B&M revenue grows 1.2 per cent; says well stocked for Christmas
Shoppers buy gardening supplies at a B&M Home Store & Garden Centre in Leytonstone on May 09, 2020 in London, England. (Photo by Hollie Adams/Getty Images)
B&M European Value Retail reported a 1.2 per cent growth in its revenue to £2.26 billion
during the first half of the fiscal year but its pre-tax earnings declined 4.6 per cent against a strong base last year.
The discount retailer, which sells a wide range of goods from food to homewares and gardening products, claimed its performance was “strong” but warned that the industry faces supply and inflationary pressures in the second half of the financial year.
Its chief executive Simon Arora said the company is in a good position heading into the Christmas season with a good availability of stocks.
“We have responded decisively to supply chain challenges by leveraging our strong supplier relationships and we have improved in-store execution”, he said.
“We are fully stocked heading into the golden quarter”, Arora said, referring to the Christmas shopping season.
The group’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) decreased 4.6 per cent to £282.2m from £295.6m reported during the same period last year when people stocked up essentials amid the pandemic-induced lockdowns.
Its adjusted profit before tax also decreased 6.2 per cent to £238m from £253.6m reported during the year-ago period.
The company declared a dividend of 5p per share which will be paid on December 17.
But investors were disappointed as the company’s shares declined on the stock exchange for the second successive day on Friday (12) since the announcement of the results.