B&M (BME) Share Price Rose 2.1% on Its Q3 Fiscal 2024 Results

The B&M European Value Retail SA (LON: BME) share price rose 2.1% after releasing a trading update for the third quarter of its 2024 fiscal year covering the 13 weeks from 24 September 2023 to 23 December 2023. 

The group witnessed a robust 5.0% year-on-year (YoY) growth in revenue for the quarter, amounting to £1,645 million. Furthermore, the year-to-date growth for Q3 reached 8.1% YoY, totalling £4,194 million on a constant currency basis.

During the 14 weeks ending on 30 December 2023, B&M UK demonstrated a 1.2% like-for-like revenue growth. This performance is particularly noteworthy considering the challenging comparatives from the prior year. The positive revenue growth was attributed to an increase in transaction numbers.

The quarter showcased exceptional performance in general merchandise volume, resulting in robust sales participation and high sell-through. Notably, the Group ended the quarter with a clean inventory position that remained flat YoY, reflecting efficient management of stock levels.

In line with its expansion strategy, the group is making strides towards opening 76 gross new stores across its entities in FY24. Among these, 45 will be in B&M UK, 11 in B&M France, and 20 in Heron Foods.

Remaining consistent with the Group's capital allocation framework, the Board declared a special dividend of 20.0p per Ordinary Share. The positive financial performance, strategic expansions and a commitment to shareholder value position the group favourably in the retail landscape.

Alex Russo, B&M’s Chief Executive, said: “The performance across the Golden Quarter has been pleasing, with strong operational execution across the three businesses. Our strategy remains unchanged – we are an everyday low-price discounter with a laser focus on keeping excellence in retail standards and our costs the lowest. This allows us to provide our products at the best price to all customers – many of whom continue to face significant cost-of-living pressures. We are well-positioned for the year ahead, and we reiterate our guidance for Group adjusted EBITDA (pre-IFRS 16) within our target range of £620m – £630m for FY24 (FY23: £573m).”

B&M European Value Retail (BME) share price. 

The B&M European Value Retail (BME) share price rose 2.09% to trade at 572.50p from Monday’s closing price of 560.80p.