B&M, the variety goods value retailer, has announced its interim results for the 26 weeks ending 28 September 2024.
Highlights
- Group Revenue Growth: Revenues rose by 3.7% to £2,644m (+3.9% at constant currency), driven by volume growth. B&M UK's sales growth improved significantly in the second quarter, reaching 6.0%, up from 1.5% in Q1, with like-for-like sales improving to (1.9)% in Q2 from (5.1)% in Q1.
- New Stores: 39 new stores were opened across the Group in the first half, including 30 in the UK, 5 in France, and 4 in Heron Foods.
- Adjusted EBITDA: Group adjusted EBITDA (pre-IFRS 16) increased by 2.0% to £274m (H1 FY24: £269m), with a margin of 10.4% (H1 FY24: 10.5%).
- Operating Profit: Adjusted operating profit was £258m (H1 FY24: £263m), with statutory operating profit of £235m (H1 FY24: £275m) and statutory profit before tax of £169m (H1 FY24: £222m).
- Cash Flow: Post-tax free cash flow was £73m (H1 FY24: £143m), with clean inventory and early shipments positioning the Group well for the upcoming Golden Quarter.
- Future Expansion: A new UK imports center will open in FY26 to support growing volume demand and optimize distribution capacity, as 2024 container volumes are 40% higher than in 2019, reflecting the Group’s market share gains.
- Debt and Dividend: The leverage ratio of net debt to adjusted EBITDA (pre-IFRS 16) was 1.2x (H1 FY24: 1.1x), and net debt including leases was 2.5x (H1 FY24: 2.4x). An interim dividend of 5.3p per share is scheduled for 13 December 2024 (H1 FY24: 5.1p).
- FY25 Outlook: The Group expects full-year adjusted EBITDA (pre-IFRS 16) between £620m and £660m (FY24 52/53 weeks: £616m/£629m), with strong volume growth particularly in general merchandise.
- Leadership Transition: The Group has planned for the retirement of the Trading Director in March 2025, ensuring a smooth transition in the executive team.
- Corporate Review: A review of the Group’s corporate domicile is underway to streamline administrative processes and enhance shareholder returns, including potential share buybacks.
Chief Executive Alex Russo commented on the results, highlighting that adjusted EBITDA grew by 2.0% to £274m, with a 3.7% rise in total sales. Despite challenging comparisons, the Group's commitment to "Everyday Low Price" (EDLP) and disciplined, low-cost operations enabled steady growth across all business areas. Product ranges in both grocery and general merchandise are resonating well with customers facing economic pressures. The Group's new store opening strategy is on track, and a new imports center is set to support growth targets, including the expansion to over 1,200 UK stores and growth in France.
Outlook
The Group remains well-prepared for the upcoming Golden Quarter, maintaining focus on price, product, and standards. Despite ongoing consumer uncertainty, B&M is positioned to perform strongly, with a full-year EBITDA outlook in the range of £620m to £660m.View the B&M release
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