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B&M Reports Strong First-Half Like-For-Like Growth

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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 half of its current financial year, relating to the period from 29 March to 26 September 2020.

Highlights: 

● Strong first half revenue growth and profit uplift driven by elevated average spend per visit 

● B&M's value-led, variety goods model and its convenient, easily-accessible, out-of-town locations continue to prove attractive to customers 

● Group revenue growth in the first half of 25.3%, with B&M UK stores generating revenue growth of 29.5% including like-for-like growth of 23.0% 

● Trading momentum at B&M UK stores maintained in Q2, with 19.1% like-for-like growth in the quarter and an exit rate at a similar level 

● First half Group Adjusted EBITDA1 (pre-IFRS16) expected to be above the previously guided range (£250m to £270m announced on 28 July) and now estimated to be approximately £285m (before currency adjustments) 

● 9 new B&M UK fascia stores opened by the half year end, offset by 8 closures, the latter comprising mostly older, smaller stores 

● Guidance upgraded on new stores this financial year as a result of pick up in leasing activity; now expected in the range of 40 to 45 B&M UK gross openings, most of which scheduled to open in the fourth quarter 

● Positive like-for-like sales growth and 6 net new stores opened in the first half by the Group's value convenience store chain, Heron Foods 

● Positive like-for-like sales growth at Babou in France since re-opening on 11 May 2020, with total H1 revenue of €156.8m, and a small positive EBITDA outturn for the half year despite the closure due to lockdown over the first 6 weeks. 37 stores were trading under the B&M brand at the end of H1 

Simon Arora, Chief Executive, said: 

"Our Group has performed well in the first half. Our business model is proving well-attuned to the evolving needs of customers, given our combination of everyday value across a broad range of product categories being sold at convenient out-of-town locations. 

Our people have risen to the many challenges posed by the COVID-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned. I thank them all for their commitment, hard work and resilience." 

B&M's Interim Results will be released on 12 November 2020.

Source : B&M Retail

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29 September 2020

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