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B&M Reports Good H1 Performance and 'Solid' Start to H2

B&M Bargains and Garden Centre 725 x 500

B&M European Value Retail S.A. (“the Group”), the UK’s leading variety goods value retailer, today announces its interim results for the 26 weeks to 29 September 2018.

Excerpts from the publication follow and you can download the trading update here.

The B&M corporate half-year results presentation is also available to download from our articles page.

HIGHLIGHTS
- Group revenues increased by +16.1% to £1,563.0m, +16.0% at constant currency

- B&M UK revenues were up +7.1%, which includes like-for-like revenues of +0.9% on an underlying basis excluding the non-comparable Easter trading week which fell in week 53 of FY18.

- Like-for-like revenues were flat if no adjustment is made for the non-comparable Easter trading week

- At the start of Q3 like-for-like sales growth so far in B&M fascia stores in the UK has been
similar to H1, and the business is well placed for the “golden quarter” trading

- Group adjusted EBITDA increased by 13.5% to £131.8m (FY18: £116.1m) and the B&M UK adjusted EBITDA increased by +12.1%

- Profit before tax increased by 32.5% to £115.0m (FY18: £86.8m)

- Earnings per share 9.3p, an increase of 36.8% (FY18: 6.8p). Adjusted Diluted earnings per share5 8.0p, up 14.3% (FY18: 7.0p)

- Cash flow from operations £67.0m (FY18: £44.2m), reflecting EBITDA growth and working capital discipline

- Interim dividend increased by 12.5% to 2.7p per share (FY18: 2.4p per share) to be paid on 21 December 2018

- 22 gross new B&M UK store openings of which 5 are relocations (net 15 after 2 closures) and on track to open at least 58 gross new B&M stores this financial year

- German business, Jawoll, opened 2 new stores in the period, and on track to open 10 new stores this financial year

- Jawoll’s revenue growth was +4.1%, although margin was impacted as expected by clearance activity on old stock lines as Jawoll introduces more B&M sourced products

- Heron Foods has continued to trade well and opened 9 gross new stores, net 4 and on track to open at least 20 gross new stores this financial year

- Babou, a value retailer in France, acquired in October 2018 with 95 stores, providing a platform for future growth in a large and attractive market

Simon Arora, Chief Executive, said,
“B&M has delivered a good first half performance. The core B&M fascia stores made good progress and we have made a solid start in the second half of the financial year. Heron Foods has grown strongly in the UK, and in Jawoll the new management team is now utilising the B&M supply chain, with clear early signs that customers are responding positively to the new products.

I’m delighted that having completed our recent purchase of Babou in France, we are now positioned to expand B&M’s disruptive, value-led model in Europe’s three largest consumer markets.  With the core B&M UK business having had a record half year performance, we are well placed to prosper in a difficult and uncertain retail environment.”

Source : Insight DIY Team and B&M Retail

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13 November 2018

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