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B&M has maintained its previous guidance for the full year (FY23) with group adjusted Ebitda expected to be in the range of £550m-£600m, as the company expects to retain customers due to the economic crunch.
This comes despite a 16.7% drop in pre-tax profits year-on-year for the 26 weeks to 24 September 2022 (H1 FY23), down from £241m to £201m, driven by a reduction in gross margins from 37% to 34.9%.
Overall, B&M’s operating profit declined from £283m to £249m in H1 and group adjusted Ebitda decreased 17.9% to £232m.
However, total group revenues increased by 1.8% to £2.3m, although the UK saw a 0.9% drop in revenues to £1.89m over the period. B&M UK revenues also included £17m of wholesale revenues, down year-on-year from £24m.
B&M said it is trading well into the first six weeks of the Golden Quarter, with like-for-like sales at B&M UK up 2.5%.
Looking ahead, the company plans to open 10-12 new stores over H2 FY23, with B&M France reportedly on track to open three new stores and Heron Foods delivering an additional eight.
Alex Russo, chief executive, said: “Sales momentum is good as we enter a difficult period for the economy and consumers. Our value-based approach is winning with existing and new customers, and we will do our very best to help them weather the cost-of-living crisis. We are well positioned as we trade through the Golden Quarter.
“I would like to personally thank Simon Arora for his leadership of B&M. He and his brother Bobby have built an exceptional business and the team will continue to build on Simon’s legacy.”
He added: “The longer-term outlook remains positive for sustained margin improvement, with cost control, efficiencies and improved processes offsetting cost inflation.”
