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B&M Retail delivers another stunning set of results

B&M new store

B&M European Value Retail S.A. the UK’s leading multi-price value retailer, today announced its interim results for the 53 weeks to 31 March 2018.

Results Highlights

● Group revenues1 increased by 22.4% to £2,976.3m (2017: £2,430.7m), 22.0% at constant currency2 for the 52 week comparable period to the previous year.

● UK B&M store fascia Like-for-Like revenue4 growth of 4.7% for the year.

● Group profit before tax increased by 25.4% to £229.3m for the 53 week period (2017: £182.9m).

● UK B&M store fascia Adjusted EBITDA1&3 growth of 17.2% to £261.7m (2017: £223.2m), with a 29bps increase in margin to 10.2% of revenue.

● The 53rd week added some £53.5m and £3.2m to Group revenues and profit before tax respectively.

● Group Adjusted Profit Before Tax1&3 increased by 16.5% to £221.5m (2017: £190.2m), diluted earnings per share 18.6p (2017: £14.3p).

● Cash generated from operations of £242.0m for the 53 week period (2017: £210.9m), Year- end Net Debt of £535.3m and net debt to EBITDA of 1.92x, which equates to 1.72x excluding the capital expenditure incurred to date on the Southern distribution centre (2017: 1.71x).

● Recommended final dividend5 increased by 23.1% to 4.8p per share (FY17: 3.9p) to be paid on 6 August 2018, bringing the full year ordinary dividend to 7.2p per share, being an increase of 24.1%.

● 47 gross new B&M UK stores opened in the period (39 net) and at least a further 45 net new stores are planned for this financial year as we benefit from the availabilty of attractive new store opportunities.

● Heron Foods acquisition integrated and delivered excellent performance in the 8 months of ownership generating £11.7m Adjusted EBITDA1&3 and it is proving to be an effective platform for the introduction of frozen & chilled foods into B&M, which is now in 72 B&M stores.

● Learning the lessons in Germany with rapid pace of transition towards the B&M model under the new Jawoll management team. Jawoll Adjusted EBITDA1&3 reduced to £5.6m; targeting a return to EBITDA growth by Jawoll in the current financial year.

● Large new, 1m sq ft Southern distribution centre now under construction in Bedford and when commissioned by Spring 2020 it will support UK expansion needs for the foreseeable future.

● Pleasing start to Q1 trading across the Group, with 3.1% Like-for-Like in B&M fascia stores in the UK excluding the Easter week.

Download the B&M 2017-2018 Full Results Presentation here.

Simon Arora, Chief Executive, said,

“B&M has delivered another set of strong results by doing what we do best, which is providing great value week-in, week-out on the things customers buy regularly for their homes and families. None of our success could have been achieved without the hard work and dedication of the thousands of B&M colleagues across the Group and on behalf of the Board I would like to thank them for all their efforts.

Notes

The B&M model is highly relevant for the current difficult economic environment, with its strong position in the value and convenience areas of retailing where physical stores are winning. The business is well placed for continued profitable, long-term growth. In a retail sector beset by structural challenges B&M’s unique, disruptive model stands out as a success story.” 

1 Unless otherwise stated figures presented in this announcement are for the 52 weeks ended 24 March 2018, which is comparable with the previous year rather than the statutory reported 53 week period. See the table below in relation to the statutory 53 week basis figures.

2 Constant currency comparison involves restating the prior year Euro revenues using the same exchange rate as used to translate the current year Euro revenues.

3 The Directors consider adjusted 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. Further details can be found in note 3.

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 used as it excludes the two month halo period which new stores experience following opening.

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

6 Net capital expenditure includes the purchase of property, plant and equipment, intangible assets and proceeds of sale of any of those items.

Source: Insight DIY Team & B&M Retail Results Announcement

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30 May 2018

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Thank you for the excellent presentation that you gave at Woodbury Park on Thursday morning. It was very interesting and thought-provoking for our Retail members. The feedback has been excellent.

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Martin Elliott. Chief Executive - Home Hardware.
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