B&M has announced very positive FY2018 results for the 52 weeks to 31st March 2019.
- Total group revenue was up 17.1% to £3.49bn
- B&M grew by 8.7% to £2.8bn
- Heron Foods had growth of 69% with sales of £354m
- Profit before tax increased 10.3% to £249m
B&M continues to resonate with shoppers
B&M reported increased shopper numbers and average transaction values. However like-for-like performance was subdued at +0.7%. The main revenue growth has been driven by the retailer continuing to rapidly open new stores. 44 new stores opened in the previous financial year, bringing the total to 620.
B&M plans to continue with its rapid expansion, aiming to open another 45 in the current financial year. The retailer has a target of 950 stores in the UK in the future. New stores are expected to open in counties such as Yorkshire and the Midlands. There are currently no plans to expand further in London.
Chief Executive Simon Arora said;
"B&M has again delivered strong results against the challenging backdrop of continued structural change in our industry, rising costs and uncertain times for consumers, demonstrating that its value credentials remain as resonant as ever with consumers, whether they need a bargain or just enjoy one."
Latest in-store initiatives
B&M continues to adapt its proposition to suit the changing UK market and demands of shoppers. This includes the roll out of its new banner 'B&M Express'. It began by converting an initial seven stores in September 2018 and now has 22.
Grocery is becoming more of a focus for the retailer. It continues to roll out the new chilled and frozen section to more of its stores, with the aim of having it in 300 branches nationwide in the future.
Subscribers can find out more about the new frozen range in our Bristol store visit report.
- Jawoll, the German business revenue was £214m a revenue increase of 6.7%, with like-for-likes 2.6%
- Babou, the French business B&M acquired in October 2018 revenue was £129m
Plans are to continue overseas expansion with the desire to bring the direct sourcing model to these markets soon. B&M believes it has established good platforms in Germany and France, despite Germany struggling and not achieving profitability.
Simon Arora has said;
"There is much work to be done to implement the disruptive, value-led model in these large new markets."
For subscribers looking to find out more about the B&M international business read our retail execution of Babou.
B&M remains confident it will be able to continue to deliver growth in the coming year and beyond, increasing its market share. The year has got off to a positive start already with with a boost of 6.7% like-for-like sales in Q4 and a record breaking Easter.
Store openings remain on track. Plans are for a further 45 B&M stores, 15 Heron, 5 Jawoll and 5 Babou by the next financial year.
The group expects further profit growth and strong cash generation in 2019.
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