British discount retailer B&M European Value Retail has raised its full-year profit guidance, reporting a 16.1% rise in first half core earnings, following what it described as strong trading momentum.
B&M, which sells everything from toys to frozen food and garden furniture, said it now expected 2023/24 adjusted EBITDA of £620 million (€711.3 million) to £630 million (€722.8 million), up from £573 million (€657.4 million) made in 2022/23.
It was previously forecasting the 2023/24 outcome would be higher than 2022/23's.
For the first half to September 23, adjusted EBITDA was £269 million (€308.6 million), with revenue up 10.4% to £2.55 billion (€2.93 billion), as B&M's products and prices chimed with consumers in an ongoing cost of living crisis.
In a statement, B&M said that all its fascias were 'trading well', with positive transaction numbers reported, as well as new space growth.
Revenue rose 8.1% in its UK operation in the first half (compared to a 0.9% decline in H1 last year), or +6.2% on a like-for-like basis. In France, the group reported revenue growth of 26.1%, while its Heron Foods business reported a 17.0% increase in revenue.
'A Strong Half Year'
“Another strong half year has seen the group deliver 10.4% total sales growth, 16.1% adjusted EBITDA (pre-IFRS 16) growth and £352m cash generated from operations," commented Alex Russo, chief executive.
"All four of our channels of growth are delivering strong results, underpinned by our relentless focus on low prices, cost control, simplicity in everything we do and disciplined profitable growth."
B&M expects to reach a total of 1,200 stores across the UK over the coming years, up from its previous target of 950.
Additional reporting by ESM