First-quarter group revenues at B&M fell 2.2% to £1.16bn as it lapped buoyant trade in its British stores last year during the Covid lockdown.
In the value chain’s core B&M fascia in the UK, like-for-like revenue slid 9.1% to £957m over the 13-week period to 25 June due to exceptionally high sales in April 2021 distorting comparatives.
Providing a further breakdown of its performance, the group revealed that like-for-like revenues at the 705-strong chain had dropped by 19.1% over the five-week trading period of April 2022. However, the decline was only 1.6% in the subsequent eight weeks.
During the period, B&M launched an online trial in the UK, offering around 1,000 SKUs for home delivery, including furniture, electrical equipment and toys. The B&M website has historically not been transactional and instead listed items to act as a footfall driver into its stores. The trial is expected to be expanded if customer feedback is positive.
Meanwhile, revenue at the 109 B&M stores in France climbed from £68m to £91m following a strong performance in the gardening and leisure categories.
The group’s Heron Foods business was also said to have performed consistently well throughout the quarter and exceeded internal expectations. Revenue at the 311 discount food outlets rose from £102m to £113m.
B&M noted that ongoing stock and cost discipline remained a focus across all its fascias.
It added that it was making no change to its guidance issued on 31 May for the full year, which caused a significant fall in the group’s share price. B&M’s adjusted EBITDA is expected to be in the range of £550m to £600m, down from the last year’s £619m.
NAM Implications:
- Key is managing City expectations…
- …then most things are possible in a capitalist system.
- Watch this space!
