BMTC sees 26% sales hike for last fiscal year
MONTREAL – In what has become a familiar refrain among publicly held retailers in this country, BMTC Group, the largest furniture, mattress and appliance retailer in Quebec, recorded record high revenues and earnings for its latest fiscal year, which ended on January 31, 2022. The company admits this was achieved because of the government support provided during the pandemic as well as an uptick in e-commerce.
For the three months ending January 31, 2022, BMTC rang-up revenues of $196.7 million, compared to $178.3 million for the comparable period a year ago – an increase of 10.3%.
Net earnings were $22.6 million or 67 cents per share, down from the prior period’s $26.9 million or 79 cents per share – a 15.2% drop on a per share basis.
The company’s ongoing ‘normal course issuer bid’ added one cent per share to earnings in the fourth quarter, while an after-tax Canadian Emergency Wage Subsidy (CEWS) contribution of $1.9 million added another six cents per share.
For the fiscal year ending January 31, 2022, the revenue tallied $819.4 million, compared to $649.1 million for previous year - an increase of 26.3%.
Net earnings for the year amounted to $81.9 million or $2.43 per share, compared to $54.8 million or $1.61 per share – an uptick of 50.9% on a per share basis.
In their report to shareholders, management noted the share repurchase program contributed two cents per share to earnings while after-tax contributions of $5.8 million added another 17 cents per share.
“The company was able to increase significantly it's revenues during the year ended January 31, 2022, compared to results during the corresponding 2021 period as well as the corresponding 2020 and 2019 periods. In fact, the company recorded one of the highest revenues in its history,” management said. “This is partly due to improvements in marketing and strategic measures implemented, our extensive store network and the strength of digital platforms, which have enabled the company to increase its market share in Quebec.”
Unlike Leon’s Furniture Limited, Sleep Country Canada Holdings and IKEA Canada – who, along with BMTC account for 60% of all furniture store sales in this country’s – BMTC offered little insight into the strength of its e-commerce operations, although management describes it as “essential,” telling shareholders this part of the business has “experienced a record increase since the start of the pandemic.”
All three of BMTC’s banners – Brault & Martineau, EconoMax and Ameublements Tanguay – operate digital platforms.
“It is also management’s opinion that the digital platforms of our banners are essential in order to allow the company to increase its market shares as well as to allow customers to start their shopping experience online to then complete their purchases in one of our stores with the help of our sales representatives,” the company said in a statement.
Looking ahead, management told shareholders the company’s performance in its last fiscal year is unlikely to be repeated, considering current economic conditions in this country.
“It is difficult to predict the future level of consumer spending, although it is quite possible that the company’s future results may not reflect the performance of the last two years,” they said. “The high level of inflation combined with gas prices will have an impact on consumer spending.
“Also, management is aware that the increase in the last two years was partly due to the fact that the company benefited from a transfer of consumer spending related to the restrictions imposed by the various levels of government due to COVID-19 pandemic,” they continued, adding, “more precisely the restrictions related to travel, the closure of restaurants and all other forms of entertainment in the cultural and sporting world. Since these restrictions are no longer in place, we expect consumer spending could transfer back to these types of spending.”