B&M European Value Retail S.A has revealed that whilst group revenues year to date have been “broadly in line with market expectations”, its performance has been strengthened by better than anticipated margins in its UK business.
As a consequence, the group said it now expects adjusted EBITDA for the 26-week period to 25 September 2021, to be in the range of £275m to £285m.
This is up from analysts’ consensus estimate for H1 FY22 adjusted EBITDA of approximately £235m.
The firm said it comes as the performance of General Merchandise and Seasonal categories has been “particularly encouraging”. Sell-through rates in those categories have been high and accordingly end of season markdowns “have been limited”.
In the trading update the firm said: “Although the group is well positioned for the upcoming Golden Quarter, trading patterns and strength of customer demand remain highly uncertain for the balance of FY22.”
B&M will provide further detail in its FY22 Interim Results on 11 November 2021.
The news comes after B&M saw adjusted pre-tax profit more than doubled in H1 FY21, with profit soaring 128.5% to £253.6m, up from £111m the prior year.
In the same period, the business, which remained open during national lockdowns, saw group adjusted EBITDA rocket 95.3% to £295.6m, up from the £151.4m reported in the first half of 2019. .