B&M Reports 3.7% Revenue Increase In Third Quarter

• Disciplined execution: volumes growing and well set up for the Golden Quarter

B&M European Value Retail S.A. ("the Group"), the UK's leading variety goods value retailer, today announces its interim results for the 26 weeks to 28 September 2024.

Highlights 

• Group revenues increased by 3.7% to £2,644m (+3.9% constant currency3) driven by volume growth. B&M UK total sales growth improved across the half with 6.0% in Q2 up from 1.5% in Q1, supported by improving like-for-likes4 of (1.9)% in Q2 up from (5.1)% in Q1
  
  
• Opened 39 gross new stores across the Group in H1 (30 in B&M UK, 5 in France and 4 in Heron)
  
  
• Group adjusted EBITDA2 (pre-IFRS 16) of £274m up 2.0% (H1 FY24: £269m), with a margin of 10.4% (H1 FY24: 10.5%)
  
  
• Group adjusted operating profit2 of £258m (H1 FY24: £263m), with statutory operating profit of £235m (H1 FY24: £275m) and statutory profit before tax of £169m (H1 FY24: £222m)
  
  
• Post-tax free cash flow5 of £73m (H1 FY24: £143m), with a clean inventory position exiting Spring/Summer and early Autumn/Winter shipments to derisk Golden Quarter execution
  
  
• To futureproof volume growth, a new UK imports centre will be opened in FY26, optimising existing distribution centre network capacity levels; 2024 physical container volumes are +40% vs. 2019, reflecting the step change in market share achieved
  
  
• Net debt7 to adjusted EBITDA2 (pre-IFRS 16) leverage ratio of 1.2x (H1 FY24: 1.1x). Net debt including leases was 2.5x (H1 FY24: 2.4x)
  
  
• Interim dividend6 of 5.3p per Ordinary Share will be paid on 13 December 2024 (H1 FY24: 5.1p)
  
  
• FY25 Group adjusted EBITDA2 (pre-IFRS 16) expected to be in the range of £620m-£660m (FY24 52/53 weeks: £616m/£629m), with growing volume momentum, particularly in general merchandise
  
  
• Smooth transition of executive team; succession plan in place for the retirement of the Group Trading Director in March 2025
  
  
• Formal review of the parent company's corporate domicile underway to simplify administrative processes and enable greater flexibility in returning capital to shareholders, including through share buybacks 

Alex Russo, Chief Executive, said:

In the first six months, we delivered Group adjusted EBITDA² (pre-IFRS 16) up 2.0% to £274m driven by total sales growth of 3.7%. This is a good performance as we annualise a record prior year of earnings growth with strong first half comparatives. We continue to execute with Everyday Low Price ("EDLP") integrity for all our customers, with industry leading availability and excellence in operational standards. Our model is underpinned by a disciplined and low-cost approach across all three of our businesses, focusing on simple, sustainable growth, delivered through the hard work of our teams.

Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase. We have made significant progress over the last three months in general merchandise, particularly in Home, with the range strengthened and prices lowered further to drive volume market share.

Our new store opening programme is on track and performing exceptionally well. To futureproof this volume growth, I am pleased to announce that next year we will open a new imports centre in Ellesmere Port. This facility will manage inbound container flow and optimise the capacity of our five existing B&M UK distribution centres which are handling ever-growing volumes. This is the right productivity step to support both our short and long-term growth plans, including our target of not less than 1,200 B&M UK stores. We are currently extending our French distribution centre demonstrating the growth plans in place for France.

Our long-term ambition for the Group remains unchanged, in supporting customers with exceptional value. As we trade through the Golden Quarter, we are encouraged by recent volume momentum and remain focussed on delivering profitable, cash-generating growth for all of our shareholders.

Outlook and guidance

The business is well positioned for the Golden Quarter with its continued focus on price, product and standards. While the consumer environment remains uncertain, the Group has demonstrated it executes well in all trading environments.

With growing volume momentum, and with broadening strength in general merchandise, we are confident in our outlook for the second half and the full year. We anticipate full-year Group adjusted EBITDA² (pre-IFRS 16) to be in the range of £620m-£660m (FY24 52/53 weeks: £616m/£629m). 

Financial results (unaudited)

Source : B&M 

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