B&M sales and EBITDA jump after Jawoll acquisition and store expansion

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B&M European Value Retail recorded a rise in EBITDA and revenue in its first half as expansion continued and it bedded in newly acquired Jawoll.

The value general merchandise group’s adjused EBITDA increased by 34% for the six months to September 27 as revenues during the period surged by 29.7% to £739.8m.

Both adjusted EBITDA and revenue were boosted by its new German discount business Jawoll, which B&M acquired at the end of March.

B&M increased UK like-for-likes during the six month period by 4.8%.

The retailer opened 20 net new stores in the first half of the year and opened its 400^th UK store in October 2014.

The rapid store expansion will continue as B&M eyes at least 50 net new openings across the entire financial year.

B&M chairman Sir Terry Leahy said: “B&M has delivered good momentum in sales, profits and cash generation during the first half whilst at the same time pushing on with rapid store rollout and investing in new infrastructure and team capability to support this long-term growth.

“The business is well-positioned as the leading limited assortment general merchandise discounter in a growth sector which offers scope for it to at least double in size in the UK alone over the next few years - and we are making good progress towards that objective.”

B&M chief executive Simon Arora added the retailer plans to create 2,500 new jobs in the UK this financial year and remains confident it will reach 850 stores across the UK.