Retailer B&M hikes earnings outlook and declares £200m dividend

B&M European Value Retail has lifted its annual profit forecast and announced a special dividend following a robust Christmas trading season.

The variety store chain revealed turnover grew by 12.3 per cent to GBP1.57billion in the three months ending Christmas Eve, against the equivalent period last year, thanks to solid performances across all divisions.

Within the group’s French business, sales surged by a quarter to GBP136million, while its frozen food store chain Heron Foods saw revenue growth of 22.5 per cent. 

Bargain retailer: B&M sells a wide variety of discounted goods, ranging from gardening equipment to furniture, clothing and electricals, across over 1100 stores in the UK and France

Bargain retailer: B&M sells a wide variety of discounted goods, ranging from gardening equipment to furniture, clothing and electricals, across over 1100 stores in the UK and France 

Meanwhile, UK sales increased by 10.3 per cent to GBP1.3billion owing to substantial demand for grocery and general merchandise items as more Britons sought out bargains amid a worsening cost-of-living crisis. 

B&M added that ‘excellent’ sell-through in certain ranges from the latter category helped boost its gross margins, which have been impacted over the past year by price cuts on gardening products aimed at removing surplus stock.

The FTSE 100 retailer now expects to post adjusted core earnings of between GBP560million and GBP580million this financial year, compared to analysts’ current estimates of GBP557million. 

It also intends to hand shareholders a 20p per share dividend early next month, amounting to approximately GBP200million in total value.

Chief executive Alex Russo hailed the company’s healthy performance during the ‘Golden Quarter,’ which he said reflected ‘the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail execution.’

He added that even in the context of harsher economic conditions B&M ‘will continue to work hard to help both existing and new customers manage the cost-of-living crisis.’

Headquartered in Liverpool, B&M sells a wide variety of discounted goods, ranging from gardening equipment to furniture, clothing and electricals, across over 1,100 stores in the UK and France.

Sales boomed in the first year of the Covid-19 pandemic, skyrocketing by GBP1billion as its British outlets benefited from remaining open throughout the whole period and high demand for DIY products.

Trading has slowed down significantly since lockdown restrictions started to be loosened, but analysts have predicted the present inflationary backdrop might encourage more customers to search for a good deal at one of the firm’s stores. 

Russ Mould, investment director at AJ Bell, said: ‘B&M appeals to people who want to trade down from more expensive retailers, showing that the value proposition from a pricing perspective is a winning model in the current environment. 

‘Importantly, it talks about improved gross margins and more efficient supply chains, two areas which have been problematic for the retail sector in the past year.’

B&M European Value Retail shares were up by 0.5 per cent at 447.4p just before trading closed on Thursday, although their value has declined by around 29 per cent in the past 12 months.

Tags:

circle-fashion listed on couponmatrix.ukdurex listed on couponmatrix.ukgrattan listed on couponmatrix.ukjacamo listed on couponmatrix.uktoolstation listed on couponmatrix.ukwilko listed on couponmatrix.uk
circle-fashion listed on couponmatrix.ukCircle Fashion is one of the UK’s leading designer menswear retailers, with items handpicked from the latest collections of some of the world’s biggest and best fashion designers. You’ll never be short a stylish, statement piece at Circle Fashion. Shop with your Circle Fashion discount code and you could bag yourself some designer threads for unbelievably low prices. Their staff are all experts in the latest men’s trends, so you know you’re in safe hands when shopping with Circle Fashion.
durex listed on couponmatrix.ukDurex are by far and away the world's premier manufacturer of intimate protection products, but a quick look on their website will show you that they've got their finger firmly on the pulse when it comes to sex toys and lubricants as well. When you input the Durex discount code into the box that's waiting for it in your shopping cart, you'll effortlessly glide your way into a fabulous world of fun, excitement and exploration that'll leave you wanting to make every night an early night.
grattan listed on couponmatrix.ukThe UK’s original shopping catalogue offers so much more than clothes these days, but it’s still best-known for cutting-edge design that lets you enjoy the next big fashion trends before everyone else starts selling them. Shop with them using the Grattan discount code and their affordable, beautifully-made outfits stop just being desirable - and become irresistible, supercharging your wardrobe at a stroke with jeans, tops, dresses, shoes and so much more all available at the click of a button.
jacamo listed on couponmatrix.ukAppealing to fashion-forward gents everywhere, Jacamo is a go-to spot for men’s fashion. Covering everything from sharp suits to stylish activewear, Jacamo makes it easy to find good looking gear at great prices. Throw in a Jacamo discount code and you’ll have even more reason to smile! Shop for basics like jeans, tees and hoodies or kit yourself out with sharp shirts, chinos and an array of waistcoats and blazers. Whatever you’re after, Jacamo keeps it sharp and within budget.
toolstation listed on couponmatrix.ukFrom the largest circular saw to the most precise drill, there’s no task too big or small for Toolstation to take on. Home to everything you need to build, demolish, paint or decorate, you’ll be hard-pressed to find an essential tool at an unbeatable price – especially with our newest Toolstation promo code handy! Whether you’re repainting the garden fences or installing a new wall mount, get the right tool for every job at Toolstation.
wilko listed on couponmatrix.ukWilko is known for selling all things household and hardware at a reasonable price. Online and in store you will find a wide variety of products for your home including paint, lighting, accessories, DIY essentials, curtains and more. When you fancy giving your lounge a makeover or if it's time to spruce up the kitchen, find your favourite Wilko discount code from Groupon and you're in for a treat! With plenty of quality furniture, appliances, storage solutions and decorating products available for less, you can go above and beyond for your home with Wilko.