Variety discounter B&M's Q3 results (13-week period from 27 September to 26 December 2020) show positive growth across the majority of the business, particularly its UK banner.
Revenue growth across all banners, expect Babou
Group revenue +22.5% to £1,398.5m (2019: £1,138m)
B&M UK +26.6% to £1,211.8m (2019: £957.4m)
Heron Foods +7.6% to £102.9m (2019: £95.6m)
Babou (France) -1.4% to £83.7m (2019: £85.0m)
As a result of the voluntary payment of £80m in business rates relief, B&M expects adjusted EBITDA for the full year to be in the range of £540m to £570m, lower than the guidance it gave at the start of December.
B&M UK’s strong like-for-like growth
As well as strong revenue growth, B&M UK stores reported like-for-like growth of 21.1% in the quarter, compared to +0.3% in Q3 last year. In the UK, the retailer opened net 16 new stores during the quarter. In Q4, B&M plans to open a further 18 stores, bringing the total for the full year to 45 gross new stores, offset by 10 closures.
According to the retailer, its value convenience store chain Heron Foods, delivered another quarter of “solid” LFL sales growth.
Babou & B&M France’s revenue decreased 1.4%
As a result of the four-week lockdown restrictions in France, which ended on 28 November, Babou and B&M France revenues saw a slight decline, of 1.4%, during the quarter. According to B&M, its sales performance remained strong outside of the lockdown period.
Simon Arora, B&M’s chief executive, said:
“Notwithstanding our status as an essential retailer, with lockdown restrictions in the UK having tightened there remain uncertainties ahead. With our combination of exceptional value and convenient Out of Town locations, we are confident that our business model will prove highly relevant to the needs of customers in 2021.”
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Retail Analysis subscribers can take a look at the latest results and news from the UK’s leading variety discounters in our UK variety discount Q4 channel snapshots.