B&M European Value Retail S.A. (LON:BME), the high street value retailer, has reported solid Christmas trading and said it remains on track to meet full year expectations.
In a trading update for the 13 week period from 24 September 2017 to 23 December 2017, the FTSE 250-listed firm said group sales revenue grew by 22.7 % at constant currency to £969.8mln, up from £789.1mln for the same period the year before, with "continued strong sales and operational performance" during its peak trading period.
B&M’s UK like-for-like revenues grew by 3.9%, down from 7.2% the year before reflecting the impact of the group's store opening programme.
For the year to December 23, the retailer’s total revenue increased to £2.32bn from £1.90bn the year before, with UK like-for-like sales growth at 6.0% compared to 3.1% a year earlier.
B&M said: “Management is confident that the Group will meet market expectations for EBITDA for the current financial year.”
Boss delighted with progress
Simon Arora, the group’s chief executive, said: "B&M continues to go from strength to strength. Despite the demanding comparatives from the very strong Christmas in 2016, our buying, supply chain and retail teams achieved another outstanding performance this year by doing what we do best, which is delivering great value for customers week-in, week-out. “
He added: “With Heron also performing well and Jawoll having a solid quarter, I'm delighted with our progress”.
In a note to client’s analysts at Liberum Capital said: “We expect organic growth combined with the ongoing store roll-out to support long-term double-digit growth across the UK and in Germany.”
They added: “B&M offers exposure to a self-funded, integrated, high growth and cash generative business, which is one of the highest quality names in UK retail.”
Liberum reiterated a ‘buy’ rating and a 475p price target on the stock.
In mid morning trading, B&M shares were 2.6%, or 10.2p higher at 407.1p.