B&M flags decent group-wide revenue growth

16th Apr 2024 09:34

(Sharecast News) - Discount retailer B&M reported growth in revenue across its fascias in a full-year update on Tuesday, with B&M UK achieving £4.41bn, marking a 4% increase.

The FTSE 100 company said B&M France saw revenue jump 22.1% to £514m for the 53 weeks ended 30 March, while Heron Foods achieved revenue of £560m, up 18.1% on the year.

It said the growth in group revenue was driven by volume growth and a positive like-for-like performance, and was bolstered by an additional trading week and early Easter timing - factors not expected to recur in the 2025 period.

B&M UK's fourth-quarter like-for-like growth stood at 2.9% for the 14 weeks ended 300 March.

The board said that growth was propelled by strong volume performance in both fast-moving consumer goods (FMCG) and general merchandise.

B&M opened 47 new B&M UK stores during the year, exceeding previous guidance.

The board said the new stores, including those acquired from defunct retailer Wilko, were performing well and surpassing expectations.

Group adjusted EBITDA for the financial year was expected to reach £629m, positioned at the top end of the £620m-to-£630m guidance range, and making for a 9.8% increase compared to 2023, and an 83.9% rise compared to 2020.

Strong operating cash generation, coupled with a favourable inventory exit position, resulted in leverage falling below 1.2x, compared to 1.3x at the end of the 2023 financial period, even after the payment of a £201m special dividend in February.

The company also demonstrated disciplined capital returns and shareholder value creation, with cumulative cash distributions amounting to £1.8bn during the financial periods between 2021 and 2024.

"The group has performed well in the year delivering strong operational execution,"s aid chief executive officer Alex Russo.

"We serve our customers through a relentless focus on everyday low prices, great product ranges and excellence in operational standards."

Russo said that delivered profitable, cash generating growth for shareholders.

"The business and team are well set up for the year ahead, our pipeline remains on track to open not less than 45 UK B&M stores in each of the next two financial years and our French and Heron businesses continue to demonstrate significant profitable growth potential."

At 0912 BST, shares in B&M European Value Retail were down 2.1% at 499.9p.

Reporting by Josh White for Sharecast.com.