Discount retailer B&M has announced an increase in its full-year earnings, driven by successful expansion in France and better-than-expected performance from its new stores.
The Liverpool-based company reported a revenue of £5.57bn for the 52 weeks ending March 29, marking a 3.7 per cent increase year on year. This rise in revenue was primarily attributed to the contribution from new stores.
Over the course of the year, B&M opened 70 new stores – 45 in the 海角视频, 14 under the Heron Foods brand, and 11 in France – setting a strong foundation for the coming year.
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The company now operates 777 shops and 343 Heron Foods stores in Britain, as well as 135 shops in France, as reported by .
B&M's French division outperformed its 海角视频 and Heron Foods branches, reporting a revenue growth of 7.8 per cent compared to 3.8 per cent in the 海角视频 and a decrease of 0.6 per cent at Heron.
Despite wage increases, the 海角视频 consumer environment has been negatively affected by economic uncertainty, low confidence due to inflation, and high bills.
While revenue growth across all three B&M divisions slowed significantly from last year – particularly in France – the company's adjusted operating profit margin rose by around one per cent in each area.
Earnings before interest, tax, depreciation and amortisation (EBITDA) reached £619m, above the midpoint of its £605m-£625m guidance range and in line with expectations forecast in April.
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Adjusted operating profit dipped by 1.8 per cent to £591m, impacted by increased depreciation and adjusting items.
Profit before tax saw a decrease from £498m to £431m this year, attributed to rising interest and finance costs, according to B&M.
Analysts at Panmure Liberum have given the stock a 'Buy' rating, setting a target price of 600p.
On June 3, the share price closed at 333.22p. Over the past month, the share price has fallen by 1.79 per cent and nearly seven per cent since the start of the year.
"The shares have done better the past couple months but remain cheap," remarked the analysts, who are on the lookout for "confirmation that underlying trading is positive".
AJ Bell's analyst Russ Mould commented that the retailer should have performed better under the prevailing market conditions. He said: "It should have mopped up extra business from people trading down from more expensive options, while also being a shop of choice for cash-strapped individuals wanting bargains."
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