B&M has reported soaring profits at its half-year mark despite UK like-for-likes only rising slightly.
Pre-tax profits rose 32.5% to £115m.
Like-for-likes rose 0.9% with total sales up 7.1% to £1.56bn in the six months to September 29, 2018.
B&M has been on the acquisition trail of late, acquiring French retailer Babou in October.
Chief executive Simon Arora said that the retailer was now well placed to “expand B&M’s disruptive, value-led model in Europe’s three largest consumer markets”.
Sales at its German business Jawoll grew 4.1% to £111.2m, but adjusted EBITDA plummeted 80% to £1.1m.
The value retailer bought Heron Foods in August 2017. The business generated £175m in sales and £9.9m in adjusted EBITDA.
Arora said: “The core B&M fascia stores made good progress and we have made a solid start in the second half of the financial year. Heron Foods has grown strongly in the UK, and in Jawoll the new management team is now utilising the B&M supply chain, with clear early signs that customers are responding positively to the new products.”
He added: “We are well placed to prosper in a difficult and uncertain retail environment.”
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