Last checked at 14 Jan 2016 07:00
14 January 2016
B&M European Value Retail S.A.
Trading Update
Continued growth despite challenging trading conditions
B&M European Value Retail S.A. ("the Group"), the UK's leading multi-price value retailer, today provides a trading update for the third quarter of its current financial year, relating to the period from 27 September 2015 to 26 December 2015.
Highlights
● Continued growth despite challenging trading conditions
● The Group delivered resilient performance through peak trading period, with Group sales revenue in the quarter increased by 23.5% at constant currency
● We remain comfortable with market expectations for the full year
Revenue
13 weeks to 26 December 2015 | 13 weeks to 27 December 2014 | 39 weeks to 26 December 2015 | 39 weeks to 27 December 2014 | |
Total Group Revenues |
£647.8m |
£527.9m |
£1578.2m |
£1267.3m |
B&M |
£614.5m |
£493.8m |
£1476.2m |
£1174.7m |
Jawoll |
£33.3m |
£34.1m |
£102.0m |
£92.6m |
Total Group Sales Revenues at constant currency |
+23.5% |
- |
+25.4% |
- |
UK Like-for-Like Sales Growth |
-0.7% |
+4.5% |
+0.4% |
+4.7% |
Group sales revenue for the 13 weeks ending 26 December 2015 increased by 23.5% on a constant currency basis. On an actual currency basis, total sales revenue increased by 22.8% (2014: 28.8%) to £647.8 m (2014: £527.9m).
UK sales revenue for the 13 week period increased by 24.4% to £614.5m (2014: £493.8m) with like-for-like sales of -0.7% in the quarter. This performance reflects our successful store opening programme, as well as the combination of mild temperatures impacting the sales of cold weather products and the previously reported lower than normal service levels from our two new Distribution Centres. B&M enjoyed a strong Christmas trading period with positive LFL.
Jawoll saw an increase in its sales revenues in Euro of 7.8% in the quarter, although this translates to a decline of 2.1% to £33.3m on a sterling basis.
Strategy
At the end of the quarter the UK business of the Group was trading from a total of 487 stores, having opened 15 stores over the last 13 weeks and a net 62 in total during the year to date. In Germany Jawoll is now trading from 55 stores having opened three stores in the third quarter and we have been pleased with the performance of the new stores opened to date. In the next financial year we expect to step up the pace of expansion in Germany to around 10 stores.
Simon Arora, Chief Executive, said,
"I'm delighted to report a record Christmas season for B&M, once again demonstrating the popularity of our model, despite a challenging trading period for the whole retailing industry in the UK. At our Christmas peak, we served over four million customers in a single week and we continue to gain market share. The business has delivered a resilient performance through peak trading despite the operational challenges of commissioning two large new distribution centres so late in the year.
Our German business Jawoll has also performed well and we are taking our first steps towards a faster pace of expansion with our distribution centre extension progressing well, and with our trial stores trading in line with our expectations. The move up to 10 new stores planned for 2016/17 is a significant step in our long-term strategy for growth. Overall we are on track with our plans for the year as a whole and remain comfortable with market expectations for the full year.
I would like to thank the whole B&M team for their continued hard work and commitment. They have continued to look after our customers superbly whilst supporting the rapid growth of the business."
Conference Call
A conference call to discuss the Trading Update will be held on Thursday 14 January 2016 at 11:30 am (UK).
Dial-in details are:
UK & International: +44 (0) 203 1394 830
US: +1 866 928 7517
Participant Pin Code: 50843776#
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
Investor.relations@bandmretail.com
Media
For media please contact +44 (0) 207 379 5151
Maitland
Greg Lawless
Tom Eckersley
bmstores-maitland@maitland.co.uk
Notes to editors
B&M European Value Retail S.A. is a variety retailer with 487 stores in the UK operating under the "B&M" brand and 55 stores in Germany primarily operating under the "Jawoll" brand as at 26 December 2015. 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