B&M half-year profits skyrocket as sales surge

The value retailer recorded a 95% surge in group EBITDA to £296m in the 26 weeks to September 26, as adjusted group pre-tax profit more than doubled to £254m. 

B&M’s group revenues jumped 25% during the period to £2.2bn, spurred by a 23% surge in like-for-like sales across its core UK store estate.

The retailer said while it expected second-half sales to “moderate”, its third-quarter sales were currently at a similar level to those recorded in its first quarter, which were up 27% year on year in like-for-like terms.

The retailer’s grocery fascia Heron Foods posted 15% sales growth during the period to £216m, while its French operation Babou registered a 2.4% decline in sales to £141m.

The retailer said due to ongoing uncertainty it was not able to provide full-year guidance but was “cautiously optimistic that its broad range of essential goods will continue to appeal to customers”.

Chief executive Simon Arora said: “The group delivered a strong performance in the first half, with our business model proving well-attuned to the evolving needs of customers.

“Our combination of everyday value across a broad range of product categories and convenient out-of-town locations has proved popular with shoppers.

“During such challenging times, we have been proud to play an active role in supporting the communities in which we operate, having created over 1,800 new jobs across the group during the past six months in addition to repaying the £3.7m furlough support originally received during the height of the crisis. 

“Despite the wider economic uncertainty and ongoing restrictions related to Covid-19, we remain confident in our business model and future prospects.”