B&M UK Posts Total Revenue Growth In Q3; LFL Sales Declined

• Increased volume momentum driving profit and cash generation 
• £151m special dividend declared 

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 (“FY25”), relating to the 13 week period from 29 September 2024 to 28 December 2024. 

Highlights

• Group revenue growth YTD on a constant currency3 basis was 3.5% (3.3% as reported). Group Q3 constant currency3 revenue growth was 2.8% year-on-year (2.6% as reported)
  
  
• B&M UK Q3 total revenue growth of 2.8%, like-for-like4 (LFL) revenue growth of (2.8)% with positive LFL growth in December. January entry run-rate has continued a positive LFL trend, on the back of a strong customer response to our newly launched ranges  
  
  
• Both FMCG and general merchandise saw excellent seasonal range sell-through, with Seasonal Confectionery, Toys, Seasonal Christmas Home ranges all delivering positive volume growth and positive LFL4 performance in December 
  
  
• B&M UK gross margin and profit performance was strong in the quarter, with a clean inventory exit position. January seasonal transition is well on track and availability is very strong
  
  
• B&M France traded well in the quarter, with total revenue growth1 of 12.5% and LFL4 revenue growth of 3.8%
  
  
• On track to open approximately 73 gross new stores across the Group in FY25 (45 in B&M UK, 11 in B&M France and 17 in Heron Foods). FY26 opening programme is on track with 45 planned openings in B&M UK
  
  
• Our work to relocate the parent company’s domicile continues, with two possible destinations under review: Jersey and Ireland. We are commencing enquiries with regulators and relevant authorities to progress our consideration of location and timing. The company intends to retain its London listing in the event that any change is ultimately implemented
  
  
• The Group’s industry-leading return on capital5 (in excess of 30%) drives a strong cash generation every year. The Board is declaring a special dividend6 of 15.0p per Ordinary Share (equivalent to £151m) to be paid on 14 February 2025 to shareholders on the register at 17 January 2025. The ex-dividend date will be 16 January 2025. Further excess capital returns in the new financial year will be finalised once the redomicile process has been completed 

Alex Russo, Chief Executive, said, “Our performance across the Golden Quarter reflects disciplined operational execution across our businesses, driving volume and in turn profit growth. The business remains undistracted by the current economic headlines. Our operating model is well set up to give customers exceptional value when they need it most. Pricing, availability, store standards and a disciplined opening programme will underpin positive volume growth across our ranges. Our DC logistics network capacity upgrades are on-track in both the UK and France to support long-term growth.

With three quarters of the financial year now complete, we narrow our previously disclosed profit growth guidance range. FY25 Group adjusted EBITDA (pre-IFRS 16) is now expected to be in the range of £620m to £650m (FY24 52 weeks: £616m / FY24 53 weeks: £629m). This is equivalent to Group adjusted operating profit of between £590m to £620m.

Our strategy is clear - we are an everyday low-price discounter with a laser-focus in keeping excellence in retail standards and our costs the lowest. This allows us to drive volumes by offering our best-selling products at exceptional value to every customer. Through this volume growth, and with our leading return on capital business model, we continue to generate profit and cash returns for our shareholders.” 

1) B&M France Q3 and Q3 YTD year-on-year total revenue growth % are calculated in local currency. 
2) References in this announcement to the B&M business include the B&M fascia stores in the UK except for the ‘B&M Express’ fascia stores. References in this announcement to the Heron Foods business include both the Heron Foods fascia and B&M Express fascia convenience stores in the UK.
3) Constant currency comparison involves restating the prior year Euro revenues using the same exchange rate as that used to translate the current year Euro revenues.
4) One-year like-for-like revenues exclude 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 FY24. This 14month approach has been adopted as it excludes the 2-month halo period which new stores experience following opening.
5) Return on capital is a pre-tax measure calculated using the mid-point of the range for FY25 Group adjusted operating profit divided by brought forward PPE, right-of-use assets, software plus working capital. 
6) Dividends are stated as gross amounts before a deduction of Luxembourg withholding tax which is currently 15%. 

Source : B&M

Image : B&M 

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