British discount retailer B&M European Value Retail S.A. has reiterated its outlook for fiscal 2023 core profit and reported a dip in first-quarter group sales, reflecting a tough comparison with a year-ago period when consumers stocked up during lockdowns.
The FTSE 100-listed firm, which sells everything from food to homeware, gardening and do-it-yourself products, said its group revenue dropped to £1.16 billion (€1.35 billion) in the first quarter ended June 25, down from £1.19 billion (€1.38 billion) a year ago.
B&M, which recently named a new chief executive, said there were no changes to its outlook, with fiscal 2023 group adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) expected to be in the range of £550 million (€638.9 million) to £600 million (€696.1 million).
UK Revenue Decline
In its core UK market, like-for-like revenue was down 9.1% for the quarter overall, due to tough comparatives – sales in April 2021 were 'exceptionally high' it noted, and like-for-likes for the month of April 2022 were 19.1% lower.
Over the subsequent eight-week trading period covering May and June, one-year like-for-like revenues were down 1.6% it said.
The group's Heron Foods business 'performed consistently well throughout the quarter, ahead of internal expectations', it said, while its France business delivered 'strong' like-for-like revenue growth, with the Gardening and Leisure categories performing strongly, it noted.
An online trial launched by B&M in the UK now offers around 1,000 SKUs and is up and running, including delivery services.