B&M European Value Retail has raised its half-year profit guidance again as its value offering and spacious out-of-town stores continued to prove popular with shoppers during the pandemic.
The discount retailer said it now expects to post adjusted EBITDA of £285m for the six months to 28 September, compared to a previous range of £250m to £270m flagged back in July.
The upgrade comes after the group’s total revenue rose by 25.3% during the period. The core B&M stores in the UK generated revenue growth of 29.5% with a like-for-like increase of 23.0%.
Meanwhile, the group also increased its guidance on new store openings for the financial year after experiencing a “pick up” in leasing activity. It now expects to open between 40 and 45 stores in the UK, most of which are scheduled launch during its fourth quarter.
The group had opened nine new B&M stores during its first half, although this was offset by the closure of eight mostly older, smaller stores.
The company’s Heron Foods unit saw “positive” like-for-like sales growth and six net new store openings. The Babou chain in France was also said to have experienced like-for-like sales growth since its reopening from lockdown at the beginning of May.
B&M Chief Executive Simon Arora commented: “Our group has performed well in the first half. Our business model is proving well-attuned to the evolving needs of customers, given our combination of everyday value across a broad range of product categories being sold at convenient out-of-town locations.”
The company’s full interim results are due to be released on 12 November.
B&M’s rise up the retail rankings was cemented earlier this month when it entered the prestigious FTSE 100 Index with a market capitalisation of almost £5bn.
