Luxembourg-based general goods store B&M European Value Retail S.A. (LON:BME) saw its shares rally on Tuesday as it published results from its impressive first-half period.
The company boasted 25.3% revenue growth, led by 29.5% revenue growth in its UK stores and like-for-like growth of 23.0%. The company attributed this to elevated average spend per visit, and its variety and value of products on offer.
The company added that it expects first half EBITDA to be above the guidance range of £250 million to £270 million, at £285 million.
Other positive news included the opening of nine new B&M UK stores, which after closures brings the number up by one. Similarly, the company said it expects to open 40 to 45 new stores in the UK, most of which will be in the fourth quarter.
B&M European continued, stating that its Heron Foods convenience store chain, had enjoyed like-for-like sales growth, alongside six net new store openings.
It added that its Babou stores in France reopened on 11 May 2020, with H1 revenue standing at €156.8 million and a ‘small positive’ EBITDA outturn. Overall, it said 37 stores were trading under the B&M brand at the end of H1.
Speaking on the results, Chief Executive, Simon Arora, comments:
“Our Group has performed well in the first half. Our business model is proving well-attuned to the evolving needs of customers, given our combination of everyday value across a broad range of product categories being sold at convenient out-of-town locations.
Our people have risen to the many challenges posed by the COVID-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned. I thank them all for their commitment, hard work and resilience.”
Following the update, the company’s shares rallied 4.76% or 23.32p, to 513.72p apiece 29/09/20 11:30 BST. Analysts also have a majority ‘Buy’ rating on B&M European stock, a consensus target price of 452.62p, and with Marketbeat‘s community offering a majority ‘Outperform’ stance on the company. The Group also has a p/e ratio of 25.15.