B&M European Value Retail S.A. (LON:BME), the UK’s leading variety goods value retailer, has announced its Preliminary Results for the 53 weeks financial reporting period to 30 March 2024. The comparative reporting period is for the 52 weeks ended 25 March 2023.
Highlights
| Fascia Performance1 | Revenue growth % | Adjusted EBITDA2 (pre-IFRS 16) margin % | Adjusted operating profit2 margin % | |||
| FY24 | FY23 | FY24 | FY23 | FY24 | FY23 | |
| B&M UK | 8.5% | 4.0% | 12.6% | 12.4% | 12.4% | 12.3% |
| B&M France | 19.2% | 22.1% | 9.1% | 9.6% | 9.5% | 8.8% |
| Heron Foods | 15.3% | 18.1% | 6.4% | 6.1% | 4.9% | 3.8% |
| · | Group revenues increased by 10.1% to £5.5bn (+10.1% constant currency3), or 7.8% excluding the 53rd week |
| · | All fascias delivering volume growth through both positive like-for-like4 (“LFL”) customer transaction numbers and new space growth |
| · | Group adjusted EBITDA2 (pre-IFRS 16) of £629m and margin of 11.5% (FY23: 11.5%) is a 9.7% increase year-on-year and is at the top end of the Group’s guidance range of £620m-£630m |
| · | Group adjusted operating profit2 increased 10.9% to £614m (FY23: £554m), with volume driven profit growth and strong cost control across the three businesses |
| · | Strong post-tax free cash flow5 of £382m (FY23: £464m) with a disciplined approach to inventory management – Group inventory of £776m (FY23: £764m) |
| · | Statutory operating profit of £607m (FY23: £536m) and statutory profit before tax of £498m (FY23: £436m) |
| · | Opened 78 gross new stores across the Group (47 in B&M UK, 20 in Heron Foods and 11 in B&M France) |
| · | Net debt6 to adjusted EBITDA2 (pre-IFRS 16) leverage ratio of 1.2x (FY23: 1.3x). Net debt including leases7 to adjusted EBITDA (post-IFRS 16) 2.4x (FY24: 2.5x) |
| · | Recommended final dividend8 of 9.6p per ordinary share, bringing the full year dividend to 14.7p per share in addition to the 20.0p special dividend8 paid in January 2024 (FY23: 20.0p) |
Alex Russo, B&M European Value Retail Chief Executive, said,
“FY24 has been another good year for B&M. The three key components of our business – buying, logistics and retail, are working in balance and we continue to deliver excellent products at everyday low prices to our consumers. We are well set for the years ahead.
During Q4, we accelerated our opening programme, and the step up in openings is continuing. In FY25, we will open not less than 45 gross new B&M stores in the UK, plus a meaningful number in France and for Heron. We have also raised our long-term store target to not less than 1,200 B&M UK stores, which provides a clear runway of profitable growth ahead for us, from our current base of 741 B&M UK stores.
We have demonstrated strong volume-led momentum in our business throughout our trading history and that has continued, driving our profits ahead of both pandemic and pre-pandemic benchmarks. Despite the more challenging comparatives, with continued new store openings, and a laser focus on low prices and best in class retail standards, we remain confident in our outlook for cash generation and profit growth.”
Financial results
| FY24 | FY23 | Change | |
| Total Group revenue | £5,484m | £4,983m | 10.1% |
| Group adjusted EBITDA2 (pre-IFRS 16) | £629m | £573m | 9.7% |
| Group adjusted EBITDA2 (pre-IFRS 16) margin % | 11.5% | 11.5% | (3) bps |
| Group adjusted operating profit2 | £614m | £554m | 10.9% |
| Group statutory operating profit | £608m | £536m | 13.6% |
| Group statutory operating profit margin % | 11.1% | 10.7% | 34 bps |
| Group cash generated from operations | £862m | £866m | (0.4)% |
| Group post-tax free cash flow5 | £382m | £464m | (17.8)% |
| Group statutory profit before tax | £498m | £436m | 14.1% |
| Adjusted (pre-IFRS 16) diluted EPS2 | 36.8p | 36.5p | 0.9% |
| Statutory diluted EPS | 36.5p | 34.7p | 5.2% |
| Net debt6 | 737m | 724m | 1.8% |
| Net debt including leases7 | 2,094m | 2,025m | 3.2% |
| Ordinary dividends8 | 14.7p | 14.6p | 0.7% |
Notes:
1. References in this announcement to the B&M UK 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.
2. Adjusted values are considered to be appropriate to exclude unusual, non-trading and/or non-recurring impacts on performance which therefore provides the user of the accounts with additional metrics to compare periods of accounts. See notes 2, 3 and 4 of the financial statements for further details.
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 relate to the B&M UK estate only (excluding wholesale revenues) and are based on either 53 week vs. 53 week or 14 week vs. 14 week comparison periods. They 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 FY23.
5. Post-tax free cash flow is an Alternative Performance Measure. Please see note 3 of the financial statements for more details and reconciliation to the Consolidated statement of cash flows. Statutory Group cash generated from operations was £862m (FY23: £866m). This statutory definition excludes payments for leased assets including the leasehold property estate.
6. Net debt comprises interest-bearing loans and borrowings, and cash and cash equivalents. Net debt was £737m at the period end, reflecting £919m as the value of gross debt netted against £182m of cash. See notes 18, 21 and 28 of the financial statements for more details.
7. Net debt including lease liabilities is the above plus the current and non-current lease liabilities recorded on the Consolidated statement of financial position.
8. Dividends are stated as gross amounts before deduction of Luxembourg withholding tax which is currently 15%.
Results Presentation
An in-person presentation for analysts in relation to these FY24 Preliminary Results will be held today at 09:30 am (UK) at Bank of America Merrill Lynch, 2 King Edward St, London EC1A 1HQ. Attendance is by invitation only and attendees must be registered in advance.
A simultaneous live audio webcast and presentation will be available via B&M European Retail’s corporate website at Reports & Presentations l B&M Stores (bandmretail.com)
