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B&M European Value Retail SA on Thursday backed annual guidance but reported a first-half revenue fall from its UK business.
The retailer reported pretax profit in the six months to September 24 fell 17% to £201 million from £241 million a year ago. Revenue grew 1.8% to £2.31 billion from £2.27 billion.
Revenue from UK B&M fell by 0.9% to £1.89 billion from £1.91 billion, while revenue in France rose 18% to £184 million from £155 million. Heron Foods revenue increased 15% to £233 million from £203 million.
Adjusted earnings before, interest, tax, depreciation and amortisation fell by 18% to £232 million from £282 million
B&M plans to open three new stores in France during the current financial year to March, as well as 10 to 12 new UK stores and eight Heron Foods stores.
B&M European declared an unchanged interim dividend of 5.0 pence per share.
For the financial year 2023 ending March 25, B&M expects a further fall in adjusted Ebitda to between £550 million and £600 million, in line with previous guidance but down at least 3.1% from £619 million a year ago.
"We are well positioned as we trade through the golden quarter and our strategy remains unchanged - a relentless focus on price and product," said Chief Executive Officer Alex Russo.
B&M said trading has been good in the early stage of the "golden quarter", which contains the key Christmas trading period. Like-for-like sales in UK stores are 2.5% higher over the first six weeks of the key period.
B&M shares fell 5.9% to 351.90 pence each in London on Thursday morning.
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