B&M raises profit forecast following first-half sales surge

The value operator now expects to post an adjusted EBITDA of approximately £285m for the six months to September 26, outstripping its previously guided range of £250m to £270m.

B&M said group revenues surged 25% during the period, with its UK stores generating revenue growth of 30%. On a like-for-like basis, UK sales climbed 23%.

The retailer also increased guidance on new store openings for the financial year following a “pick up” in leasing activity. It now expects to open between 40 and 45 stores in the UK, most of which are likely to launch during its fourth quarter.

B&M added that its French fascia Babou recorded “positive” like-for-like performance since stores reopened on May 11. It said it expects the division to contribute “a small positive EBITDA” contribution for the half year.

B&M boss Simon Arora said: “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.

“Our people have risen to the many challenges posed by the Covid-19 crisis, not least in serving our customers through a period of high demand, keeping our shelves filled, providing a clean and safe shopping environment, as well as sourcing higher volumes than we had planned. I thank them all for their commitment, hard work and resilience.”

B&M will unveil its interim results on November 12.