6 January 2022
B&M European Value Retail S.A.
Q3 FY22 Trading Update
Strong Christmas performance drives full-year profit upgrade
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 (“FY22”), relating to the 13 week period from 26 September 2021 to 25 December 2021.
Highlights
- Group revenue growth in Q3 FY22of 0.1 % year-on-year on a constant currency basis 1
- Total B&M UK fascia2revenue in Q3 down (2.5)% year-on-year, with one-year like-for-like3 (“LFL”) revenue down (6.2)% and up 14.0% on a two-year basis versus pre-pandemic levels of Q3 FY20
- Strong performance across categories, with excellent sell-through of Seasonal ranges supporting gross margin in the quarter
- 9gross new B&M UK fascia 2 stores opened in Q3, with 2 closures. Expect to open 13 further stores before FY22 year-end
- Performance in Heron Foods2continues to improve, with positive two-year LFL revenue growth in Q3 FY22
- Sustained momentum in B&M France, with Q3 revenue up 30.0% year-on-year and all but one of the 107 stores now under the B&M fascia
- Will reward over 24,000 colleagues for their considerable efforts this year with a discretionary bonus payment of an extra week's wages in January
- FY22 Group adjusted EBITDA4(on a pre-IFRS16 basis) now expected to be in the range of £605m to £625m, ahead of the current analysts' consensus estimate of £578m5
Simon Arora, Chief Executive, said,
“The Group has delivered a very strong Golden Quarter, with our two-year like-for-like performance demonstrating strong retention of new customers. Our decision to take receipt of imported Christmas stock early in the season meant we were able to provide customers with great products at great prices. The consistency of performance in the core B&M UK business reflects the growing appeal of our stores as a destination visit for seasonal products, as well as the strength of our supply chain. I would like to thank all of our colleagues for helping to deliver our best-ever Christmas.
Although the pandemic continues to create challenges for retailers and consumers alike, our relentless focus on value-for-money remains undiminished . Despite ongoing supply chain disruption, inflationary pressures and uncertainty surrounding possible Covid-related restrictions, we remain confident in B&M's prospects for 2022. ”