Value Retailer B&M Thrives Amidst Cost-of-Living Crisis
- B&M maintains FY23 guidance despite a £40m profit drop
- Group adjusted Ebitda expected to be between £550m-£600m
- Pre-tax profits down 16.7% year-on-year to £201m for H1 FY23
- Overall group revenues increased by 1.8% to £2.3bn
- UK revenues dropped 0.9% to £1.89m in H1
- B&M UK revenues include £17m of wholesale revenues, down from £24m YoY
- Like-for-like sales at B&M UK up 2.5% in the first six weeks of the Golden Quarter
- Plans to open 10-12 new stores over H2 FY23
- B&M France set to open three new stores, Heron Foods eight more
- CEO Alex Russo praises Simon Arora’s leadership and legacy
- Value-based approach helps weather cost-of-living crisis
- Longer-term outlook positive for margin improvement
Discount retailer B&M has maintained its full-year guidance for FY23, despite a £40m drop in pre-tax profits year-on-year. Group adjusted Ebitda is expected to be between £550m and £600m. The company’s overall revenues increased by 1.8% to £2.3bn, with UK sales dropping 0.9% to £1.89m in H1 FY23. B&M plans to open 10-12 new stores over H2 FY23, including three new B&M France locations and eight more for Heron Foods. CEO Alex Russo credits the value-based approach for weathering the cost-of-living crisis and praises Simon Arora’s leadership.
Factuality Level: 8
Factuality Justification: The article provides accurate information about B&M’s financial performance, including profit drops and revenue changes, as well as the company’s plans for future store openings and its approach to the cost-of-living crisis. It also includes a quote from the CEO, Alex Russo, which adds credibility to the report.
Noise Level: 3
Noise Justification: The article provides relevant information about B&M’s financial performance and future plans, including guidance for the full year (FY23), profitability, revenue changes, and store expansion. It also includes a statement from the CEO addressing the cost-of-living crisis and long-term outlook. However, it could benefit from more in-depth analysis of the company’s strategies to maintain profitability during economic challenges and potential risks or limitations.
Financial Relevance: Yes
Financial Markets Impacted: B&M’s financial performance impacts its stock value and potentially related companies in the retail sector.
Financial Rating Justification: The article discusses B&M’s financial performance, including changes in profitability, revenue, and future plans. This information can affect investors’ decisions and may impact the stock market value of B&M and other retail companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
www.retailsector.co.uk