TIDMBME
RNS Number : 4853G
B&M European Value Retail S.A.
24 July 2019
24 July 2019
B&M European Value Retail S.A.
Trading Update
Solid 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 31 March 2019 to 29 June 2019.
Highlights
-- Solid 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 21.4%, with B&M UK
revenue growth of 13.8% including like-for-like growth of +3.9%
-- 12 new B&M UK fascia stores(1) opened in the quarter and
one relocated. On track for 45 net new stores in the year as a
whole
-- Solid like-for-like sales growth and 6 new stores opened in
the quarter by our value convenience store chain, Heron Foods(1) ,
which continues to trade well on top of good performance in the
prior year
-- Jawoll's revenue increased by 1.9% to GBP63.1m
-- Revenue for the non-comparable quarter period in the French
business Babou was GBP72.6m
Simon Arora, Chief Executive, said:
"The Group has made a solid start and we are on track with our
plans for the year as a whole, with a strong performance in the
B&M UK business and continued implementation of our planned
change programmes in Germany and France, with a continued focus on
resolving the warehousing and logistics challenges in Jawoll.
B&M had its third consecutive record Easter trading period
with sales of seasonal products and Homewares performing
particularly well and Heron Foods has traded solidly too. The
transitional changes to the product offers in Jawoll and Babou are
now taking shape, as we apply the B&M model to those
businesses. We look forward to the remainder of the year with
confidence."
Revenue
Q1 Q1
2019/20 2018/19
B&M(2) GBP738.9m GBP649.2m
------------ ------------
Heron Foods GBP93.1m GBP86.1m
------------ ------------
Jawoll GBP63.1m GBP61.9m
------------ ------------
Babou GBP72.6m -
------------ ------------
Total Group Revenues GBP967.7m GBP797.2m
------------ ------------
Total Group Revenue Growth
(constant currency)(3) +21.4% +21.4%
------------ ------------
UK Like-for-Like Revenue
Growth(4) +3.9% +1.6%
------------ ------------
(1) References in this announcement to the B&M business,
includes 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, includes both the Heron Foods fascia and
B&M Express fascia convenience stores in the UK.
(2) B&M's revenue includes GBP5.6m of wholesale revenue in
the quarter (2018: GBP0.9m)
(3) Constant currency comparison involves restating the prior
year Euro revenues using the same exchange rate as used to
translate the current year Euro revenues.
(4) 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 21.4% (2018: 21.3%) to GBP967.7m (2018:
GBP797.2m).
B&M UK sales revenue for the 13 week period increased by
13.8% to GBP738.9m (2018: GBP649.2m), with like-for-like sales
growth of +3.9% in the quarter. The performance reflects our new
store opening programme and continued like-for-like sales
growth.
Our convenience store chain, Heron Foods, increased by 8.1% to
GBP93.1m (2018: GBP86.1m) of revenue in the quarter including a
solid like-for-like sales growth.
Jawoll sales revenue in our German business increased by 1.9% to
GBP63.1m (2018: GBP61.9m) compared with the prior year period.
There was a small negative like-for-like performance with the
business having had a particularly strong like-for-like performance
in April 2018. In recent weeks trading has turned positive,
benefiting from the recent hot weather.
Warehousing and logistics costs at Jawoll remain challenging,
but we expect they will begin to moderate by the end of the first
half of the current financial year.
Our French business, Babou, generated GBP72.6m of revenue in the
quarter, despite the planned declining sales performance in
Clothing and also the on-going clearance activity ahead of the
introduction of the B&M supply chain sourced products.
Around 40% of the new product ranges sourced from the B&M
supply chain in China have now been launched by Babou, with the
remaining lines due to arrive over the second quarter, allowing
Babou to reduce its reliance on Clothing.
Strategy
At the end of the quarter the B&M UK business had 632
trading stores, having opened 13 gross new stores (12 net of
relocations) and with Heron Foods now trading from 287 stores,
having opened 6 stores in the quarter.
In this financial year in the B&M UK business we expect to
open 50 gross new stores, being at least 45 net. We also expect to
open between 15 and 20 Heron Foods net new stores in the financial
year. The pipeline of new stores of the Group for the following
financial year also looks healthy.
Outlook
We have had a solid start to the financial year, and we remain
confident about the Group's outlook and continued profit growth as
the year progresses.
Conference Call
A conference call to discuss the Trading Update will be held on
Wednesday 24 July 2019 at 8:30 am (UK).
Dial-in details are:
UK & International: +44 3333 000 804
US: +1 631 913 1422
Participant Pin Code: 32406095#
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
632 stores in the UK operating under the "B&M" brand, 287
stores under the "Heron Foods" and "B&M Express" brands, 95
stores in Germany primarily operating under the "Jawoll" brand, and
96 stores in France operating under the "Babou" brand as at 29 June
2019. 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTEAKXDASKNEFF
(END) Dow Jones Newswires
July 24, 2019 02:00 ET (06:00 GMT)
B&m European Value Retail (LSE:BME)
Historical Stock Chart
From Apr 2024 to May 2024
B&m European Value Retail (LSE:BME)
Historical Stock Chart
From May 2023 to May 2024