Value retailer B&M Bargains has posted a tick-up in revenue as demand for bargain goods has remained high amid pressure on incomes and a higher tax burden.
The Liverpool-based group, which included Heron Foods, said group revenue in the half year to 28 September increased by 3.7 per cent to £2.6bn.
While this is lower than growth last year—profit at B&M increased 10 per cent in 2023—it’s a sign consumers haven’t fully recovered from the cost-of-living crisis and are still seeking out cheaper goods.
“Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase,” chief executive Alex Russo said.
B&M opened 39 new stores in the first half of the year, bringing its total to 764. It said it aims to operate 1,200 UK stores.
Adjusted operating profit was £258m, from £263m last year, while earnings before interest, tax, depreciation and amortisation (EBITDA) was £274m, up two per cent from £269m last year.
Sales grew six per cent in the second quarter, up from 1.5 per cent in the first, B&M said.
It also plans to open a new UK imports centre in Ellesmere Port to “futureproof growth”. The facility will manage shipping containers and optimise the capacity of B&M’s five existing UK distribution centres.
Russo said: “This is a good performance as we annualise a record prior year of earnings growth with strong first half comparatives. Our model is underpinned by a disciplined and low-cost approach across all three of our businesses, focusing on simple, sustainable growth, delivered through the hard work of our teams.
Our new store opening programme is on track and performing exceptionally well. Our long-term ambition for the group remains unchanged, in supporting customers with exceptional value.
“As we trade through the Golden Quarter, we are encouraged by recent volume momentum and remain focused on delivering profitable, cash-generating growth for all of our shareholders.”