B&M has reported a dip in profit as well as growth in revenue and its chief executive says it has battled with “major economic headwinds” and “material cost pressures”.
The value variety retailer’s group adjusted profit before tax declined by 12.6% from £525m to £436m for the 52 weeks to March 25.
Group revenues grew 6.6% year on year to £4.9bn, which was 30.7% ahead of pre-pandemic levels on a constant currency basis.
Group adjusted EBITDA was down 7.4% from last year to £573m but this was in line with expectations as the retailer previously forecast this to be between £560m and £580m.
B&M UK fascia revenue rose 4% year on year, with like-for-like sales operating at an 8.3% increase for the first nine weeks of financial year 2024.
The group said its underlying strategy is “unchanged” with the focus on “simplicity and low costs” across its four channels of growth, which are: “improved sales in existing stores, the expansion of our store estate in the UK, expansion in France and continued growth in Heron, our UK convenience store operation”.
It said the business has “normalised” to a sustainable and higher level of underlying sales and margin compared to pre-pandemic levels. It now expects full-year group adjusted EBITDA to be higher than in financial year 2023.
B&M chief executive Alex Russo said: “FY23 has been another year of strong underlying progress for B&M and the long-term future looks very positive. It has also been a year of planned management transition. Simon Arora has stepped down after 19 years of leading this business and we thank him and wish him well for the future.
“B&M has many years of profitable growth ahead, to be delivered through our four channels of growth – existing B&M UK stores, new B&M UK stores, France and Heron – and in delivering this growth, B&M will generate cash and compound earnings growth for our shareholders.
“We are actively responding to the short-term pressure on consumers from the cost-of-living crisis with a relentless focus on price and value. A strengthened management team and the hard work of our 39,000 employees executing our unchanged strategy will help us deliver in the current financial year. We expect to grow sales and profits in FY24, despite economic uncertainty.”
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