British discount chain B&M European Value Retail S.A. has forecast a 9.8% increase in full-year profit at the top end of its guidance as it reported a 10% rise in revenue that partly reflected new store openings.
The FTSE 100 retailer, which sells everything from garden furniture and electrical items to toys and food, said it expected to report adjusted EBITDA, its key profit measure, of £629 million (€735.93 million) for the year to March 30, 2024.
That compares with guidance of £620 million (€725.40 million) to £630 million (€737.10 million) and £573 million (€670.41 million) made in 2022/23. Revenue was £5.5 billion (€6.44 billion).
New Store Openings
The group, whose stock market value of £5.1 billion (€5.97 billion) is similar to that of Marks & Spencer, opened 47 B&M UK stores in 2023/24 and plans to open not less than 45 in each of the next two financial years.
It currently trades from 741 stores in the UK under the B&M brand, 335 stores under the Heron Foods and B&M Express brands, and 124 stores in France.
The group said B&M UK's like-for-like sales were up 2.9% in the fourth quarter and up 3.7% over the full year.
'Strong Operational Execution'
“The group has performed well in the year delivering strong operational execution," commented Alex Russo, chief executive. "We serve our customers through a relentless focus on everyday low prices (EDLP), great product ranges and excellence in operational standards.
"This delivers profitable, cash generating growth for our shareholders. The business and team are well set up for the year ahead, our pipeline remains on track to open not less than 45 UK B&M stores in each of the next two financial years and our French and Heron businesses continue to demonstrate significant profitable growth potential."
Additional reporting by ESM
