B&M posts “strong” full-year revenues despite Covid-19

B&M covid-19 pandemic trading update Simon Arora
B&M opened 36 new stores during the period
// B&M reveals sales growth in full-year results
// It saw “strong” revenues during the pandemic
// B&M remained open as an essential retailer during the UK lockdown

B&M has seen its full-year profits rise thanks to a steady sales growth, and “strong” revenues during the Covid-19 pandemic.

The discount retailer recorded a 3.2 per cent rise in pre-tax profit to £252 million in the 52 weeks to March 28, driven by a 16.5 per cent rise in revenue to £3.8 billion.

Like-for-Like revenue grew by 3.3 per cent for the year, including 6.6 per cent in the fourth quarter.

READ MORE: Covid-19 drives “exceptionally strong” performance in B&M sales

Meanwhile, adjusted EBITDA grew by 8.7 per cent to £319.8 million.

The retailer generated £532.6 million for the 52 week period, following the sale and leaseback of the Bedford Distribution Centre.

It opened 36 new stores during the period, with a further 30 net new store openings planned for FY21.

The rate of new openings for FY21 is impacted by disruption from Covid-19, but its overall long term target of at least 950 B&M stores in the UK remains unchanged

Since the year end, the UK arm of the business delivered £1 million in cash donations to food banks and gave £2.9 million of discounts to NHS workers.

Store and distribution colleagues received 110 per cent of normal pay to reflect their increased responsibilities and workload.

“In this last financial year our core B&M UK business delivered solid growth, as did our Heron Foods convenience store business,” B&M chief executive Simon Arora said.

“However, so much about our lives has changed so profoundly and so fast as a result of Covid-19 that a financial year which ended only a short time ago already seems a world away.

“It is an understatement to say that the progress made during the year has been overtaken by recent events.

“The challenges posed by the virus have been beyond anything we have experienced before; they have tested every aspect of the way we do business in recent weeks and I’m pleased to say that B&M is coming through the crisis well because of the strength of the B&M proposition and the way our team has responded to those challenges. For that, I express my gratitude to all of my colleagues across the business.

Looking ahead, there are of course many uncertainties for the economy, consumers and not least for the retail industry.

“We will all be living with the consequences of the virus and the public health responses to it for a long time to come.

“I am however confident though that B&M with its modern network of mostly out-of-town stores, well-invested infrastructure and value-led variety offer is well positioned to support the communities in which we trade for whatever lies ahead. The health and safety of our colleagues and customers will remain a priority.”

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