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B&M has announced it has raised its guidance for FY22 following a period of “very strong” trading in the run-up to Christmas.
The retailer’s EBITDA is now expected to be in the range of £605m to £625m, ahead of analysts’ current estimate of £578m.
Although total UK revenue was down 2.5% year-on-year in its third quarter, with one-year like-for-like revenue down 6.2%, total revenue was up 14.0% on a two-year basis against the pre-pandemic levels of Q3 FY20.
In addition, in the period ended 25 December 2021, the retailer reported a “strong” performance across categories, with an “excellent” sell-through of seasonal ranges supporting its gross margin.
Overall, the group reported year-on-year revenue growth of 0.1% over the quarter, and opened nine gross new UK stores in the period. It also plans to open a further 13 sites before the end of the FY22 period as it continues to expand.
Following its strong Christmas performance, the group noted it will reward over 24,000 employees for their “considerable efforts” over the past year with a discretionary bonus payment of an extra week’s wages this month.
Simon Arora, CEO of B&M, said: “The group has delivered a very strong Golden Quarter, with our two-year like-for-like performance demonstrating strong retention of new customers. Our decision to take receipt of imported Christmas stock early in the season meant we were able to provide customers with great products at great prices.
“The consistency of performance in the core B&M UK business reflects the growing appeal of our stores as a destination visit for seasonal products, as well as the strength of our supply chain.”
He added: “I would like to thank all of our colleagues for helping to deliver our best-ever Christmas. Although the pandemic continues to create challenges for retailers and consumers alike, our relentless focus on value-for-money remains undiminished.
“Despite ongoing supply chain disruption, inflationary pressures and uncertainty surrounding possible Covid-related restrictions, we remain confident in B&M’s prospects for 2022.”
