B&M reports increased profits for the six months ending 28 September, demonstrating strong performance.
- The retailer’s sales saw a 3.7% increase, reaching £2.6 million driven by volume growth.
- Despite a slight drop in adjusted operating profit due to increased costs, B&M opened 39 new stores.
- Future growth is supported by a new UK imports centre set to open in FY26.
- The company remains optimistic about meeting its full-year EBITDA target, projecting between £620m and £660m.
B&M European Value Retail has showcased resilience and adaptability in its latest financial results. For the six months ending 28 September, the company reported a commendable rise in profits, aligning well with its strategic positioning for the upcoming Golden Quarter. Specifically, the retailer experienced a 3.7% increase in sales, which now stand at £2.6 million, highlighting significant volume growth. UK revenues also showed robust figures, reaching £2.1 million in the same period.
However, the broader financial landscape presents a nuanced picture. While the group EBITDA saw a modest gain of 2% to £274 million, there was a slight dip in group adjusted operating profit, declining by 1.8% to £258 million. This reduction is primarily attributed to the higher operational costs the company faced, largely due to an increase in store numbers and substantial investments in enhancing its supply chain in France. Notwithstanding these challenges, B&M remains committed to its growth trajectory.
The retailer’s strategic initiatives are evident in its expansion efforts. During the reported half-year, B&M inaugurated 39 new stores – 30 of which are located in the UK, five in France, and four under the Heron Foods brand. The company’s forward-looking strategies include the establishment of a new UK imports centre by FY26, a move intended to bolster the capacity of its existing distribution centres and sustain future volume growth.
CEO Alex Russo expressed confidence in B&M’s robust performance, emphasising their commitment to low-price integrity and operational excellence. “This is a good performance,” he asserted, acknowledging the strength of consecutive years of earnings growth. Russo highlighted their disciplined and low-cost approach as pivotal to simple, sustainable growth driven by the collective efforts of their teams.
Anticipation for the future remains high, with B&M projecting that its full-year group adjusted EBITDA will land between £620 million and £660 million. This outlook underscores the company’s optimism and strategic foresight, despite navigating through a challenging economic landscape.
B&M’s strategic position and resilient performance indicate a promising outlook for the Golden Quarter and beyond.
