A FTSE 100 hidden gem?
B&M European Value Retail S.A. Demonstrates Steady Revenue Growth
Dear Reader,
Let's take a closer look at one stock that is showing good growth on the FTSE 100, with the share price trading near year lows. Their most recent results show:
B&M European Value Retail S.A., a prominent variety retailer, reported a steady increase in revenue for the first quarter of the financial year, despite challenging market conditions. The company recorded a 2.4% rise in group revenues, reaching £1,345 million, driven by disciplined store openings and efficient stock management across its UK and French operations.
Revenue Performance
B&M UK: Revenues rose to £1,080 million, a 1.5% increase from the previous year.
B&M France: Revenues reached £126 million, showing a 7.5% growth, and 9.6% when measured in local currency.
Heron Foods: Revenues were £139 million, reflecting a 2.7% increase.
Store Expansion and Operational Highlights
B&M UK: Opened 19 new stores in Q1, on track to achieve 45 new store openings for the year. All new stores are performing ahead of expectations.
B&M France: Added 2 new stores in Q1 and remains on schedule to open 11 stores by the end of the year.
Seasonal Stock Management
Gardening Sector: High sell-through rates achieved with no markdown risk for Spring/Summer stock.
UK Gross Margin: Performance in line with expectations due to strategic stock management.
Market Position and Product Range
B&M launched its "Everyday Value" range, adding over 500 new lines across home, electrical, and pet categories in both the UK and France. This initiative aims to enhance the value offered to customers.
Logistics and Supply Chain
UK Logistics: Network configuration strengthened over the past two years to support volume growth.
France Logistics: Additional capacity underway to support expanding operations.
Financial Outlook
B&M projects continued profitable growth for the full financial year, supported by strong fundamentals and normalising comparatives. The company will release its half-year financial results for the 26 weeks ending 28 September 2024 on 14 November 2024, offering further guidance for the full year.
CEO Commentary
Alex Russo, Chief Executive, stated: "The growth fundamentals of our business are strong, with a highly disciplined approach on pricing, product, and operational standards. We continue to offer our customers value at a time when household incomes are under pressure. Ahead of Q2, we have launched our Everyday Value range with more than 500 new lines in core categories across home, electrical, and pet in the UK and France. As we transition towards Autumn/Winter in the months ahead, our focus on Everyday Low Price and Everyday Low Cost will ensure we continue to serve our customers well."
B&M's performance in the first quarter underscores its ability to navigate economic challenges while maintaining steady growth, making it a noteworthy consideration for UK investors.
B&M key financial ratios:
This is one stock to keep your eye!
Ollz