Value retailer B&M has reported a growth in sales as it plans to open around 30 stores in the year ahead.
According to its preliminary results for the 52 weeks to 25 March 2023, total sales rose 6.6% to £4.9bn from £4.6bn, while also rising 30.7% ahead of pre-pandemic FY20 levels on a constant currency basis.
Group adjusted EBITDA resulted at £573m normalising from COVID boosted FY22 of £619m, while in line with guidance and significantly ahead of pre-pandemic FY20 levels of £342m. Pre-tax profit stood at £459m, down 12.6% from £524m year-on-year.
B&M UK fascia revenue increased by 4.0% YoY, driven by one-year like-for-like (LFL) revenue increase of 0.7% and the increase in space through new store openings. Q4 LFL run rate of 3.2%, exiting the year with momentum.
There were 707 B&M stores in the UK with 21 gross new store openings offset by 15 closures and relocations during the year. Total average selling area increased by 3.6% with relocated stores providing typically 3x greater sales square footage helping drive total sales growth from relocations.
Looking ahead, B&M plans to open 30 new stores during FY24. In the first nine weeks of FY24, B&M UK LFL sales have run at 8.3%.
Alejandro Russo, Chief Executive, said: “FY23 has been another year of strong underlying progress for B&M and the long-term future looks very positive. It has also been a year of planned management transition. Simon Arora has stepped down after 19 years of leading this business and we thank him and wish him well for the future.
“B&M has many years of profitable growth ahead, to be delivered through our four channels of growth (existing B&M UK stores, new B&M UK stores, France and Heron) and in delivering this growth, B&M will generate cash and compound earnings growth for our shareholders.
“We are actively responding to the short-term pressure on consumers from the cost-of-living crisis, with a relentless focus on price and value. A strengthened management team and the hard work of our 39,000 employees executing our unchanged strategy will help us deliver in the current financial year. We expect to grow sales and profits in FY24, despite economic uncertainty.”
