TIDMBME
RNS Number : 3714U
B&M European Value Retail S.A.
12 July 2018
12 July 2018
B&M European Value Retail S.A.
Trading Update
Continued Strong, Profitable Growth
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 quarter of its current financial year,
relating to the period from 1 April 2018 to 30 June 2018.
Highlights
-- Strong start to the new financial year as B&M's
disruptive value model continues to prove highly attractive to
customers
-- Group revenue growth in the quarter of 21.3%, with B&M UK
revenue growth of 8.3% including like-for-like growth of +1.6% and
+3.6% on an underlying basis, excluding the non-comparable Easter
week in the prior year
-- Four new B&M UK stores opened in the quarter (which
includes one relocation), reflecting the phasing of the new store
opening programme being weighted towards the second half of the
financial year. On track for 50 gross new stores in the year as a
whole
-- Four new stores opened in the quarter by our value
convenience store chain, Heron Foods, which continues to trade well
on top of good performance in the prior year
-- Encouraging progress at Jawoll with good revenue growth of
7.0% in the quarter driven by the Gardening category, with new
management driving a fast pace of change in the customer offer
ahead of the Autumn/Winter season
Simon Arora, Chief Executive, said:
"The business has performed strongly in the quarter despite
demanding comparables of +7% LFL's in the previous year and a
sluggish market environment. Our competitively priced ranges for
Garden and Outdoor Leisure have been very well received and they
are achieving great rates of sell-through. We have enjoyed record
sales in these seasonal product categories, which is a testament to
the appeal of our highly disruptive business model. I would like to
thank all our colleagues for their hard work and success in
delivering B&M's best ever Q1 early Summer Trading season."
Revenue
Q1 Q1
2018/19 2017/18
Total Group Revenues GBP796.3m GBP656.3m
------------ ------------
B&M GBP648.3m GBP598.4m
------------ ------------
Heron GBP86.1m -
------------ ------------
Jawoll GBP61.9m GBP57.9m
------------ ------------
Total Group Revenue Growth
(constant currency)(1) +21.4% +17.2%
------------ ------------
UK Like-for-Like Revenue
Growth(2) +1.6% + 7.3%
------------ ------------
(1) Constant currency comparison involves restating the prior
year Euro revenues using the same exchange rate as used to
translate the current year Euro revenues.
(2) Like-for-like revenues relate to the B&M estate only 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.
Group sales revenue for the quarter increased by 21.4% on a
constant currency basis. On an actual currency basis, total sales
revenue increased by 21.3% (2017: 18.3%) to GBP796.3m (2017:
GBP656.3m).
B&M UK sales revenue for the 13 week period increased by
8.3% to GBP648.3m (2017: GBP598.4m), with like-for-like sales
growth of +1.6% in the quarter. The performance reflects our new
store opening programme and continued like-for-like sales growth,
despite the strong comparable last year (2017: 7.3%) and Easter
falling in Week 53 of FY17/18.
Our convenience store chain, Heron Foods, contributed GBP86.1m
of revenue in the quarter including a strong like-for-like revenue
growth, with the improved ambient ranges performing well in
particular.
In Germany, trading in the quarter has been positive on a
like-for-like basis, with the Gardening and Plant ranges performing
well at the beginning of the Quarter. We are continuing to clear
older stock as planned ahead of introducing a greater mix of
product sourced from B&M's Far East supply chain for Autumn
2018.
Strategy
At the end of the quarter the Group's UK business had 846
trading stores, having opened 8 gross new stores (5 net of closures
and relocations), with the B&M estate now trading from 578
stores and the Heron format from 268 stores.
In this financial year in the B&M UK business we expect to
open at least 45 net new stores, with a greater proportion of those
opening in the second half of the year. We also expect to open
between 15 and 20 Heron Foods stores and 10 Jawoll stores in the
financial year. The pipeline of new stores of the Group for the
following financial year is also looking healthy.
Outlook
We have had a pleasing start to the financial year, and we
remain confident about the Group's outlook as the year
progresses.
Conference Call
A conference call to discuss the Trading Update will be held on
Thursday 12 July 2018 at 8:30 am (UK).
Dial-in details are:
UK & International: +44 3333 000 804
US: +1 855 85 70686
Participant Pin Code: 54118909#
Enquiries
B&M European Value Retail S.A.
For further information please contact +44 (0) 151 728 5400
Simon Arora, Chief Executive Officer
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
Notes to editors
B&M European Value Retail S.A. is a variety retailer with
578 stores in the UK operating under the "B&M" brand and 268
stores under the "Heron Foods" brand, and 87 stores in Germany
primarily operating under the "Jawoll" brand as at 30 June 2018. It
was admitted to the FTSE 250 index in June 2015.
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
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END
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