Discount Variety Retail Chain B&M has increased its full-year profit outlook after posting a strong uplift in first-half sales and profit.
In the 26 weeks to 23 September, group revenue climbed by 10.4% to £2.549 billion while group adjusted EBITDA rose to £269 million from £232 million a year earlier.
The group said all of its divisions traded well in the period with B&M UK increasing its sales by 8.1% and Heron Foods by 17%.
Meanwhile, sales at the B&M fascia in France surged by 26.1%. B&M opened 28 gross new stores across the group, including 13 for B&M UK, 10 for Heron Foods, and five for B&M France. It is planning to launch 125 B&M stores in the UK over the next three years which means it is now aiming for a total of 1,200 sites compared to a previous target of 950.
Giving an update on more recent trading, the group said the first six weeks of the Golden Quarter had seen B&M UK’s like-for-like sales grow by 1.6%. It now expects its full year adjusted EBITDA to be in the range of £620 million to £630 million. This compares to £573 million in the prior year.
Alex Russo, chief executive of B&M, said: “I am delighted that many of our existing shareholders have been with us since our IPO and continue to see our long-term growth potential.
“With our new store number guidance (of not less than 1,200 B&M UK stores) and continued LFL growth, we have the runway to at least double our size in the UK in the medium term, while France also offers sizeable long-term potential.”
