B&M profits more than double as sales climb in ‘exceptional’ year

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B&M has delivered rocketing full-year profits and a surge in sales as boss Simon Arora says the retailer’s store network and value offer will hold it in good stead for strong trading post-lockdown.

B&M recorded a 108% spike in statutory profit before tax to £525.4m in the 52 weeks to March 27, driven by a 25.9% jump in group revenue to £4.8bn.

The value retailer’s group adjusted EBITDA rose 83% to £626.4m with an adjusted margin of 13%, up from 9% on the previous year, which B&M attributed to “lack of markdown activity and operating leverage in the core B&M UK business”.

B&M store in Stafford

B&M is confident its out-of-town stores will remain relevant to modern shoppers

Sales across the group’s UK B&M fascia surged 29.9% during the year, up 23.8% like for like.

The value retailer opened 43 new B&M stores across the UK, offset by 18 closures, with openings weighted towards the second half of the year due to delays caused by Covid-19.

French subsidiary Babou also turned its first full-year profit during the period despite 10 weeks of closures due to lockdowns. The business, which operates 104 stores of which 73 now trade as B&M, recorded adjusted EBITDA of £11.1m compared to a £3m loss the previous year.

Grocery subsidiary Heron Foods recorded a 3.5% decline in adjusted EBITDA to £24.6m during the period, while sales rose 6.4% to 414.8m.

Arora said: “The last year has been an exceptional one. Our results reflect the speed at which we responded to the challenges presented by Covid-19 and the strength of our execution. The core B&M UK business, as an essential retailer, traded throughout the year and welcomed a number of new shoppers, with colleagues working tirelessly to maintain on-shelf availability and provide a safe shopping environment.

“Within our UK business, we will be up against the strong comparatives from last year but we remain confident that the B&M customer proposition, with its modern network of predominantly out-of-town stores and value-led variety offer, will prove highly relevant to the needs of shoppers. As such, we are well-positioned to support the communities in which we trade, retain the loyalty of new customers and continue our store rollout strategy.”