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Highlights:
- Revenue Growth: Group Q3 revenue rose by 2.8% year-on-year, with positive LFL growth in December and strong momentum continuing into January.
- Store Expansion: On track to open 73 new stores in FY25 across the Group, including 45 in the UK and 11 in France.
- Special Dividend Declared: A 15.0p per share special dividend, totaling £151 million, will be paid to shareholders in February 2025.
B&M European Value Retail S.A. (LSE:BME), the UK’s leading variety goods value retailer, has announced its trading update for the third quarter (Q3) of FY25, covering the 13 weeks from 29 September to 28 December 2024. The Group delivered consistent revenue growth despite a challenging retail environment, underscoring its strong customer appeal and operational efficiency.
Group revenue for the year-to-date (YTD) grew by 3.5% on a constant currency basis, with Q3 revenue growth of 2.8% year-on-year. The Group’s performance reflects resilience across its UK and French operations, alongside solid seasonal product sell-through and margin improvements.
UK Performance
B&M’s UK business recorded total revenue growth of 2.8% for Q3, with like-for-like (LFL) revenue declining by 2.8%. However, December showed a notable turnaround with positive LFL growth, driven by strong customer demand for newly launched ranges. The positive LFL momentum continued into January, reflecting robust market acceptance of B&M’s seasonal transition.
Both FMCG and general merchandise categories performed strongly, with excellent sell-through in seasonal ranges such as confectionery, toys, and Christmas home goods. These categories posted positive volume and LFL growth during December. Gross margins and profits were strong in Q3, supported by effective inventory management and a clean exit position as the company transitioned to its January seasonal stock.
The UK store expansion program remains on track, with 45 new stores expected to open by the end of FY25. An additional 45 openings are planned for FY26, reinforcing B&M’s commitment to enhancing its footprint and customer accessibility.
French Operations
B&M France delivered an exceptional quarter, with total revenue growth of 12.5% and LFL revenue growth of 3.8%. The strong performance reflects the brand’s growing presence and effective execution in the French market. Eleven new stores are expected to open in FY25, contributing to the Group’s broader expansion strategy.
Heron Foods and Future Plans
The Group’s Heron Foods division is set to add 17 new stores by the end of FY25. This expansion complements the Group's broader growth strategy and highlights its focus on catering to a wide range of customer needs.
In line with its ongoing review of its corporate domicile, B&M has identified Jersey and Ireland as potential new locations for its parent company. Discussions with regulators and relevant authorities are underway, with a decision expected in due course. Regardless of the outcome, B&M plans to retain its London Stock Exchange listing.
Shareholder Returns
B&M continues to deliver industry-leading returns on capital, exceeding 30%, which supports its robust cash generation. Reflecting its strong financial position, the Board has declared a special dividend of 15.0p per ordinary share (equivalent to £151 million), payable on 14 February 2025 to shareholders on the register as of 17 January 2025. The company has indicated that additional capital returns will be finalized once the redomicile process is complete.
Outlook
With its FY25 store opening program on track and a well-positioned product portfolio, B&M remains confident in its ability to deliver continued growth.
