B&M: positive full year results

Date : 31 May 2018

Group revenue grew by 22.4% to £2.98bn in the year ending 31st March 2018. This was driven by network expansion and positive like-for-likes. 

Strong performance across the business

Group revenue grew by 22.4% to £2.98bn, and for its core fascia B&M reported a strong like-for-like performance of 4.7% year or year. This compares to 3.1% like for likes for the same period last year.

  • B&M UK sales grew 13.9%, with like-for-likes up 4.7%. 39 net new stores in the period boosted sales
  • Heron delivered £210m revenue and single digit like-for-like growth in the eight months since acquisition
  • In Germany sales grew 12.3%. The group opened 11 net new Jawoll stores, a slightly slower rate of expansion than planned, reflecting the changed priorities of its new management team

Chilled and frozen trial continues; set to roll-out to 300 stores

Following its acquisition of Heron Foods in 2017, B&M has launched a chilled and frozen trial in 70 of its stores and these stores have seen a 5% improvement in like for likes.

B&M plans to continue roll out to a further 10 before pausing until its Bedford Distribution Centre is operational and able to manage wider expansion. This will support chilled and frozen execution at 300 B&M locations.  

Outlook: further store expansion

B&M remains committed to achieving its long term goal of 950 stores. To date the discounter has reported no material cannibalisation from its rapid expansion, helped by B&M’s shopper catchment area being a 10 minute drive time. A clustering strategy also provides benefits for logistics, area management and brand recognition. B&M does not have ambitions to trade in central London, however has been growing its presence in the South East. The region now accounts for 12% of B&M revenue, with considerably higher than average store contribution.  

Heron Foods plans to grow its store network at a rate of 15-20 stores per year.

Jawoll has a pipeline of 10 new stores for the year ahead. Its focus will be on better aligning its product and operating model with the UK business. B&M also remains open to the opportunity for further M&A activity to build scale in Europe.  

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