B&m European Value Retail Plc · LSE:BME
B&m European Value Retail — H1 FY24 Earnings Presentation
21 slides from B&m European Value Retail's earnings presentation, November 2023
Slide 1: FY24 Interim Results Presentation
B&M European Value Retail S.A. FY24 Interim Results Presentation 26 weeks to 23 September 2023
Slide 2: Agenda
Agenda Introduction 1 Alex Russo Financials 2 Mike Schmidt Growth strategy 3 Alex Russo Q&A 4 2
Slide 3: Introduction
Introduction Alex Russo Chief Executive Officer
Slide 4: Group highlights
Group highlights Growth across all three businesses with Group revenues increasing by 10.4% in H1 FY24 to £2,549m Group adjusted EBITDA1 of £269m (10.5% of sales) +16.1% YoY +10.4% £269m Group revenue Group adjusted Cash generated from operations of £352m with inventory level growth EBITDA1 clean ah
Slide 5: Continued disciplined growth through all environments
Continued disciplined growth through all environments Post-pandemic FY21 COVID-19 pandemic FY20 4,983 4,801 4,673 Brexit uncertainty FY16-17 3,813 3,486 Global Financial Crisis FY08-10 2,976 +10.9% 2,431 5 year CAGR 2,053 1,647 +15.5% 1,272 5 year CAGR 993 713 764 538 427 256 FY08 FY09 FY10 FY11 FY1
Slide 6: Significant growth potential ahead
Significant growth potential ahead Existing stores: New stores: A core driver of growth Profitable square footage growth momentum France will provide Heron Foods remains growth for many years a solid growth platform and offers benefits to the and offers benefits to the core business core business 6
Slide 7: Financials
Financials Mike Schmidt Chief Financial Officer
Slide 8: P&L overview
P&L overview £m H1 FY24 H1 FY23 YoY Key Highlights Revenue 2,549 2,309 10.4% • Strong revenue growth across all three fascias Gross Profit 941 808 16.4% % 36.9% 35.0% 191 bps • Gross profit growth of over 16% driven by revenue growth and strong seasonal sell-through which led to Operating costs (672
Slide 9: Revenue
Revenue Group (£m) B&M UK (£m) Key Highlights 2,600 2,549 • Total Group revenues increase by 10.4% 2,525 2,100 2,045 2,450 2,000 2,375 1,892 • B&M UK LFL growth of 6.2% in H1 is an excellent 2,309 1,900 2,300 result through positive transaction numbers 2,225 +10.4% 1,800 +8.1% 1,700 • Q1 – strong st
Slide 10: Adjusted EBITDA
Adjusted EBITDA1 Group (£m) B&M UK (£m) Highlights 280 240 233 269 270 230 260 220 • Group adjusted EBITDA1 increased by 16.1% YoY, with effective and 250 210 disciplined cost control across all three fascias 240 232 200 200 230 10.0% 10.5% 190 10.6% 11.4% 220 • B&M UK’s adjusted EBITDA1 margin incr
Slide 11: Operating costs as % of revenue by fascia
Operating costs as % of revenue by fascia Group B&M UK Key Highlights 27.0% 26.5% 27.0% 26.0% 26.0% 26.5% 25.0% 26.0% 25.5% 24.0% 25.5% • Underlying costs1 as a % of sales falling from scale effects 25.0% 23.0% 25.0% £611m £663m 22.0% 24.5% £483m £511m 21.0% 24.0% • Minimum wage main inflationary dr
Slide 12: Cash flow generation remains strong
Cash flow generation remains strong Operating cash flow (£m) Commentary H1 FY24 H1 FY23 £’m Adjusted EBITDA (pre-IFRS 16) 269 232 • Working capital outflow of £22m reflecting a normalised half Change in working capital (22) 41 year movement • New store capex (18) (16) • Cash discipline continues in
Slide 13: Growth strategy
Growth strategy Alex Russo Chief Executive Officer
Slide 14: B&M UK: Grocery & Non-Grocery highlights
B&M UK: Grocery & Non-Grocery highlights Grocery Non-Grocery • Our price position is consistently strong against the competition • Re-opening of China in terms of travel has given even greater speed to market and development of new products • Supplier collaboration remains very strong to drive volum
Slide 15: B&M UK: Store standards & supply chain
B&M UK: Store standards & supply chain • Simplification of the operation • Independent visits outside of the retail field team with 300+ visits taking place per week • Operational compliance a focus within the visits • Cultural change embedded throughout the retail team • Material step change in sto
Slide 16: B&M UK: Pipeline progress and outlook
B&M UK: Pipeline progress and outlook Key highlights Expect approximately 35 13 gross new stores opened in H2 FY24 openings to include major out of town shopping parks such gross new stores (including H1 (including 3 relocations) with as Birmingham (Fort) and York (Monks Cross) relocations) in FY24,
Slide 17: B&M France: Grocery & Non-Grocery highlights
B&M France: Grocery & Non-Grocery highlights Grocery Non-Grocery • Our price position remains consistently strong against the • Double digit LFL growth in H1 competition • Successful launch of SIMPLY EVERYDAY range • 18% more new SKUs vs. FY23 • Development of small cube SKUs to increase sales densi
Slide 18: B&M France: Store standards & supply chain
B&M France: Store standards & supply chain Store standards Supply chain progress • Improved truck filling rate through enhanced picking processes • Improved staff productivity • Reduced time between store ordering and store delivery • Implementation of B&M UK Warehouse Management System • Continued
Slide 19: Heron Foods: Highlights
Heron Foods: Highlights Highlights • Double digit LFL growth underpinned by positive customer transaction numbers • Excellent EBITDA margin % demonstrates another half of outperformance vs. the competition • Achieving consistently high store standards and great core stock availability everyday • Mea
Slide 20: FY24 summary & outlook
FY24 summary & outlook Summary • We expect to open not less than 125 new B&M UK stores over the next three years • We will continue to grow France and Heron Foods in a disciplined and profitable way • The business will maintain a high degree of discipline on EDLP pricing, limited range assortment an
Slide 21: Q&A
Wy IN VY Q&A
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