TIDMBME
RNS Number : 8322K
B&M European Value Retail S.A.
07 January 2021
7 January 2021
B&M European Value Retail S.A.
Q3 FY21 Trading Update
Strong Golden Quarter sales growth
B&M European Value Retail S.A. ("the Group"), the UK's
leading variety goods value retailer, today provides a trading
update for the third quarter ("Q3") of its current financial year
("FY21"), relating to the 13 week period from 27 September 2020 to
26 December 2020.
Highlights
-- Group revenue(1) growth in the quarter of + 22.5 % on a
constant currency basis(2) (Q3 FY20: +9.9%)
-- B&M UK stores(3) revenue growth of +26.6%, including
like-for-like(4) ("LFL") growth of +21.1% in the
quarter (Q3 FY20: +0.3%)
-- 18 gross new B&M UK stores(3) opened in Q3, 16 net of
closures , helping to create over 500 new jobs
-- Heron Foods(3) , 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(5) of 20.0p per share (equating to
approximately GBP200m 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(6) (on a
pre-IFRS16 basis), issued on 3 December 2020, narrowed to be within
the range of GBP540m to GBP570m, stated after the voluntary payment
of business rates in FY21 amounting to approximately GBP80m
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
Q3 Q3 YTD YTD
FY21 FY20(1) Q3 FY21 Q3 FY20(1)
Total Group revenues(1) GBP1,398.5m GBP1,138.0m GBP3,640.6m GBP2,926.6m
B&M(3, 7) GBP1,211.8m GBP957.4m GBP3,097.2m GBP2,413.8m
Heron(3) GBP102.9m GBP95.6m GBP319.1m GBP283.8m
Babou GBP83.7m GBP85.0m GBP224.3m GBP229.0m
-------------- -------------- -------------- --------------
Total Group revenue
growth (constant
currency)(2) +22.5% +9.9% +24.2% +17.5%
-------------- -------------- -------------- --------------
B&M UK like-for-like
revenue growth(4) +21.1% +0.3% +22.2% +2.3%
-------------- -------------- -------------- --------------
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.
Conference Call
There will be a conference call for investors and analysts to
discuss this Trading Update on Thursday 7 January 2021 at 8:30am
(UK).
Dial-in details are:
UK: +44 3306 061 118
US: +1 646 585 9191
Room number: 596070
Participant PIN: 2969
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
1. The figures presented in this announcement are for the 13
week period ended 26 December 2020 for the continuing operations of
the Group following the sale of Jawoll in FY20. The figures
presented for the 13 week period ended 28 December 2019 have been
restated to exclude Jawoll in order to provide a comparable basis
with those for the continuing operations as at 26 December
2020.
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. References to the B&M business include the B&M fascia
stores in the UK except for the 'B&M Express' fascia stores.
References to the Heron Foods business include both the Heron Foods
fascia and B&M Express fascia convenience stores in the UK.
4. Like-for-like revenues relate to the B&M estate only
(excluding wholesale revenues) 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.
5. Dividends are stated as gross amounts before deduction of
Luxembourg withholding tax which is currently 15%.
6. The Directors consider adjusted EBITDA 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. Adjusting items are the
effects of derivatives, one off refinancing fees, foreign exchange
on the translation of intercompany balances and the effects of
revaluing or unwinding balances related to the acquisition of
subsidiaries.
7. B&M revenues include GBP16.8m of wholesale revenues in Q3
FY21 (Q3 FY20: GBP9.4m) and GBP37.2m year to date (YTD Q3 FY20:
GBP21.0m).
Enquiries
B&M European Value Retail S.A.
For further information please contact +44 (0) 151 728 5400 ext
5763
Simon Arora, Chief Executive
Alex Russo, Chief Financial Officer
Jonny Armstrong, Head of Investor Relations
Investor.relations@bandmretail.com
Media
For media please contact +44 (0) 207 379 5151
Sam Cartwright, Maitland
bmstores-maitland@maitland.co.uk
Notes to editors
B&M European Value Retail S.A. is a variety retailer with
673 stores in the UK operating under the "B&M" brand, 298
stores under the "Heron Foods" and "B&M Express" brands, and
104 stores in France operating under both the "Babou" and "B&M"
brands as at 26 December 2020. It was admitted to the FTSE 100
index on 21 September 2020.
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 .
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END
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