Revenue at B&M continues to rise as Brits seek out bargains
B&M has reported another strong set of results for the first quarter, as the group has maintained its post-pandemic edge.
Revenues at the bargain chain, which also owns Heron Foods, rose by 2.4 per cent to £1.3bn in the first quarter of the year.
B&M opened 19 new stores in the first quarter, two of which were in France. As it expands its capacity in the country, the group said it expected to open 11 stores in France.
Like-for-like sales fell by 3.5 per cent over the quarter. The company attributed the change to “exceptionally strong comparatives” in 2023 and “unseasonal weather” this spring.
“The growth fundamentals of our business are strong, with a highly disciplined approach on pricing, product and high operational standards,” chief executive Alex Russo said.
“We continue to offer our customers exceptional value at a time when household incomes are under pressure. Ahead of Q2, we have launched our Everyday Value range with more than 500 new lines in core categories across home, electrical and pet in the UK and France.
As we transition towards autumn/winter in the months ahead, our relentless focus on Everyday Low Price and Everyday Low Cost will ensure we continue to serve our customers well,” he continued.
The group reported revenue of £5.5bn at the end of the last financial year, up by 9.8 per cent from last year and 83.9 per cent from 2020.
Bargain-loving Brits boosted profits at B&M after the post-pandemic cost-of-living crisis pushed customers to seek out more affordable products.
However, shares have slipped over 20 per cent in the year-to-date. Earlier this year, analysts said they were left with “more questions than answers” after the company attributed their 2023 profits only to ‘total volume growth’.
Wayne Brown, analyst at Panmure Liberum, said: “The predictability of B&M’s model is driven by market share gains from a ‘cookie-cutter’ store roll-out and its disruptive, value-focused offer –which has been further entrenched as we head into Q2. The current valuation is very low…We remain strong buyers.”