Discounter B&M sees impressive revenue growth amid Covid crisis
Discount retailer B&M said this morning that it had seen impressive revenue growth in the third quarter despite the coronavirus pandemic.
Group revenue increased 22.5 per cent to £1.4bn, up from £1.1bn in the same period last year.
The firm said that the combination of its low prices and out-of-town stores had proved attractive to customers through the pandemic.
B&M added that it was narrowing its profit guidance to £540m to £570m for the year – the top end of its previous range.
The new guidance factors in the payment of £80m in business rates for the year – which could have been subject to relief under the government’s emergency support measures.
In addition, B&M said that it had opened 18 new stores during the quarter, creating 500 new jobs.
Shareholders will also receive a special one-off dividend of 20p per share – an estimated £200m in total – on 29 January.
Around 30,000 of B&M’s workforce will also receive an extra week’s wages due to their efforts during the pandemic, chief executive Simon Arora said.
“Our trading performance is testament to the hard work and commitment of all our colleagues, to whom I express my sincere thanks”, he added.
“Notwithstanding our status as an essential retailer, with lockdown restrictions in the UK having tightened there remain uncertainties ahead.
“With our combination of exceptional value and convenient out-of-town locations, we are confident that our business model will prove highly relevant to the needs of customers in 2021.”
Commenting on the results, Hargreaves Lansdown analyst Susannah Streeter said:
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown: “B&M’s European Value Retail shot out of the traps in the third quarter with a surge in revenue of more than a quarter in its UK stores.
“It wears the badge of an essential retailer as it also offers some groceries alongside its extensive household and general merchandise range, so has been able to keep its doors open throughout the winter lockdowns.
“It’s likely it was able to attract last minute present buyers, whose options were severely limited elsewhere, when many more areas were placed into tier 4 just before Christmas.”