Value retailer B&M has recorded a dip in UK like-for-like sales as it said the group’s performance fell “below expectations”.
The retailer said this was ultimately driven by “challenging market headwinds” but that the overall profit delivery remained “resilient”.
In the 52 weeks to March 29, overall group revenue increased 3.7% to £5.6bn while group adjusted operating profit fell 1.8% to £591m.
Group adjusted EBITDA saw a slight 0.6% increase from £616m to £620m year on year.
B&M said there was a “challenging UK retail trading environment” with a subdued garden season, increased consumer caution, limited real wage growth, and the timing of Easter contributing to the sales decline.
It added that in the first quarter of the new financial year, it will focus on “product ranging, in-store merchandising, and space allocation in key categories like cleaning, health & beauty, and food” to strengthen future performance.
While UK FMCG saw negative results, the performance in general merchandise was “more robust” and saw volumes and values grow in the fourth quarter.
B&M France recorded a 2.6% increase in like-for-like sales driven by customer transaction numbers and new store openings throughout the year.
Heron Foods was more challenging as sales declined 0.6%. However, its full-year revenues are 32.8% higher than three financial years ago.
It remains in good standing for the future and will address the underperformance in FMCG categories and drive average selling prices in general merchandise.
It is striving to reach at least 1,200 B&M stores in the UK, and opened 45 gross new stores in the financial year.
New chief executive Tjeerd Jegen will take on his role from June 16.
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