TIDMBME
RNS Number : 6633B
B&M European Value Retail S.A.
12 January 2018
12 January 2018
B&M European Value Retail S.A.
Trading Update
A Strong Third Quarter with Record Christmas Trading
B&M European Value Retail S.A. ("the Group"), the UK's
leading general merchandise value retailer, today provides a
trading update for the third quarter of its current financial year,
relating to the 13 week period from 24 September 2017 to 23
December 2017(1).
Highlights
-- Group sales revenue growth in the quarter of 22.7 % at
constant currency, including a 3.9% increase in B&M UK
like-for-like revenues
-- Continued strong sales and operational performance through
the peak trading period
-- Management is confident that the Group will meet market
expectations for EBITDA for the current financial year
Revenue
Q3 Q3 YTD at YTD at
Q3 period Q3 period
end end
2017/18 2016/17 2017/18 2016/17
-------------------------- ------------ ------------ -------------- --------------
Total Group GBP969.8m GBP789.1m GBP2,316.2m GBP1,895.0m
Revenues
-------------------------- ------------ ------------ -------------- --------------
B&M GBP837.3m GBP741.4m GBP2,029.3m GBP1,758.4m
-------------------------- ------------ ------------ -------------- --------------
Heron GBP79.8m - GBP127.4m -
-------------------------- ------------ ------------ -------------- --------------
Jawoll GBP52.7m GBP47.7m GBP159.5m GBP136.6m
-------------------------- ------------ ------------ -------------- --------------
Total Group
Revenue Growth
(constant currency)(2) +22.7% +20.5% +21.7% +18.9%
-------------------------- ------------ ------------ -------------- --------------
UK Like-for-Like
Revenue Growth(3) +3.9% +7.2% +6.0% +3.1%
-------------------------- ------------ ------------ -------------- --------------
(1) The 13 week period for Heron Foods ended 30 December 2017
and for Jawoll 31 December 2017.
(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) 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 taken as it excludes the two month halo
period which new stores experience following opening.
Group sales revenue for the quarter increased by 22.7% on a
constant currency basis. On an actual currency basis, total sales
revenue increased by 22.9% (2016: 21.8%) to GBP969.8m (2016:
GBP789.1m).
UK sales revenue for the B&M store estate in the 13 week
period increased by 12.9% to GBP837.3m (2016: GBP741.4m) with
like-for-like sales up by +3.9% in the quarter. This performance
reflects the continuation of our successful new store opening
programme, as well as continued strong like-for-like sales growth
despite the demanding prior year Q3 comparative (2016/17:
+7.2%).
The strong like-for-like performance in the quarter reflects the
continued robust performance of our grocery and FMCG ranges,
further operational improvements to store standards for customers
and the recognition of our value offer by consumers generally.
The Heron store estate contributed GBP79.8m of revenues in the
quarter, including strong positive like-for-like revenue growth
with the business benefitting from selective extension to product
ranges whilst retaining its limited assortment SKU discipline.
Jawoll's sales revenue increased by 8.2% on a Euro basis, which
equates to an increase of 10.4% in Sterling to GBP52.7m in the
quarter versus the same period in the financial year 2016/17. This
reflected a stronger trading performance than in the first half of
the financial year, with the Christmas range, sourced through the
Group's far-eastern supply chain, performing particularly well.
Strategy
At the end of the quarter the UK business of the Group was
trading from 569 B&M stores, having opened 19 stores in the
last 13 weeks and a net 32 in total during the financial year to
date, and, from 263 Heron stores, with 4 new store openings in the
quarter.
In Germany Jawoll was trading from 84 stores following 2
openings in the quarter.
Outlook
Management is confident that the Group will meet market
expectations for EBITDA in the financial year to March 2018.
Simon Arora, Chief Executive, said,
"B&M continues to go from strength to strength. Despite the
demanding comparatives from the very strong Christmas in 2016, our
buying, supply chain and retail teams achieved another outstanding
performance this year by doing what we do best, which is delivering
great value for customers week-in, week-out. With Heron also
performing well and Jawoll having a solid quarter, I'm delighted
with our progress and on behalf of the Board I would like to thank
all of our colleagues for their hard work and commitment."
Conference Call
A conference call to discuss the Trading Update will be held on
Friday 12 January 2018 at 9:00 am (UK).
Dial-in details are:
UK & International: +44 (0) 3333 000 804
US: +1 631 913 1422
Participant Pin Code: 27228460#
Enquiries
B&M European Value Retail S.A.
For further information please contact +44 (0) 151 728 5400 ext
5766
Simon Arora, Chief Executive
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
Daniel Yea
bmstores-maitland@maitland.co.uk
Notes to editors
B&M European Value Retail S.A. is a variety retailer with
569 stores in the UK operating under the "B&M" brand and 263
stores under the "Heron Foods" brand, and 84 stores in Germany
primarily operating under the "Jawoll" brand as at 23 December
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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