B&M reiterates full-year guidance

B&M European Value Retail reiterated its full-year outlook on Thursday after half-year sales ticked higher.

The budget retailer said group revenues in the six months to 28 September rose nearly 4% to £2.64bn. Adjusted earnings before interest, tax, depreciation and amortisation ticked up 2% to £274m.

Within that, B&M UK - its biggest businesses - posted a 3.7% rise in revenues, to £2.12bn, while B&M France strengthened 6.8% and Heron foods sparked 1.1%.

The growth was slower than last year, however, when B&M UK posted a 8.1% jump in interim revenues and B&M France rocketed 26.1%

Group adjusted operating profits also fell, by 1.8% to £258m, on higher costs.

However, B&M said it was "well-positioned" for the crucial fourth quarter. Including Christmas trading, the final three months of the year are vital for most retailers.

"While the consumer environment remains uncertain, the group has demonstrated it executes well in all trading environments," the blue chip noted.

"With group volume momentum and with broadening strength in general merchandise, we are confident in our outlook for the second half and the full year."

B&M expects full-year EBITDA to come in between £620m and £660m.

Alex Russo, chief executive, said: "This was a good performance as we annualise a record prior year of earnings growth with strong first half comparatives.

"Our long-term ambition for the group remains unchanged, in supporting customers with exceptional value. As we trade through the golden quarter, we are encourage by recent volume momentum and remain focussed on delivery profitable, cash-generating growth for all our shareholders."