1st Jul 2020 09:33
(Alliance News) - B&M European Value Retail SA on Wednesday reported double-digit revenue growth in the first quarter and said it intends to continue to grow profitability going forward.
In addition, the FTSE 250-listed firm launched GBP350 million senior secured notes due 2025 offering. The notes will be offered in connection with the refinancing of some of the company's existing senior credit facilities and existing notes, it said.
The existing facilities will be replaced by new senior credit facilities, which will include a new term loan A facility of GBP300 million and a revolving credit facility of up to GBP155 million.
If successful, the proceeds from the offering of the notes, together with the new term loan A facility and cash on hand, will be used to refinance all of the the existing senior facilities, to redeem and repay in full B&M's existing 4.125% senior secured notes due 2022, to pay fees and expenses relating to the refinancing, and for general corporate purposes.
Turning back to trading, the general merchandise retailer reported a "strong" start to the new financial year, which begun on March 29, as B&M's locations continue to prove "highly attractive" to customers.
Revenue growth in the quarter to June 27 was 28% to GBP1.15 billion, with B&M UK revenue growth of 34% to GBP987.8 million. On a like-for-like basis, revenue grew by 27% against 3.9% a year ago.
B&M UK - excluding B&M Express - has 656 stores trading, versus 632 trading at the end of the first quarter, with no new stores opened in the quarter due to the impact of Covid19.
Heron Foods, meanwhile, B&M's convenience store chain, saw two new stores opened in the quarter and double-digit like-for-like sales growth. Revenue over the period rose to GBP113.0 million from GBP93.1 million year-on-year.
"The group has made a strong start to the financial year, with a particularly strong performance in our UK businesses, and progress now resumed in France after an 8 week closure period," said Chief Executive Simon Arora.
Going forward, B&M said, against a highly uncertain economic backdrop and continued impacts from Covid-19, it is in a strong position to continue to grow profitably.
B&M shares were trading 4.4% higher in London on Wednesday at 414.94 pence each.
By Evelina Grecenko; [email protected]
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