6th Jan 2022 10:52
(Alliance News) - B&M European Value Retail SA on Thursday said performance in its third quarter was "very strong" and lifted its adjusted earnings before interest, taxes, depreciation, and amortization guidance in response.
The Luxembourg-based variety goods value retailer said revenue in the 13 weeks to December 25 grew a marginal 0.1% year-on-year on a constant currency basis to GBP1.40 billion.
B&M said it saw strong performances across categories, with "excellent" sell-through of seasonal ranges that supported gross margins. It is also benefitted from sustained momentum in B&M France with revenue of GBP108.8 million, up 30% from GBP83.7 million the year before.
Nonetheless, total B&M UK revenue still lagged, down 2.5% to GBP1.18 billion compared to GBP1.21 billion a year prior.
The retailer said that nine gross new B&M fascia stores in the UK opened in the third quarter, with two closures.
Nevertheless, the company expects to open a further 13 before the end of the current financial year.
Performance in its Heron Foods business improved slightly, with 2.2% sales growth to GBP105.2 million from GBP102.9 million a year before.
The FTSE-100 listed company now expects annual adjusted earnings before interest, tax, depreciation and amortisation between GBP605 million and GBP625 million.
It noted that this is ahead of analysts' current estimations of GBP578 million.
Despite supply chain disruptions and inflationary headwinds and the uncertainty surrounding Covid-19 related restrictions, the retailer said it is confident in its prospects for this year.
"The group has delivered a very strong golden quarter, with our two-year like-for-like performance demonstrating strong retention of new customers. Our decision to take receipt of imported Christmas stock early in the season meant we were able to provide customers with great products at great prices. The consistency of performance in the core B&M UK business reflects the growing appeal of our stores as a destination visit for seasonal products, as well as the strength of our supply chain," Chief Executive Simon Arora said.
Shares were up 0.4% at 636.40 pence each on Thursday morning in London.
By Abby Amoakuh; [email protected]
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