TIDMBME
RNS Number : 7700K
B&M European Value Retail S.A.
12 July 2017
12 July 2017
B&M European Value Retail S.A.
Trading Update
Continued strong, profitable growth
B&M European Value Retail S.A. ("the Group"), the UK's
leading multi-price value retailer, today provides a trading update
for the first quarter of its current financial year, relating to
the period for the UK from 26 March 2017 to 24 June 2017 and for
Germany from 1 April 2017 to 30 June 2017.
Highlights
-- Further strong growth during the quarter despite challenging
trading conditions and economic uncertainty generally
-- Group revenue growth in the quarter of 18.3%, including
excellent UK like-for-like growth of 7.3%, buoyed by strong grocery
sales
-- 9 new UK stores opened in the quarter and 4 in Germany from
the strong pipeline of new stores planned for the current year
-- The second quarter has started well and while it's still
early in the financial year, we are on course to achieve market
consensus profit expectations for the full year
Simon Arora, Chief Executive, said:
"This quarter's like-for like growth represents B&M's
strongest First Quarter for 3 years. It's driven by customers,
wherever they live throughout the regions, becoming ever more
receptive to the outstanding value delivered by B&M's unique
business model in relation to the things they buy regularly for
their homes and families. In these uncertain times, and with
inflation returning to the UK market, more and more shoppers are
actively seeking out value in our stores and that means our
business is strongly positioned to do well and continue its rapid
growth."
Revenue
Q1 Q1
2017/18 2016/17
----------------------- ------------ ------------
Total Group Sales
Revenues GBP656.3m GBP554.8m
B&M GBP598.4m GBP508.1m
Jawoll GBP57.9m GBP46.7m
----------------------- ------------ ------------
Total Group Sales
Growth +18.3% +21.5%
(actual rates)
B&M +17.8% +21.3%
Jawoll +23.9% +23.5%
----------------------- ------------ ------------
Total Group Sales
Growth
(constant currency) +17.2% +20.6%
----------------------- ------------ ------------
UK Like-for-Like
Sales Growth(1) + 7.3% 0.0%
----------------------- ------------ ------------
(1) Like-for-like revenues includes each store's revenue for
that part of the current period that falls at least 14 months after
it opened; and it is 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 17.2% on a
constant currency basis. On an actual currency basis, total sales
revenue increased by 18.3% (2016: 21.5%) to GBP656.3m (2016:
GBP554.8m).
UK sales revenue for the 13-week period increased by 17.8% to
GBP598.4m (2016: GBP508.1m), with like-for-like sales growth of
7.3% in the quarter although the UK business benefitted from the
timing of Easter trading which fell in the quarter this year, and
added approximately 1.0% to the headline like-for-like total.
Strategy
At the end of the quarter the Group's UK business had 543 stores
trading, having opened 6 net new stores over the last 13 weeks, in
the context of its upwardly revised UK store target of at least 950
stores. This financial year the UK business expects to open between
40 and 50 new stores with a greater proportion of these opening
during the second half of the period because of the number of
new-build stores in the programme this year. We also have a healthy
pipeline of new stores for the following financial year.
Our German business started the year with 75 trading stores, and
it's on course to reach 90 stores by the financial year end.
The quarter had an exceptionally strong start in UK
like-for-like sales due to favourable seasonal weather and the
timing of Easter compared to last year. Although as expected,
growth did moderate towards the end of the quarter as the Easter
timing effect waned, B&M maintained a very pleasing trading
momentum throughout the period. This performance was helped by
excellent sales in seasonal categories, particularly garden and
outdoor living, and by strong grocery sales.
Although it's early yet in the FY18 financial year, we are
nevertheless confident of meeting full year market consensus profit
expectations.
Conference Call
A conference call to discuss the Trading Update will be held on
Wednesday 12 July 2017 at 8:00 am (UK).
Dial-in details are:
UK & International: 08003589473
US: +18558570686
Participant Pin Code: 71088549#
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
Tom Eckersley
Robbie Hynes
bmstores-maitland@maitland.co.uk
Notes to editors
B&M European Value Retail S.A. is a variety retailer with
543 stores in the UK operating under the "B&M" brand and 79
stores in Germany primarily operating under the "Jawoll" brand as
at 24 June 2017. 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 company news service from the London Stock Exchange
END
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