B&M raises guidance as H1 sales rise 10%
In the half-year ended 23 September 2023, profit-before-tax hit £222m, up from £201m the prior year, while adjusted EBITDA rose by 16.1% to £269m
B&M has upped its full-year outlook following a period of strong trading in H1, as sales rose by 10.4% to £2.5bn over the period.
In the half-year ended 23 September 2023, profit-before-tax hit £222m, up from £201m the prior year, while adjusted EBITDA rose by 16.1% to £269m.
In light of these results, the group has lifted its guidance and now expects adjusted EBITDA to be in the range of £620m to £630m, materially higher than FY23 (£573m).
In its latest trading update, the group said it now expects to reach “not less” than 1,200 B&M UK stores in total, against a previous guidance of 950, “underlining the clear runway of growth ahead”.
Over the period it also opened 13 gross new B&M UK stores, a net increase of five stores, with its total sales area outgrowing growth in store numbers. In total it opened 28 gross new stores across the group.
It comes as the retailer said its opening programme is “building strongly and is well underpinned”. Over the next three years it plans to open not less than 125 stores, supported by an agreement to acquire up to 51 ex-Wilko stores.
According to B&M, these ex-Wilko stores will be converted steadily over the next 12 months and “in many instances will take the B&M offer to more consumers in more parts of the country”. In total, it now expects to open 35 stores in the current financial year and not less than 45 stores in each of the next two financial years.
CEO Alex Russo said: “Another strong half year has seen the group deliver 10.4% total sales growth, 16.1% adjusted EBITDA4 (pre-IFRS 16) growth and £352m cash generated from operations. All four of our channels of growth are delivering strong results, underpinned by our relentless focus on low prices, cost control, simplicity in everything we do and disciplined profitable growth.
“The agreement to acquire up to 51 ex-Wilko stores is a significant step which underpins our opening programme. Over the next three years we expect to open not less than 125 new B&M stores in the UK, adding up to 20% to our sales area. I am delighted that many of our existing shareholders have been with us since our IPO and continue to see our long-term growth potential.”
He added: “With our new store number guidance (of not less than 1,200 B&M UK stores) and continued LFL growth, we have the runway to at least double our size in the UK in the medium term, while France also offers sizeable long-term potential.”
