B&m European Value Retail Plc · LSE:BME
B&m European Value Retail — FY2024 Earnings Presentation
28 slides from B&m European Value Retail's earnings presentation, Jun 5, 2024
Slide 1: FY24 Preliminary Results Presentation
B&M European Value Retail S.A. FY24 Preliminary Results Presentation 53 weeks to 30 March 2024
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: FY24 Group highlights
FY24 Group highlights Volume led growth across all three businesses with Group revenues1 increasing by 10.1% to £5.5bn Group adjusted EBITDA2 of £629m (11.5% of sales) at the top- +10.1% £629m end of guidance range Group revenue Group adjusted growth EBITDA1 Strong post-tax free cash flow3 of £382m
Slide 5: Continued disciplined growth through all environments
Continued disciplined growth through all environments Post-pandemic FY21 COVID-19 pandemic FY20 5,484 4,983 4,801 4,673 Brexit uncertainty FY16-17 3,813 3,486 Global Financial Crisis FY08-10 3,030 +9.5% 4 year CAGR 2,431 2,053 1,647 +16.5% 1,272 4 year CAGR 993 713 764 538 427 256 78 130 FY06 FY07 F
Slide 6: Significant growth potential ahead
Significant growth potential ahead Existing B&M UK stores: New B&M UK 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 co
Slide 7: Financials
Financials Mike Schmidt Chief Financial Officer
Slide 8: Our financial model remains unchanged
Our financial model remains unchanged Profitable, sustainable growth Cash discipline • Volume led growth from LFL and new stores • Excellent cash generation • Significant potential ahead • Working capital discipline • Relentless operating cost discipline • Capital light business model Robust balance
Slide 9: Summary profit and loss
Summary profit and loss £ millions, FY24 FY23 YoY (53 weeks) (52 weeks) Revenue 5,484 4,983 10.1% Adjusted EBITDA (pre-IFRS 16)1 629 573 9.7% % 11.5% 11.5% (3) bps Depreciation and amortisation (pre-IFRS 16) (82) (76) 6.9% Operating impact of IFRS 16 67 57 17.0% Adjusted operating profit1 614 554 10
Slide 10: Revenue
Revenue Group (£m) B&M UK (£m) Number of stores (year end) 5,600 5,484 4,500 5,500 4,410 5,400 4,400 335 5,300 4,300 5,200 4,200 124 741 5,100 4,983 4,100 4,067 5,000 +10.1% +8.5% 4,900 4,000 4,800 3,900 4,700 3,800 B&M UK B&M France Heron FY23Category FY2331 Category FY23 FY24 1 B&M France (£m) Her
Slide 11: Transaction-led growth in B&M UK from LFL and new stores
Transaction-led growth in B&M UK from LFL and new stores LFL revenue growth 9.2% FY24 vs FY23 (1-year) • 3.7% LFL1 growth for the full year 3.1% 2.9% underpinned by increase in customer 0.6% transactions • LFL revenues grew in every quarter, Q1 Q2 Q3 Q4 against challenging comparatives in H2 Total r
Slide 12: Group gross margin
Group gross margin H1 vs H2 Group gross margin (%) Key Highlights 38.0% 37.5% 37.3% • B&M UK’s trading gross margin increased by 46 bps year- 36.9% on-year 37.0% • No markdowns on gardening in H1 (+110 bps versus last 36.5% year) 36.0% • Margin maintained in H2 35.5% • Favourable foreign exchange an
Slide 13: Adjusted EBITDA
Adjusted EBITDA Group (£m) B&M UK (£m) Highlights 640 629 570 556 620 550 600 573 530 • Group adjusted EBITDA1,2 margin of 11.5% reflects strong 580 510 503 operational performance and disciplined cost control 560 490 540 520 11.5% 11.5% 470 12.4% 12.6% 500 450 • B&M UK’s adjusted EBITDA1 outturn an
Slide 14: Adjusted operating costs as % of revenue
Adjusted operating costs as % of revenue Group1 B&M UK Highlights 26.0% 25.5% 25.4% 25.0% 24.3% 25.0% 24.5% 24.0% 24.0% 24.0% 23.5% 23.0% • Underlying costs2 as a % of revenue falling reflects cost 23.0% 22.5% leverage and productivity gains from sales volume 22.0% 22.0% £1,271m £1,384m 21.5% £990m
Slide 15: Revenue growth and operating model drives strong profit drop throughs
Revenue growth and operating model drives strong profit drop throughs B&M UK cost base illustrative overview (% of revenues ex-VAT) Key considerations 100% • Structurally higher sales densities underpin our profit margins Costs as a percentage of net revenues (%) Variable & semi-variable costs • Sal
