Discounter B&M revenue growth slows after bumper pandemic trade
Discount retailer B&M’s first quarter results show increased revenue, but at a slower pace to the growth in its last financial year.
The group’s total revenue for the first quarter, the 13 weeks to 26 June, increased from £1.15bn to £1.18bn, providing a strong start to the new financial year for the retailer.
The results were driven by the B&M brand’s increased sales which surpassed £1bn, while income also increased at Babou.
Heron Foods’ sales fell from £113m to £101.7m and B&M shares were down 2.8 per cent as markets opened.
In the UK, like-for-like sales dropped 4.4% in the 13 weeks to June 26 – although they remained 21.3% up on a year-on-year, pre-pandemic basis – as the company faced greater competition with the rest of the high street reopening in April.
Deemed an essential retailer, B&M was able to stay open for trade throughout lockdowns, resulting in a strong pandemic performance last year.
“As expected, trading throughout the first quarter was volatile as we annualised against the high comparatives from last year.
“As expected, trading throughout the first quarter was volatile as we annualised against the high comparatives from last year,” said chief executive Simon Arora.
He continued: “Although there remains much uncertainty as to how consumer spending evolves over the coming months, we remain optimistic that our combination of exceptional value across a wide range of product categories and our convenient out-of-town locations will continue to resonate with customers.”