B&M revenue smashes £2bn but warns of “uncertain” second half

B&M UK fascia revenue increased by 1.3% year-on-year
// B&M revenue rises as the company remains confident for the Christmas period
// In the 26 weeks to September 25, revenue reached £2.2bn
// Group adjusted EBITDA came in at £282.2m

B&M has recorded a 1.2 per cent year-on-year increase in its first half group revenue as it reassures customers it is fully stocked for the upcoming festive trading period.

However, chief executive Simon Arora has warned of a challenging second half as profits slipped.

In the 26 weeks to September 25, revenue reached £2.2 billion and rose by 26.8 per cent on the same period two years ago.

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However, group adjusted EBITDA came in at £282.2 million compared to £295.6 million in the prior year.

On a two-year basis, it was up 86.4 per cent due to higher sales densities and a favourable sales mix.

B&M UK fascia revenue increased by 1.3 per cent year-on-year, although like-for-like revenues fell by five per cent.

On a two-year basis, like-for-likes were up 16.8 per cent as sales densities remained significantly higher than pre-pandemic levels.

Meanwhile, group adjusted pre-tax profit dropped by 6.2 per cent to £238 million in the period.

“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,” B&M chief executive, Simon Arora said.

“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.”

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