B&M first half EBITDA jumps by 34%
B&M European Value Retail has reported a 34% jump in first half EBITDA as it revealed that it is on track to open at least 50 net new stores in the current financial year.
In the 26 weeks to 27 September, adjusted EBITDA rose to £73 million, up from £54.5 million in the prior year, while group revenues increased by 29.7% to £739.8 million.
In the UK, total revenue climbed by 19.4% as the retailer opened 20 net new stores in the period and launched its 400th UK store in October. Like-for-like sales rose by 4.8%.
B&M, which floated on the London Stock Exchange earlier this year, expects to open at least 50 net new stores this financial year and said its pipeline for 2015-16 is “encouraging”.
B&M chairman Sir Terry Leahy said: “B&M has delivered good momentum in sales, profits and cash generation during the first half whilst at the same time pushing on with rapid store rollout and investing in new infrastructure and team capability to support this long-term growth.
“The business is well-positioned as the leading limited assortment general merchandise discounter in a growth sector which offers scope for it to at least double in size in the UK alone over the next few years - and we are making good progress towards that objective."
The period also saw B&M’s entry into the German retail market through its acquisition of Jawoll as it pursues its long-term goal of becoming a pan-European variety goods retailer. B&M said Jawoll had traded well and slightly ahead of expectations since the acquisition and had invested in its IT systems and buying team.
Simon Arora, B&M chief executive, said: “I am delighted to report that our maiden first half results are in line with expectations for both our UK and our German retail businesses. Our unique variety retailing model continues to appeal to shoppers, who are drawn by our broad spread of products and exceptional value for money.
“We remain very pleased with our new store programme, which is delivering healthy earnings growth and exceptional returns on capital. This financial year we plan to create 2,500 new jobs in the UK. We remain confident that we can increase our store base from 400 stores to our stated goal of 850 stores in the UK."
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