B&M European Value Retail SA lifts full-year profit guidance after

On Jan 17, 2022

The group’s UK fascia like-for-like revenue was down by 6.2% in the third quarter compared with last year, but grew by 14% compared with two years ago, before the COVID-19 pandemic struck

B&M European Value Retail SA (LSE:BME) upgraded its profit forecast for the current financial year following a “very strong” performance in the third quarter, which saw a sharp rise in UK revenue compared with two-years-ago, before the Coronavirus (COVID-19) pandemic hit.

Underlying profit (adjusted EBITDA) for full-year 2022 is now expected to come in at £605mln-£625mln, ahead of the current analysts’ consensus estimate of £578mln, the variety goods value retailer said in a trading update.

The company reported group revenue of £1.39bn for the 13-week period from 26 September to 25 December 2021, up 0.1% year-on-year on a constant currency basis. Revenue in the year to date rose 0.9% to £3.66bn.

The group’s UK fascia like-for-like revenue was down by 6.2% in the third quarter compared with last year, but grew by 14% compared with two years ago, before the COVID-19 pandemic struck.

“The group has delivered a very strong Golden Quarter, with our two-year like-for-like performance demonstrating strong retention of new customers,” said B&M chief executive Simon Arora.

“Our decision to take receipt of imported Christmas stock early in the season meant we were able to provide customers with great products at great prices.

“The consistency of performance in the core B&M UK business reflects the growing appeal of our stores as a destination visit for seasonal products, as well as the strength of our supply chain.”

B&M opened nine new stores in the UK in the third quarter and closed two. It had 693 UK stores at the end of the third quarter and expects to open a further 13 stores before the FY22 year-end.

B&M France saw revenue growth of 30% in the third quarter.

The retailer said its staff will receive an extra week’s wages in January as a reward for “their considerable efforts this year”.

The CEO sounded an upbeat note on the outlook for the group. “Despite ongoing supply chain disruption, inflationary pressures and uncertainty surrounding possible COVID-related restrictions, we remain confident in B&M’s prospects for 2022,” he said.