Bargain retailer B&M has beaten its “lockdown peak” as the firm reveals it is trading at the higher end of its guidance thanks to Brits sniffing out a bargain
On Tuesday, the value-led store said group revenues grew to £5.5bn over the year to March, up 10.1 per cent compared to last year.
The London-listed retailer also noted a nine per cent leap in adjusted earnings before interest taxes, depreciation, and amortisation to £639m.
A squeeze on living costs has driven customers to seek out affordable goods, leading to a rise in popularity in stores such as B&M.
B&M also acquired 51 Wilko stores for £13m after the fellow discounter collapsed into administration.
Alex Russo, chief executive at B&M, said the company is plotting the opening of at least 45 B&M stores this year, in line with plans to target to not ess than 1,200 B&M UK store
He said: “During Q4, we accelerated our opening programme, and the step up in openings is continuing. In FY25, we will open not less than 45 gross new B&M stores in the UK, plus a meaningful number in France and for Heron.
“We have also raised our long-term store target to not less than 1,200 B&M UK stores, which provides a clear runway of profitable growth ahead for us, from our current base of 741 B&M UK stores.
He added: “We have demonstrated strong volume-led momentum in our business throughout our trading history and that has continued, driving our profits ahead of both pandemic and pre-pandemic benchmarks.”
“Despite the more challenging comparatives, with continued new store openings, and a laser focus on low prices and best in class retail standards, we remain confident in our outlook for cash generation and profit growth.
The company said there were few lockdown winners” and who have sustained their competitive progress post-pandemic, but B&M was one.
They said: “The retail industry remains challenged by regulatory and macro pressures. In the last 12 months a number of retailers have failed and a significant number of others have issued one or more profit warnings. In this context, we delivered increased profits and cash generation, and have this year exceeded our “lockdown” peak of £626m adjusted EBITDA”.