B&M increases sales and profit
B&M has increased both its full year sales and profit as it continues its new store expansion programme.
Pre-tax profit rose by 25.4% to £229.3 million in the 53 weeks to 31 March while like-for-like sales at UK B&M store fascias grew by 4.7%.
Meanwhile, group revenues climbed by 22.4% to £2.98 billion.
Simon Arora, B&M chief executive, said: "B&M has delivered another set of strong results by doing what we do best, which is providing great value week-in, week-out on the things customers buy regularly for their homes and families.”
Some 47 new B&M fascia stores were opened in the UK and the retailer is planning to launch at least a further 45 net new stores in the current financial year as it looks to benefit from the availability of new space opportunities.
The retailer said its recently acquired Heron Foods retail group delivered an “excellent” performance in its eight months of ownership and had generated £11.7 million in adjusted EBITDA. Largely Northern based, Heron is currently pursuing an organic expansion programme of 15 to 20 new stores per annum until the group's large new southern distribution centre in Bedford comes on stream in 2020.
In Germany B&M’s Jawoll fascia is continuing to expand with 12 new stores opened during the financial year.
B&M said it has made a good start to first quarter trading across the group, with like-for-like sales up 3.1% in B&M fascia stores in the UK excluding Easter week.
Arora added: “The B&M model is highly relevant for the current difficult economic environment, with its strong position in the value and convenience areas of retailing where physical stores are winning. The business is well placed for continued profitable, long-term growth. In a retail sector beset by structural challenges B&M's unique, disruptive model stands out as a success story."
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