Discount retailer significantly increases profit forecasts on half-year update
Discount retail group B&M European Value Retail has significantly raised half year EBITDA forecasts.
In a trading update today covering the half year up to September 25, 2021, the Liverpool-based company said that, while group revenues year to date have been broadly in line with market expectations, gross margins have been stronger than originally anticipated in the B&M UK fascia business.
The business operates stores throughout the UK and France under the B&M, Heron Foods and Babou brands.
It said performance of general merchandise and seasonal categories has been particularly encouraging.
Sell-through rates in those categories have been high and, accordingly, end of season markdowns have been limited.
As a consequence, the group now expects adjusted EBITDA, on a pre-IFRS16 basis, for the first half of its 2022 financial year to be in the range of £275m to £285m.
That compares with the analysts’ consensus estimate for the same period of approximately £235m.
However, the group said that, although it is well positioned for the upcoming seasonal ‘Golden Quarter’, trading patterns and strength of customer demand remain highly uncertain for the balance of 2022.
B&M will provide further detail in its interim results announcement on November 11, 2021.
