B&M has reported a 107.7% increase in profit before tax to £540.1m for the FY period ending 27 March 2021, which it has attributed to higher sales densities.
Group revenues also rose by 25.9% to £4.8bn from £3.8bn in 2020 as the retailer benefited from remaining open throughout the year.
Gross margin grew to 36.7% from 33.8% reflecting an increase of 292 base percentage points in the prior year. This was driven by a mix shift towards higher margin general merchandise sales and “unprecedented level of sellthrough” on seasonal lines.
Furthermore, through diligent cost controls, it enabled the business to deliver “operating leverage” and profit margin expansions, which inturn resulted in profit growth and cash generation of £944m up from £539.5m the previous year.
Simon Arora, chief executive, B&M, said: “The core B&M UK business, as an essential retailer, traded throughout the year and welcomed a number of new shoppers, with colleagues working tirelessly to maintain on-shelf availability and provide a safe shopping environment.
“Looking ahead, there are many uncertainties as society slowly emerges from lockdown and trading patterns are likely to be unpredictable for much of the year.”
He added: “Within our UK business, we will be up against the strong comparatives from last year but we remain confident that the B&M customer proposition, with its modern network of predominantly Out of Town stores and value-led variety offer, will prove highly relevant to the needs of shoppers.”