B&M profits slip as boss Arora warns of challenging second half

For the period covering 26 weeks to September 25, 2021, B&M reported a 4.6% decrease in group-adjusted EBITDA to £282.2m and a 6.2% slip in group-adjusted profits before tax to £238m. 

EBITDA for the core B&M UK business dropped 6.3% to £257.4m and Herron Foods dropped 26.7% to £13.4m, while the group’s French business surged 324% to £11.4m.

In the same period, B&M reported a 1.2% jump in group revenues to £2.26bn and the business opened 14 net new stores, increasing the retailer’s store estate to 1,097.

On a two-year basis versus the first half of the 2020 financial year, group-adjusted EBITDA was 86.4% higher, while group revenues were up 16.8% due to significantly higher sales densities compared with pre-pandemic levels. 

B&M also flagged that it took deliveries of products earlier than normal in the year to avoid the ongoing freight issues facing UK retail. 

Group chief executive Simon Arora said: “The group has performed strongly throughout the first half of our financial year, with customers continuing to be drawn to our value-for-money offer. 

“We have responded decisively to supply chain challenges by leveraging our strong supplier relationships and we have improved in-store execution. As a consequence, we are fully stocked heading into the golden quarter, with stores already showcasing our excellent Christmas ranges.

“To colleagues across the group, I express my gratitude for their dedication, skill and commitment, which have made these results possible.

“Although the pathway to a ‘new normal’ remains uncertain and the industry faces a number of supply and inflationary pressures as we enter the second half of the financial year, we are very confident that the B&M group is well-positioned to navigate these and will continue to be successful both in the UK and in France.”