Business
Half-year Report
Half-year Report.
About this update from B&m European Value Retail Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n \n \n 10 November 2022\n \n \n \n B&M European Value Retail S.A.\n \n \n \n \n \n \n \n \n \n FY23 Interim Results Announcement\n \n \n \n \n \n \n \n \n \n Solid underlying growth in a tough environment\n \n \n \n \n \n \n \n \n B&M European Value Retail S.A. (\"the Group\"), the UK's leading variety goods value retailer, today announces its interim results for the 26 weeks to 24 September 2022.\n \n \n \n \n \n \n \n \n HIGHLIGHTS\n \n \n \n · \n Group revenues increased by 1.8% on prior year to £2,309m (+1.9% constant currency1). This represents a step up in Q2 sales, which rose by 6.3% compared to a (2.3)% decline in Q1. Momentum has continued into Q3\n \n \n · \n Group adjusted EBITDA4 of £232m and margin of 10.0% on a pre-IFRS16 basis versus £282m and margin of 12.4% in the prior year, driven by the reduction in gross margin but a strong increase compared to the pre-pandemic adjusted EBITDA figure in HY1 FY20 of £151m and margin of 8.5%. Current year group adjusted EBITDA on a post-IFRS16 basis was £340m versus £385m in the previous year\n \n \n · \n Group cash generated from operations was £370m (H1 FY22: £201m), year on year (\"YoY\") growth of 83.3% reflecting planned stock reductions and strong inventory controls\n \n \n · \n B&M UK fascia2 revenue decreased by (0.9)% on prior year, with like-for-like3 (\"LFL\") revenues decreasing by (3.9)%. However, Q2 LFLs were up 2.0%, compared with a decline of (9.1)% in Q1, which was affected by the strong seasonal sales in Q1 in the previous year. Q2 3-year LFL increased by 14.4% with strong transaction numbers\n \n \n · \n B&M UK adjusted EBITDA4 % decreased to 10.6% (H1 FY22: 13.5%), which was driven by the trading gross margin % reduction of 213 bps8, largely due to higher markdowns in the gardening category resulting from the late arrival of warm weather\n \n \n ·\n Total gross new store openings in in H1 FY23 for B&M UK were 10, 4 in France and 7 in Heron. New space is performing well and store standards continue to strengthen\n \n \n ·\n Strong strategic and financial progress in France as sales increased by 18.2%, with all stores now under the B&M banner and adjusted EBITDA4 of £18m (9.6% of sales) versus £11m in H1 FY22 (7.3% of sales). The busines...