B&M has upped its profit guidance for FY24, but said forecasting has been difficult against a volatile backdrop.
In an interim trading report released today, the value variety discounter increased its guidance for adjusted EBITDA to between £620m-£630m, up from £573m made last year.
The retailer said the golden quarter had got off to a strong start, like-for-like UK sales growing 1.6% in the first six weeks – which it said was a “pleasing result against an uncertain and ever-changing economic background.”
B&M posted a 10.4% incease in group revenue to £2,549m for the 26 weeks to September 2023, while like-for-like sales increased 6.2%, around half of which it said was due to higher customer transaction numbers.
Chief executive Alex Russo said: “Another strong half year has seen the group deliver 10.4% total sales growth, 16.1% adjusted EBITDA4 (pre-IFRS 16) growth and £352m cash generated from operations.
“All four of our channels of growth are delivering strong results, underpinned by our relentless focus on low prices, cost control, simplicity in everything we do and disciplined profitable growth.
”The agreement to acquire up to 51 ex-Wilko stores is a significant step that underpins our opening programme. Over the next three years we expect to open not less than 125 new B&M stores in the UK, adding up to 20% to our sales area.”
Russo added: “I am delighted that many of our existing shareholders have been with us since our IPO and continue to see our long-term growth potential. With our new store number guidance (of not less than 1,200 B&M UK stores) and continued LFL growth, we have the runway to at least double our size in the UK in the medium term, while France also offers sizeable long-term potential.”
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