B&M European Value Retail SA (LON:BME), the UK’s leading variety goods value retailer, has provided a trading update relating to its Fourth Quarter performance to date for the financial year ending 27 March 2021.
On 7 January 2021, the Group announced strong revenue growth in its Third Quarter. It also noted the uncertainties relating to lockdown restrictions in the UK.
Notwithstanding this backdrop, revenues and margins have remained strong over Q4 to date, particularly in the Group’s B&M fascia business in the UK. Accordingly, the Group now expects adjusted EBITDA1 (on a pre-IFRS 16 basis) for FY21 to be in the range of £590m to £620m, stated after the voluntary payment of business rates amounting to approximately £80m. This compares to the previous range announced on 7 January 2021 of £540m to £570m.
Group sales will shortly annualise against the elevated sales, driven initially by consumer stockpiling in mid-March 2020, and which continued throughout FY21 due to the ongoing impacts of Covid-19. This, together with the unknown impact of changes to restrictions in 2021, creates significant forecasting challenges which will persist well into the new financial year.
The safety of the B&M European Value Retail’s colleagues and customers remains the key priority, whilst working hard to continue to meet customers’ needs. B&M also re-introduced the colleague discount for all NHS workers throughout January 2021.
1. The Directors consider adjusted EBITDA figures to be more reflective of the underlying business performance of the Group and believe that this measure provides additional useful information for investors on the Group’s performance. Adjusting items are the effects of derivatives, one off refinancing fees, foreign exchange on the translation of intercompany balances and the effects of revaluing or unwinding balances related to the acquisition of subsidiaries.