B&M’s recent interim results indicate a positive trajectory as profits rise, aligning with expectations for a successful Golden Quarter.
- Sales increased by 3.7% reaching £2.6m, largely due to volume growth, pushing UK revenues to £2.1m.
- Despite external pressures, group EBITDA rose by 2% to £274m, reflecting operational resilience.
- Although adjusted operating profits dipped slightly by 1.8% to £258m, strategic investments are ongoing.
- B&M opened 39 new stores, enhancing its market presence and future profit potential.
In the latest financial report, B&M European Value Retail has announced a significant boost in profits for the first six months ending 28 September, reflecting a favourable position as the crucial Golden Quarter approaches. Profits rose, driven by a 3.7% increase in sales, amounting to £2.6 million, primarily due to volume growth. The company’s UK revenues also achieved a noteworthy £2.1 million during the period, bolstering its financial standing.
The group’s EBITDA saw a lift, climbing by 2% to reach £274 million. This improvement highlights the retailer’s ability to maintain a strong operational framework despite encountering increased costs from expanding their store network and investing in supply chain enhancements in France. However, the adjusted operating profit reflected a slight downturn, falling 1.8% to £258 million, attributed to these strategic expansions.
Looking to the future, B&M is set to open a new UK imports centre by fiscal year 2026. This strategic move is aimed at optimising the existing distribution capacities and ensuring sustained volume growth. Such initiatives underscore the company’s commitment to bolstering its infrastructure and operational capacities.
During this period, the retailer has aggressively expanded its footprint by inaugurating 39 new stores across the group. This includes 30 new locations in the UK, which form a crucial part of B&M’s growth strategy, alongside five in France and four more at Heron Foods. The successful opening of these stores has been pivotal in boosting B&M’s revenue and market presence.
Chief Executive Officer Alex Russo has expressed satisfaction with the company’s performance, particularly noting the impressive annualisation of prior earnings growth amid challenging market conditions. He emphasised, “We continue to execute with everyday low price integrity for all our customers, with industry leading availability and excellence in operational standards.” Russo stressed that their disciplined, low-cost approach across all business segments is key to achieving simple and sustainable growth.
B&M stands strong with strategic expansions and financial growth, well-prepared for the key shopping season ahead.
