B&M European Value Retail S.A. Delivered a good first half performance.

B&M European Value Retail S.A. (LON:BME), the UK’s leading variety goods value retailer, today announced its interim results for the 26 weeks to 29 September 2018.

HIGHLIGHTS

· Group revenues increased by +16.1% to £1,563.0m, +16.0% at constant currency1

· B&M2 UK revenues were up +7.1%, which includes like-for-like revenues3 of +0.9% on an underlying basis4 excluding the non-comparable Easter trading week which fell in week 53 of FY18. Like-for-like revenues were flat if no adjustment is made for the non-comparable Easter trading week

· At the start of Q3 like-for-like sales growth so far in B&M fascia stores in the UK has been similar to H1, and the business is well placed for the “golden quarter” trading

· Group adjusted EBITDA5 increased by 13.5% to £131.8m (FY18: £116.1m) and the B&M UK adjusted EBITDA5 increased by +12.1%

· Profit before tax increased by 32.5% to £115.0m (FY18: £86.8m)

· Earnings per share 9.3p, an increase of 36.8% (FY18: 6.8p). Adjusted Diluted earnings per share5 8.0p, up 14.3% (FY18: 7.0p)

· Cash flow from operations £67.0m (FY18: £44.2m), reflecting EBITDA5 growth and working capital discipline

· Interim dividend6 increased by 12.5% to 2.7p per share (FY18: 2.4p per share) to be paid on 21 December 2018

· 22 gross new B&M UK store openings of which 5 are relocations (net 15 after 2 closures) and on track to open at least 58 gross new B&M stores this financial year

· German business, Jawoll, opened 2 new stores in the period, and on track to open 10 new stores this financial year

· Jawoll’s revenue growth was +4.1%, although margin was impacted as expected by clearance activity on old stock lines as Jawoll introduces more B&M sourced products

· Heron Foods has continued to trade well and opened 9 gross new stores, net 4 and on track to open at least 20 gross new stores this financial year

· Babou, a value retailer in France, acquired in October 2018 with 95 stores, providing a platform for future growth in a large and attractive market

Simon Arora, Chief Executive of B&M, said,

“B&M has delivered a good first half performance. The core B&M fascia stores made good progress and we have made a solid start in the second half of the financial year. Heron Foods has grown strongly in the UK, and in Jawoll the new management team is now utilising the B&M supply chain, with clear early signs that customers are responding positively to the new products.

I’m delighted that having completed our recent purchase of Babou in France, we are now positioned to expand B&M’s disruptive, value-led model in Europe’s three largest consumer markets.

With the core B&M UK business having had a record half year performance, we are well placed to prosper in a difficult and uncertain retail environment.”

Financial Results (unaudited)

1 Constant currency comparison involves restating the prior year Euro revenues using the same exchange rate as used to translate the current year Euro revenues.

2 References in this announcement to the B&M business, includes 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, includes both the Heron Foods fascia and B&M Express fascia convenience stores in the UK.

3 Like-for-like revenues relates to the B&M estate only and includes 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 the previous period. This 14 month approach has been taken as it excludes the two month halo period which new stores experience following opening.

4 The underlying like-for-like calculation excludes the Good Friday Easter week’s trading from the previous financial year, as there was no Good Friday Easter week in the current financial year.

5 The Directors consider adjusted figures to be more reflective of the underlying business performance of the Group and believe that this measure provides additional useful information for investors on the Group’s performance. Further details can be found in notes 3 and 5.

6 Dividends are stated as gross amounts before deduction of Luxembourg withholding tax which is currently 15%.

7 The H1 FY 2019 figures represent the 26 week performance to 29 September 2018 and the H1 FY2018 figures represent the 26 week performance to 23 September 2017.

8 For the prior period in FY 2018, Heron Foods was only part of the Group for 8 weeks out of the whole 26 week period. Total Group revenues in the 26 week period to 29 September 2018 excluding Heron Foods were £1,387.9m, being an increase of 6.9% compared with the 26 week period to 23 September 2017. The operating costs of the Group for Heron Foods in the 26 week period to 29 September 2018 were £45.4m excluding depreciation.

9 Net capital expenditure includes the purchase of property, plant and equipment, intangible assets and proceeds of sale of any of those items.

10 Net debt was £588.4m at the period end. This can be reconciled as £637.6m of gross debt (note 10) and £8.4m of finance leases, £6.9m of overdraft netted against £64.5m of cash.