B&M: strong start to 2019

Date : 25 July 2019

Variety discount retailer B&M's Q1 results (31st March 2019 to 29th June 2019) show a very positive start to the year, with record breaking sales. The performance shows how relevant the retailer remains in the current trading environment, with the its value proposition continuing to appeal to shoppers.

Growth across all banners

  • Group revenue +21.4% to £967.6m
  • B&M UK +13.8% to £649.2m
  • Heron Foods +8.1% to £93.1m
  • Jawoll (Germany) +1.9% to £63.1m
  • Babou (France) revenue was £72.6m against a non-comparable period

B&M UK sales driven by solid Easter performance

Like-for-like sales were +3.9% in the quarter, an improvement on 2018 when like-for-like performance was +0.7%. This was a third record breaking Easter period for the retailer.

The results follow on from positive growth in FY2018 driven by new store openings. For the 52 weeks to 31st March 2019, total group revenue was up 17.1% to £3.49bn and B&M UK grew by 8.7% to £2.8bn.

Chief Executive Simon Arora said;

"The Group has made a solid start and we are on track with our plans for the year as a whole, with a strong performance in the B&M UK business."

Heron Foods continues to grow

B&M was pleased with the performance of Heron Foods, with positive trading on top of a good performance in 2018. During the period it opened 6 new stores, bringing its total estate to 287.

International stores are being adapted to B&M's proposition

Chief Executive Simon Arora said;

"The transitional changes to the product offers in Babou (France) and Jawoll (Germany) are now taking shape."

Around 40% of the new product ranges that are sourced from the B&M supply chain in China, have now been launched by Babou. The remaining lines are due to arrive over the second quarter, allowing Babou to reduce its reliance on clothing and brings its range closer to that of B&M's.

There is a continued focus on resolving the warehouse and logistics challenges in Jawoll. The retailer expects these will improve by the end of the first half of the current financial year.

For subscribers looking to find out more about the existing B&M international business, read our store report of Babou.

First B&M store to open in France

B&M's international expansion will continue as its opens it's first B&M store in Castres, a city close to Toulouse, in the south of France. The store is due to open in September and will be around 1300 square meters. It will be competing with local variety discounters Noz and Action.  

For subscribers looking to find out more about French variety discounters, read our store report of Action.

Confident about the year ahead

B&M is on track to open 45 net new B&M UK stores in the period, after opening 12 in Q1. It is also looking to open between 15 and 20 new Heron Foods, 5 Jawoll and 5 Babou. The retailer has said the pipeline for store openings in 2020 looks healthy. It expects further profit growth and strong cash generation throughout 2019.

Chief Executive Simon Arora said;

"We look forward to the remainder of the year with confidence."

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