B&m European Value Retail Plc · LSE:BME
B&m European Value Retail — FY23 Earnings Presentation
25 slides from B&m European Value Retail's earnings presentation, May 31, 2023
Slide 1: FY23 Preliminary Results Presentation
B&M European Value Retail S.A. FY23 Preliminary Results Presentation 52 weeks to 25 March 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: FY23 Group Highlights
FY23 Group Highlights Growth across all three businesses with Group revenues increasing by 6.6% in FY23 to £4,983m, which were 30.7% ahead of pre- pandemic FY20 levels Group adjusted EBITDA1 of £573m (11.5% of sales) towards the +6.6% £573m top-end of guidance range Group revenue Group adjusted grow
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 3,030 2,431 +10.5% 2,053 5 year CAGR 1,647 1,272 +15.5% 993 5 year CAGR 713 764 538 427 256 78 130 FY06 FY07 FY08 F
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: Summary Profit and Loss
Summary Profit and Loss £ millions, FY23 FY22 YoY Change FY20 3YoY Change Revenue 4,983 4,673 6.6% 3,813 30.7% Gross Profit 1,801 1,752 2.7% 1,283 40.4% % 36.1% 37.5% (137) bps 33.6% 248 bps Operating Costs (1,228) (1,133) 8.3% (941) 30.5% Pre-IFRS 16 Adjusted EBITDA 573 619 (7.4)% 342 67.4% % 11.5%
Slide 9: Revenue
Revenue Group (£m) B&M UK (£m) Group stores (number) 6,000 4,983 4,500 4,067 5,000 4,673 3,909 4,000 3,813 3,500 3,140 319 4,000 3,000 3,000 2,500 114 707 2,000 +9.3% 3 year 2,000 +9.0% 3 year 1,500 CAGR CAGR 1,000 1,000 500 0 0 B&M UK B&M France Heron FY20 Category 1 FY20 Category 1 FY22 FY23 FY22
Slide 10: B&M UK Fascia Sales
B&M UK Fascia Sales FY23 Sales LFL B&M UK Revenue Bridge (£m) H1 H2 4,250 4,067 3,909 -3.9% vs FY22 +5.1% vs FY22 94 51 5 11 4,000 29 6.4% 3,750 3.2% 2.0% 3,500 3,250 FY23 vs FY22 (1-year) -9.1% Q1 Q2 Q3 Q4 10
Slide 11: Group Gross Margin
Group Gross Margin H1 vs H2 Group Gross Margin (%) Key Highlights 38.0% • Reduction of B&M UK’s trading gross margin by 148 bps year-on- 37.1% 37.0% year • Primarily due to markdowns on gardening in H1 – (213) bps 36.0% versus last year 35.0% 35.0% • Marked improvement in H2 versus H1 – (92) bps ver
Slide 12: Adjusted EBITDA
Adjusted EBITDA Group (£m) B&M UK (£m) Highlights 700 600 564 619 502 573 600 500 500 400 320 • Group adjusted EBITDA1 margin of 11.5% reflects strong 342 400 300 operational performance and disciplined cost control 300 10.2% 12.4% 200 200 9.0% 13.2% 11.5% 14.4% 100 100 • B&M UK’s adjusted EBITDA no
Slide 13: Operating Costs as % of Revenue by Fascia
Operating Costs as % of Revenue by Fascia Group B&M UK Key Highlights 25.0% 24.8% 24.6% 25.0% 24.5% 24.3% 24.5% 24.0% 24.0% 23.4% 23.4% 23.5% 23.5% 23.0% 23.0% 23.0% • Holding costs in percentage terms 22.5% 22.5% 22.0% £947m £1,133m £1,227m 22.0% £734m £899m £950m 21.5% 21.0% 21.5% 21.0% • In Franc
Slide 14: Cash Flow Generation Remains Strong
Cash Flow Generation Remains Strong Operating Cash Flow (£m) Commentary FY23 FY22 • Working capital inflow of £66m driven by clean inventory position Adjusted EBITDA (pre-IFRS 16) 573 619 • New store Capex of £33m spent on opening 42 gross new stores across the Change in Working Capital 66 (231) Gro
Slide 15: Growth Strategy
Growth Strategy Alex Russo Chief Executive Officer
Slide 16: B&M UK: Grocery & Non-Grocery Highlights
B&M UK: Grocery & Non-Grocery Highlights Grocery Non-Grocery • Our price position remains consistently strong against the • Direct sourcing model and strong supplier relationships competition maintain great product availability across our core • Price basket of c.500 items established and monitored
Slide 17: B&M UK: Store Standards
B&M UK: Store Standards • Razor sharp focus on our retail standards through a cultural Progress To Date reset led from the top • Driving strong in-store availability • 180+ weekly customer visits outside of the regional teams • Consistent execution of our events calendar • Significant improvement se
Slide 18: B&M UK: Supply Chain
B&M UK: Supply Chain B&M Supply Chain - Serving our customers better than anyone else COMPLIANCE CUSTOMER COST CAPACITY CULTURE By being SAFE & Providing a Seamless Providing the lowest Creating the All through the most LEGAL in everything CUSTOMER possible COST CAPACITY to ENGAGED and we do EXPERIE
Slide 19: B&M UK: Pipeline Progress
B&M UK: Pipeline Progress Key highlights FY23 relocated stores analysis Expect approximately 30 21 gross new stores opened in Closed Stores +193% gross new stores (including FY23 (including 5 relocations) increase relocations) in FY24, which added 12 new garden in space New Relocated concentrating o
Slide 20: B&M France: Proposition Highlights
B&M France: Proposition Highlights Category Mix Evolution Category Strategy • Grocery department is performing exceptionally well thanks to introduction of new SKUs density & new supplier partnerships with leading brands such as L’Oreal, Nestlé and Mars. • Non-grocery departments benefits from growi
Slide 21: B&M France: Operational Standards
B&M France: Operational Standards Gradual increase in the Focus remains on the Priority is to continue to Product ranging and Transport and distribution Ongoing transfer of skills number of company availability of best sellers, improve store standards store flow evolved productivity levels from B&M
Slide 22: B&M France: Growth
B&M France: Growth FY23 Openings • 7 new store openings, 6 on 2,000-3,000 sqm format, 1 on 1,500- 2,000sqm concept • Alsace Region (Hagueneau) • Rhones Alpes Region (Saint Bonnet and Annecy) • Central Region (Moulins) • Normandie Region (Flins) • Grand Est Region (Cormontreuil and Chalon) • All 7 ne
Slide 23: Heron Foods: A Hugely Successful Year
Heron Foods: A Hugely Successful Year Highlights • Delivered a strong performance with 18.1% total sales growth year on year • Like-for-like performance demonstrates the business is winning new customers • All three chambers have seen positive sales growth, with Ambient leading the way overall • Sta
Slide 24: Current Trading and FY24 Outlook
Current Trading and FY24 Outlook • Over the first 9 weeks of FY24, B&M UK LFL sales have run at 8.3%, with continued positive transaction numbers since last summer • France & Heron Foods continue their trading momentum • New store pipelines remain robust with gross new openings in FY24 expected to b
Slide 25: Q&A
Q&A
B&M European Value Retail — FY23 Earnings Presentation on 6ix