Last checked at 17 Jul 2015 07:00
17 July 2015
B&M European Value Retail S.A.
Trading Update
Strong Q1 Growth
B&M European Value Retail S.A. ("the Group"), the UK's leading multi-price value retailer, today provides a trading update for the first quarter of its current financial year, relating to the 13 week period from 29 March to 27 June 2015.
Revenue
13 weeks to 27 June 2015 |
13 weeks to 28 June 2014 | |
Total Group Sales Revenue |
£456.6m |
£367.0m |
Total Group Sales Growth (constant currency) |
+25.3% |
+31.9% |
Total Group Sales Growth (actual rates) |
+24.4% |
+31.9% |
UK Like-for-Like Sales Growth |
+1.1% |
+6.0% |
Group sales revenue for the 13 weeks ending 27 June 2015 increased by 25.3% (2014: 31.9%) on a constant currency basis. On an actual currency basis, total sales revenue increased by 24.4% (2014: 31.9%) to £456.6m (2014: £367.0m)
The UK business' sales revenue for the 13 week period increased by 22.8% to £418.8m (2014: £341.2m) with like-for-like sales growth of +1.1%.
Strategy
At the end of the quarter the Group's UK business had 450 stores trading, having opened 25 net new stores over the last 13 weeks, against the context of its UK store target of 850 stores. Particularly favourable current market conditions and specific opportunities in the commercial property market mean that this financial year the UK business expects to open 80 net new stores. We also have a strong pipeline of new stores for the following financial year.
Our two new format pilot stores in Germany are trading in line with budget and we expect to open more of the new format stores this financial year whilst we await the expansion in warehouse capacity planned for March 2016.
The positive Like-for-Like performance this quarter is testament to the robust and balanced nature of the business model, as it was achieved despite disappointing weather in May which held back sales of outdoor seasonal products. Whilst UK market conditions are competitive for Grocery and FMCG products, the business delivered positive Like-for-Like growth over the quarter in this category, despite the deflationary backdrop. The performance of new UK openings over the quarter has been strong with a good number of recent openings now being top quartile performers in the Group. We remain confident that future store expansion opportunities will allow us to increase market share in both the UK and Germany.
Financial Position and Outlook
The Group's financial position remains sound and we are confident of at least meeting full year market consensus profit expectations.
Simon Arora, Chief Executive, said,
"I am pleased to report that the Group has delivered another strong Spring trading period. We have opened 25 stores in just 13 weeks, which is a record rate of openings, and testament to the hard work and dedication of our colleagues. As consumer spending improves, it is apparent that shoppers remain keen to spend with value retailers and we continue to win market share."
Conference Call
A conference call to discuss the Trading Update will be held on Friday 17July 2015 at 08:30 am (UK).
Dial-in details are:
UK & International: +44 (0) 203 1394 830
US: +1 866 928 7517
Participant Pin Code: 46548942#
Enquiries
B&M European Value Retail S.A.
For further information please contact +44 (0) 151 728 5400
Simon Arora, Chief Executive Officer
Paul McDonald, Chief Financial Officer
Investor.relations@bandmretail.com
Media
For media please contact +44 (0) 207 379 5151
Maitland
Neil Bennett
Robbie Hynes
bmstores-maitland@maitland.co.uk
Notes to editors
B&M European Value Retail S.A. is a variety retailer with 450 stores in the UK operating under the "B&M" brand and 51 stores in Germany primarily operating under the "Jawoll" brand as at 27 June 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