BMRPF - B&M European Value Retail S.A. (BMRRY) Q4 2024 Earnings Call Transcript
2024-06-08 13:05:08 ET
B&M European Value Retail S.A. (BMRRY)
Q4 2024 Earnings Conference Call
June 05, 2024, 04:30 AM ET
Company Participants
Alejandro Russo - CEO
Mike Schmidt - CFO
Gareth Bilton - UK Stores Director
Jon Parry - UK Supply Chain Director
Anthony Giron - France Managing Director
Simon Buckley - Head of Merchandising
Conference Call Participants
Jonathan Pritchard - Peel Hunt
Richard Chamberlain - RBC Capital Markets
James Anstead - Barclays
Warwick Okines - BNP Paribas Exane
Sreedhar Mahamkali - UBS
Ben Hunt - Investec
Andrew Wade - Jefferies
Izabel Dobreva - Morgan Stanley
Presentation
Alejandro Russo
Good morning, everyone. Thank you for coming. And good morning in U.S. I know you are early in different cities, East and West Coast. So thank you for joining us.
We have a full lineup today. Mike, Gareth has presented in the past, Jon Parry, Anthony Giron in France. What I'm going to do today is keep it very short for myself. So you get to hear the team basically what the business -- how the business is set up for the year ahead and thereafter. And with a bit of luck on guidance, if we can keep it sharp, we can give a good half an hour for Q&A, so we can get into the detail.
I take the RNAs as a given. So I will just make a couple of points on each slide. So you've seen the numbers. Looking back at FY '24, for me, there are two highlights in here. We're a financially conservative business. We are not a business that believes in high gearing. We're disciplined, conservative financial business and actually having a leverage ratio just under 1.2x for me is absolutely the right shape in the business.
So I'm happy with that result. What's underneath that, if you look at the detail, broadly speaking, we have put £500 million year-on-year on net sales. And total stockholding has barely moved year-on-year.
From memory, I think it's increased year-on-year £11 million, which is nothing. So we've put £0.5 billion of net revenues with broadly stockholding flat. And that's on the back of last financial year, where the stockholding was also flat pounds. What does that tell me as a CEO. The supply chain is incredibly robust and efficient.
We don't have to take any unnecessary risks. The quality of those earnings given the quality of the stock is in excellent shape. Look forward, the quality of your stock is always your margin tomorrow. So that gives us a very good momentum heading into New Year with having razor sharp stock but the best availability the business has had on shelf since I've been in the business since 2020.
Okay. Go back four years, we have delivered £1.8 billion check to shareholders cumulatively over four years, £1.8 billion. This is a disciplined business but it's all around sustainable profitable growth, which is cash generating back to the shareholders. So those are for me the two highlights of FY '24.
You've seen this chart before. The blue line is interesting. But you've heard me before, I'm not in the business of driving market share. I'm in the business of driving sales growth, which are profitable and sustainable. So I always look at the orange line....
B&M European Value Retail S.A. (BMRRY) Q4 2024 Earnings Call Transcript