B&M has revealed group revenues increased by 1.2% to £2.26bn – and up 26.8% on a two-year basis – during the 26-week period ending 30 September 2021.
It said the performance comes as gross margin in its UK business was “particularly strong”, driven by a change in the sales mix towards general merchandise and high sell-through across Spring/Summer seasonal ranges leading to limited markdown activity
However, it revealed that group adjusted profit before tax decreased by 6.2% to £238m – down from £253.6m the previous year, whilst statutory profit before tax increased by 2.4% to £241.4m.
It said this comes as the impact of IFRS16 on the group interim financial statements was to decrease profit before tax by £6.6m.
During the period, B&M opened 14 gross new B&M UK stores with nine store closures.
It added that it experienced “more challenging trading conditions” at its Heron Foods fascia as average transaction values for grocery shopping normalised to pre-pandemic levels, but it still managed “satisfactory earnings through careful cost control and cash discipline”.
Simon Arora, chief executive, said: “The group has performed strongly throughout the first half of our financial year, with customers continuing to be drawn to our value for money offer. We have responded decisively to supply chain challenges by leveraging our strong supplier relationships and we have improved in-store execution.
“As a consequence, we are fully stocked heading into the Golden Quarter, with stores already showcasing our excellent Christmas ranges. To colleagues across the Group, I express my gratitude for their dedication, skill and commitment, which have made these results possible.”
He added: “Although the pathway to a ‘new normal’ remains uncertain and the industry faces a number of supply and inflationary pressures as we enter the second half of the financial year, we are very confident that the B&M Group is well positioned to navigate these and will continue to be successful both in the UK and in France.”