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Highlights

  • In FY24, BME’s total group revenue and group statutory operating profit surged by around 10% and 13.4%, respectively
  • In Q1 FY25, the B&M UK segment had decent growth in new store openings, launching 19 gross stores and targeting a total of 45 for the year
  • By the end of FY25, the company plans to pursue substantial expansions in France and Heron segments

B&M European Value Retail SA (LSE: BME), is a prominent retail corporation specializing in variety retailing across the United Kingdom and France. The company operates through three distinct segments: B&M in the UK, Heron in the UK, and Bobou in France, collectively managing a network of 707 stores. The company is listed on the FTSE 100 index and has a market cap of GBP 4601.50mn.

In FY24, BME’s total group revenue surged by around 10% compared to FY23 and stood at GBP 5,484 million. The surge was driven by volume growth and positive like-for-like performance across the three business segments. Similarly, group statutory operating profit surged by 13.4%. It was due to improved purchasing prices and a favorable product mix. Further, improved store execution also led to higher sales of margin-boosting products without raising store expenses.

Recent business update

As per the company’s Q1 FY25 trading update, the group's revenue grew by 2.4%, driven by higher volume and a systematic strategy for launching new stores across its three business segments. The B&M UK segment experienced robust and profitable growth in new store openings, launching 19 gross stores in Q1 and targeting a total of 45 for the year. All stores opened since the previous year have surpassed expectations, the company said.

In Q1FY25, France inaugurated 2 new stores and is on track to open an additional 11 stores by year-end, maintaining its planned schedule.

Company outlook

Looking ahead to Q2FY25, BME has launched over 500 new products across essential categories such as home goods, electronics, and pet care under its Everyday Value range in both the UK and France. As the company prepares for the Autumn/Winter season, its steadfast commitment to Everyday Low Price and Everyday Low Cost will continue to ensure customer satisfaction. By the end of FY25, the company plans to open approximately 45 new B&M stores in the UK, while also pursuing substantial expansions in France and Heron segments.

Top 10 shareholders

The top 10 shareholders together hold approximately 44.27% of the total shares. Capital Research Global Investors leads with the highest shareholding at around 9.19%, followed by Fidelity Management & Research Company LLC with approximately 6.75%, as illustrated in the chart provided.

Stock performance

The stock price of BME has fallen by approximately 1.60% over the past month, while over the last six months, it has experienced a decline of around 11.93%. The stock's 52-week range spans from a low of GBX 431.80 to a high of GBX 595.43. Currently, it is trading below the midpoint of this range.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 19 July 2024. The reference data in this report has been partly sourced from REFINITIV.