Slide 16: Continued cash discipline, with maintained investment in our expansion
Continued cash discipline, with maintained investment in our expansion Cash flow overview (£m) Capex development (£m) FY24 FY23 New stores EBITDA (post-IFRS 16) 865 777 Infrastructure and freehold* 140 Maintenance 123 124 Change in working capital (8) 74 120 100 42 85 89 Other 5 17 81 59 Capex (£m)
Slide 17: Consistent delivery of profitable growth
Consistent delivery of profitable growth Revenue1 Adjusted EBITDA1,2 +16.8% 6 +14.2% 5.5 700 CAGR 626 619 629 5.0 Adjusted EBITDA (£m) 5 CAGR 4.8 4.8 600 573 500 Revenue (£bn) 4 3.8 3.3 400 342 3 2.8 320 2.3 273 1.9 300 223 2 181 200 1 100 0 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY16 FY17 F
Slide 18: Growth strategy
Growth strategy Alex Russo Chief Executive Officer
Slide 19: B&M UK: Pipeline progress
B&M UK: Pipeline progress Key highlights Map of B&M UK stores per capita, April 2024 47 gross new stores opened Expect 45 gross new stores in in FY24 (including 5 FY25 - concentrating on good relocations) which added 16 quality locations 21 ex-Wilko new garden centres stores opened in Q4 The acquisi
Slide 20: B&M UK: Pipeline progress
B&M UK: Pipeline progress B&M Harrow (ex-Wilko) – opened Feb 2024 B&M Monks Cross (non-Wilko) – opened Oct 2023 High quality selling space and location (32,400 sq. ft). High quality selling space and location (30,000 sq. ft Sizeable car park including garden centre). Sizeable car park Great sales de
Slide 21: B&M UK: FMCG & General Merchandise highlights
B&M UK: FMCG & General Merchandise highlights FMCG General Merchandise • Our price position remains consistently strong against all the • ‘SIMPLY’ ranges have extended across more categories competition – introducing more opening price point products • Supplier collaboration is very strong in drivin
Slide 22: B&M UK: Store operations
B&M UK: Store operations • Relentless focus on store standards to ensure we deliver the best Progress made experience for all our customers every day • Driving strong and consistent in-store availability across all stores • We keep things simple and reduce complexity which increases • 350+ weekly cu
Slide 23: B&M UK: Supply chain update
B&M UK: Supply chain update Overview • Step-on in working practices Compliance • “5 Cs” programme making progress in all areas • >50% fall y-o-y in RIDDORs and incidents • Improved alignment with retail and buying • Increased stock accuracy y-o-y driving availability Customer • On Time Store Deliver
Slide 24: B&M France: Proposition highlights
B&M France: Proposition highlights Category Strategy Category Mix Evolution • Grocery department is performing exceptionally well: ‐ Introduction of new SKUs ‐ New supplier partnerships with leading brands such as L’Oreal, Nestlé, P&G, Kellogg’s and Mars ‐ Price position is key to being recognised a
Slide 25: B&M France: Operational standards
B&M France: Operational standards Balance of own Increase of product Store standards is a key Product ranging evolving Introduction of Warehouse Ongoing transfer of skills operated and mandate availability in DC and in focus (people, store to match best Management System in from B&M UK to assist wit
Slide 26: B&M France: Growth
30 September 2009 B&M France: Growth FY24 Openings Persan St Ouen Herblay • 11 store openings in FY24, with a shift in size of stores Pontault Lanester towards 2,000m2: Ste Ge Servon • 6 around 2,500m2: Herblay, Portes, Agen, Ste Geneviève, Persan, Pontault • 4 stores at c. 2,000m2: Lanester, Servon
Slide 27: Summary
Summary Continued tough economic environment We continue to deliver strong operational execution every day New store pipeline is robust with gross new openings in FY25 expected to be not less than 45 B&M UK stores, 20 Heron Foods stores and 10 B&M France stores The business will maintain a high degr
Slide 28: Q&A
Q&A
B&M European Value Retail — FY2024 Earnings Presentation on 6ix