B&M profit falls 17% to £201m in first half

Liverpool-based FTSE 100 firm B&M European Value Retail S.A. on Thursday backed its annual guidance but reported a first-half revenue fall from its UK business.

The retailer reported pretax profit in the six months to September 24 fell 17% to £201 million while total revenue grew 1.8% to £2.31 billion.

Revenue from UK B&M fell 0.9% to £1.89 billion, while revenue in France rose 18% to £184 million. Heron Foods revenue increased 15% to £233 million.

The group’s adjusted earnings before, interest, tax, depreciation and amortisation fell 18% to £232 million.

B&M is based in Liverpool and registered in Luxembourg — but its shares trade in London, where its stock fell about 6%.

B&M said it plans to open three new stores in France during the current financial year to March, as well as 10 to 12 new UK stores and eight Heron Foods stores.

B&M European declared an unchanged interim dividend of 5p per share.

For the financial year 2023 ending March 25, B&M expects a further fall in adjusted EBITDA to between £550 million and £600 million, in line with previous guidance but down at least 3.1% from £619 million a year ago.

B&M said trading has been good in the early stage of the “golden quarter” which contains the key Christmas trading period. Like-for-like sales in UK stores are 2.5% higher over the first six weeks of the key period.

“We are well positioned as we trade through the golden quarter and our strategy remains unchanged – a relentless focus on price and product,” said B&M CEO Alex Russo.


Reporter: Tom Budszus

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