" brands, and 135 stores in France also operating under
the "B&M" brand as at 29 March 2025.

 

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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