Group Opens 18 New Stores and Forecasts EBITDA of £540m-£570m
- B&M revenue increased by 23% in Q3
- 18 new stores added to portfolio
- Expected adjusted EBITDA between £540m and £570m for the year
- Low prices and convenient locations contribute to growth
- French arm Babou saw a £1.3m fall in Q3 revenue
The UK’s largest variety goods value retailer, B&M, has reported a 23% growth in revenue for the 13 weeks ended December 26, 2020. The group’s total group revenues increased by £60.5m compared to the same period last year. This growth is expected to contribute to an adjusted EBITDA of between £540m and £570m for the twelve months ended March 27, 2021. The company opened a net of 18 B&M UK and two Heron Foods stores during this period. Simon Arora, CEO at the firm, said that their combination of low prices and convenient locations make their business model highly relevant for customers in 2021. Despite both B&M and Heron Foods announcing growth in revenues, Babou, the group’s French arm, saw a £1.3m fall in Q3 revenue. In response, six Babou stores were rebranded as B&M shops, bringing the total to 44 out of 104 French stores. Arora also mentioned that while the company acts as an ‘essential retailer’, there are uncertainties ahead due to lockdown restrictions.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about B&M’s revenue growth, store openings, and the performance of its French arm. It includes relevant details about the company’s strategy and CEO’s perspective on future prospects.
Noise Level: 3
Noise Justification: The article provides relevant information about B&M’s revenue growth and store openings, but lacks in-depth analysis or exploration of long-term trends or consequences. It also does not delve into the reasons behind Babou’s revenue decline.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and consumer goods sectors
Financial Rating Justification: The article discusses the growth in revenue for B&M, a UK variety goods value retailer, which impacts financial markets as it is a publicly traded company and affects the retail sector. The announcement of adjusted EBITDA for the year also has implications on investor sentiment and market performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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