Discount retailer B&M has reported growing sales amid the UK’s cost-of-living squeeze and said it was “well positioned” to benefit from consumers trading down as they look to save money.
In the six months to 24 September 2022 the company reported a 1.8% increase in revenue to £2.31bn, with Q2 sales rising by 6.3% compared to a 2.3% decline in Q1. This momentum in sales has continued into Q3, B&M said.
Core earnings for the half-year stood at £232m, down 17.9%, with the company’s strong performance during the pandemic affecting year-on-year comparisons.
“Sales momentum is good as we enter a difficult period for the economy and consumers,” said chief executive Alex Russo.
“Our value-based approach is winning with existing and new customers, and we will do our very best to help them weather the cost-of-living crisis.”
Like-for-like sales at B&M UK in the first six weeks of the current quarter are up 2.5%.
“This represents a significant increase in total sales over pre-Covid levels, and is against a backdrop of rising interest rates, increased cost inflation and declining consumer confidence,” Russo said.
B&M maintained its previous earnings guidance of £550m to £600m for the full year, which would be significantly ahead of its pre-pandemic level of £342m.
