B&M has raised its full-year profit guidance after posting a 16.1% rise in first half core earnings, on the back of strong trading momentum.
For the six months to 23 September, the discount retailer saw group revenue rise 10.4% to £2.549bn on the year prior to £2.55bn, driven by an increase in customer transactions.
Pre-tax profits hit £222m, up from £201m the previous year with the group set to open at least 125 new stores in the UK over the next three years, boosting sales by up to 20%.
The business said all stores are trading well with positive transaction numbers and new space growth as it raised its EBITDA guidance to between £620m and £630m in 2024, compared to £573m in 2023.
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The group opened 28 gross new stores – 13 in B&M UK, 10 in Heron Foods and five in B&M France – and now expects to reach not less than 1,200 B&M UK stores in total, versus the previous guidance of 950 in 2017, bolstered by its acquisition of a number of stores from collapsed retailer Wilko.
Chief executive Alex Russo said that the guidance gave B&M “the runway to at least double our size in the UK in the medium term, while France also offers sizeable long-term potential”.
Russo said: “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.”
He added: The agreement to acquire up to 51 ex-Wilko stores is a significant step which 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.”
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