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B&M slides as first-half profits rise less than expected, current trading 'volatile'

Published 09/11/2023, 09:45
Updated 09/11/2023, 10:11
B&M slides as first-half profits rise less than expected, current trading 'volatile'

Proactive Investors - Shares in B&M European Value Retail SA (LON:BMEB) were among the biggest fallers on the FTSE 100 on Thursday morning, down over 4% to 515p after profits came in slightly below forecasts and current trading was mixed.

Group revenues of £2.55 billion for the half-year to 23 September were up 10.4% on the previous year.

Underlying profits (EBITDA) climbed 16.1% to £269 million, which was short of the consensus analysts estimate of £273 million.

Looking forward the discount retailer said it now expects to expand the UK store estate to "not less than 1,200" in total compared to its previous guidance of around 950 shops.

In the first six weeks of the current 'golden quarter', B&M UK like-for-like growth has been 1.6%.

"Momentum has been particularly strong in the last three weeks, with LFL3 exit growth of 4.5%," it added, noting the "tough comparatives" from a year ago that make this "a pleasing result against an uncertain and ever-changing economic background".

For the full year, management guides to EBITDA of £620-630 million, versus £573 million last time, though the company said the volatile market background makes forecasting for the full year difficult.

Broker Peel Hunt (LON:PEEL) said the interim results broadly met market expectations and that current trading is "satisfactory without being eye-catching".

Read more on Proactive Investors UK

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