B&M posts increased revenue as profit declines
B&M has posted a 4.6% uplift in annual revenue to £4.9 billion after focusing on delivering growth through its existing stores.
However, adjusted EBITDA fell by 7.4% to £573 million in the 12 months to 25 March following higher costs across the business. On a statutory basis, pre-tax profit declined to £436 million from a previous £525 million,
Meanwhile total B&M fascia revenue increased by 4% to £4.067 billion while sales at B&M’s Heron Foods business rose by 18.1% to £485 million after a year of continued growth.
Revenues in France grew by 22.1% to £431 million following a strong like-for-like performance and new stores “delivering well”.
During the period, Simon Arora stepped down as the company’s chief executive after 19 years at the helm. He was succeeded by Alex Russo who previously held senior leadership positions at the likes of Asda, Tesco and Kingfisher.
Commenting on the year’s results, Russo said: “FY23 has been another year of strong underlying progress for B&M and the long-term future looks very positive. It has also been a year of planned management transition. Simon Arora has stepped down after 19 years of leading this business and we thank him and wish him well for the future.”
B&M said B&M UK like-for-like sales in the first nine weeks of the new financial year increased by 8.3%. It now expects FY24 group adjusted EBITDA (pre-IFRS 16) to be higher than the previous year.
Russo added: “We are actively responding to the short-term pressure on consumers from the cost-of-living crisis, with a relentless focus on price and value. A strengthened management team and the hard work of our 39,000 employees executing our unchanged strategy will help us deliver in the current financial year. We expect to grow sales and profits in FY24, despite economic uncertainty.”
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