Last checked at 23 Jan 2015 07:00
23 January 2015
B&M European Value Retail S.A.
Trading Update
Strong Q3 Trading in Line with Expectations
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 28 September 2014 to 27 December 2014.
Revenue
13 weeks to 27 December 2014 | 13 weeks to 28 December 2013 | 39 weeks to 27 December 2014 | 39 weeks to 28 December 2013 | |
Total Group Sales Revenue |
£527.9m |
£409.9m |
£1267.3m |
£980.4m |
Total Group Sales Growth |
+28.8% |
+26.4% |
+29.3% |
+29.7% |
UK Like-for-Like Sales Growth |
+4.5% |
+6.2% |
+4.7% |
+7.0% |
Group sales for the 13 weeks ending 27 December 2014 increased by 28.8% (2013: 26.4%) to £527.9m (2013: £409.9m).[1]
The UK business sales for the 13 week period increased by 20.5% to £493.8m (2013: £409.9m) with like-for-like sales growth of +4.5% on top of a strong quarter the previous year (2013: +6.2%).
[1] Sales from JA Woll, which was acquired on 30 April 2014 are included in the current period figures but not for the prior year.
Strategy
At the end of the quarter the UK business of the Group had 417 stores trading, having opened 24 stores over the last 13 weeks. We expect to open at least 50 net new stores in the UK this financial year, and have a strong pipeline of at least 45 new stores across the UK for the following financial year.
Whilst market conditions are competitive, particularly in FMCG products, the Group remains confident its unique sourcing strategy and store expansion opportunities will allow it to increase market share in both the UK and Germany.
Financial Position and Outlook
The Group's financial position remains soundand it is confident of meeting full year market expectations.
Simon Arora, Chief Executive, said,
"The Group's third quarter trading performance has been pleasing despite the competitive market. Our Christmas Decoration and Gifting ranges enjoyed a good rate of sell-through and we believe we are becoming a destination store for these important seasonal categories. The 44 new stores opened by the end of the third quarter have also traded well over their first Christmas season. We expect to meet market expectations of revenue and profit growth in our maiden year as a quoted company."
Conference Call
A conference call to discuss the Trading Update will be held on Friday 23 January at 07:45 am (UK).
Dial-in details are:
UK & International: + 44 (0) 203 1394 830
US: +1 866 928 7517
Participant Pin Code: 12909863#
Enquiries
B&M European Value Retail S.A.
For further information please contact +44 (0) 151 728 5400
Simon Arora, Chief Executive
Paul McDonald, Chief Financial Officer
Investor.relations@bandmretail.com
Media
For media please contact +44 (0) 207 379 5151
The Maitland Consultancy Limited
Neil Bennett
Tom Eckersley
bmstores-maitland@maitland.co.uk
Notes to editors
B&M European Value Retail S.A. is a variety retailer with 417 stores in the UK operating under the "B&M" brand and 49 stores in Germany primarily operating under the "Jawoll" brand as at 31 December 2014.
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