B&M Bargains owner B&M European Value Retail (BME) has reported a 21.3% jump in first quarter group revenue, driven by new store openings, international growth and a small rise in organic sales.
For the three months to 30 June group revenues rose from £656.3m to £796.3m.
B&M UK sales revenue for the 13 week period increased by 8.3% to £648.3m, with like-for-like sales growth of 1.6% in the quarter.
This like for like growth represents a slowdown from the 7.3% organic growth it saw in the corresponding period last year. Stripping out the non-comparable Easter week in the prior year like for like sales were up 3.6% on an underlying basis.
Just four new B&M UK stores opened in the quarter (including one relocation), reflecting the phasing of the new store opening programme being weighted towards the second half of the financial year.
B&M said it remains on track to open at least 45 net new B&M stores in the second half and to open between 15 and 20 Heron Foods stores and 10 Jawoll stores in the financial year
Its convenience store chain, Heron Foods, contributed £86.1m of revenue in the quarter including a strong like-for-like revenue growth, with the improved ambient ranges in particular “performing well”.
Its German chain Jawoll posted revenue growth of 7% in the quarter driven by the gardening category. B&M said it is continuing to clear older stock as planned ahead of introducing a greater mix of product sourced from B&M’s Far East supply chain for Autumn 2018.
CEO Simon Arora commented: “The business has performed strongly in the quarter despite demanding comparables of 7% LFL’s in the previous year and a sluggish market environment.
“Our competitively priced ranges for Garden and Outdoor Leisure have been very well received and they are achieving great rates of sell-through. We have enjoyed record sales in these seasonal product categories, which is a testament to the appeal of our highly disruptive business model. I would like to thank all our colleagues for their hard work and success in delivering B&M’s best ever Q1 early Summer Trading season.”
B&M’s shares have edged up 0.2% to 415.3p so far this morning.
Homewares retailer Dunelm Group has posted a trading update for 13-week period, and financial year, ended 30 June 2018.
Total like-for-like revenues in the quarter were broadly flat year on year (0.1% increase), driven by 41.8% growth online while footfall in physical shops was weak in the quarter, leading to a 4.6% decline in sales in LFL stores.
Overall revenue for the quarter showed a 1.4% decline year on year. Whilst the company said it benefited from the strong store opening programme earlier in the financial year, this was offset by decisions to rationalise the offer of its acquired businesses of Worldstores.co.uk and Kiddicare.com - having divested Achica.com during the previous quarter.
For the year as a whole, the Group delivered LFL revenue growth of 4.2% and overall growth of 9.9%.
On the markets this morning, the FTSE 100 has recovered 0.2% back to 7,603pts after yesterday’s falls.
Yesterday in the City
The FTSE 100 plunged 1.3% yesterday back to 7,591.9pts as fears mounted over the escalating trade war between the US and China.
The Ocado (OCDO) shareprice rollercoaster continued yesterday, this time falling back 5.1% to 1,046.5p after a 9% surge following its first half results on Tuesday.
Most grocery stocks were in the red yesterday, including Majestic Wine (WINE), down 4.3% to 450p, McBride (MCB), down 2.9% to 125.6p, Premier Foods (PFD), down 2.5% to 45p and McColl’s (MCLS), down 2.1% to 209p.
Other fallers included Greggs (GRG), down 5.1% to 1,046.5p, Dairy Crest (DCG), down 1.4% to 466.4p, British American Tobacco (BATS), down 1.3% to 3,880p and Associated British Foods (ABF), down 1% to 2,485p.
Sainsbury’s was down 0.3% to 328.5p on the day of its AGM and the announcement of its new chairman.