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B&M has reported that pre-tax profits fell by 17% to £436m in FY23, down from £525m the prior year.
Despite this, group revenues hit £4.9bn in the year ended 25 March, meaning that the group is 30.7% ahead of its pre-pandemic FY20 levels.
According to the group, despite the fall in profits it delivered “strong and disciplined” growth in FY23 and “excellent” profitable momentum into FY24, as cash generated from operations grew by 44.8% year-on-year to £866m.
The group’s adjusted EBITDA margin of 11.5% also stepped up compared with the 9% achieved in FY20.
Over the year, B&M grew to a total 707 stores in the UK, with 21 additional new stores opening to offset 15 closures and relocations. This increased the group’s total average selling area by 3.6%.
In addition, the group’s UK like-for-like customer transaction numbers increased every month since June.
Alejandro Russo, chief executive of B&M, said: “FY23 has been another year of strong underlying progress for B&M and the long-term future looks very positive. B&M has many years of profitable growth ahead, to be delivered through our four channels of growth and in delivering this growth, B&M will generate cash and compound earnings growth for our shareholders.
“We are actively responding to the short-term pressure on consumers from the cost-of-living crisis, with a relentless focus on price and value. A strengthened management team and the hard work of our 39,000 employees executing our unchanged strategy will help us deliver in the current financial year. We expect to grow sales and profits in FY24, despite economic uncertainty.”
