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B&M: Strong Golden Quarter Sales Growth

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B&M European Value Retail S.A., the UK's leading variety goods value retailer, today provides a trading update for the third quarter of its current financial year, relating to the 13 week period from 27 September 2020 to 26 December 2020.  

Highlights 

  • Group revenue growth in the quarter of +22.5% on a constant currency basis (Q3 FY20: +9.9%) 

  • B&M UK stores revenue growth of +26.6%, including like-for-like growth of +21.1% in the quarter (Q3 FY20: +0.3%) 

  • 18 gross new B&M UK stores opened in Q3, 16 net of closures, helping to create over 500 new jobs 

  • Heron Foods, the value convenience store chain, delivered another quarter of solid LFL sales growth

  • Babou and B&M France revenues in Q3 decreased by 1.4%, reflecting the 4 week lockdown restrictions that ended on 28 November 2020.  Outside of the lockdown period, sales performance was strong

  • A further special dividend of 20.0p per share (equating to approximately £200m in total) in line with our capital allocation framework.  The special dividend will be paid on 29 January 2021 to shareholders on the register at 15 January 2021. The ex-dividend date will be 14 January 2021

  • Previous guidance for FY21 Group adjusted EBITDA (on a pre-IFRS16 basis), issued on 3 December 2020, narrowed to be within the range of £540m to £570m, stated after the voluntary payment of business rates in FY21 amounting to approximately £80m

Simon Arora, Chief Executive, said,
"Our trading performance is testament to the hard work and commitment of all our colleagues, to whom I express my sincere thanks. The safety and wellbeing of our customers and colleagues has remained our priority during these unprecedented times, whilst we have worked hard to provide customers with the everyday essentials they need. We are awarding some 30,000 store and distribution colleagues an extra week's wages in recognition of their considerable efforts.  

Notwithstanding our status as an essential retailer, with lockdown restrictions in the UK having tightened there remain uncertainties ahead.  With our combination of exceptional value and convenient Out of Town locations, we are confident that our business model will prove highly relevant to the needs of customers in 2021."                                                                   

Revenue 

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Strategy

At the end of Q3 FY21, there were a total of 1,075 stores across the Group.

The B&M UK business now has 673 stores, having opened 18 gross new stores in Q3, offset by 2 closures.  The business remains on track to open a further 18 stores in Q4 and so 45 gross new stores this financial year, offset by 10 closures.  The pipeline for FY22 continues to look healthy.  

Heron Foods opened 2 gross new stores in Q3, offset by 3 closures, and now has 298 stores.  A total of 8 gross new stores are expected in Q4, resulting in 17 gross new stores for the financial year as a whole.

In France, the local team continue to make pleasing progress despite disruption caused by the November 2020 lockdown restrictions.  A further 6 stores were re-branded as B&M during Q3, taking the number of stores under the B&M banner to 44 out of a total portfolio of 104 stores in France.  By the end of FY21, 57 stores are now expected to be trading as B&M.

Source : B&M European Value S.A.

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07 January 2021

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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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