B&M delivers annual profits at top end of guidance

(Sharecast News) - Annual operating profits and sales at discount retailer B&M European Value Retail grew in the double digits, helped by the opening of 78 gross new stores across the group, with earnings at the top end of guidance. Adjusted EBITDA totalled £629m in the year to 25 March, up 10.9% on the year before, helped by higher volumes and strong cost control. This was at the top end of the company's forecast of £620m to £630m.

Group revenues rose by 10.1% to £5.5bn, with 19.2% growth in B&M France, 15.3% in Heron Foods and 8.5% in B&M UK.

"FY24 has been another good year for B&M. The three key components of our business - buying, logistics and retail, are working in balance and we continue to deliver excellent products at everyday low prices to our consumers," said chief executive Alex Russo. "We are well set for the years ahead."

The company said it plans to open at least 45 gross new B&M stores in the UK, plus a "meaningful number" in France and for Heron Foods. During the financial year, it announced new, long-term store target of at least 1,200 B&M UK stores, a significant increase from the 950 we had guided to previously.

B&M recommended a final dividend of 9.6p per share, bringing the full-year payout to 14.7p, up from 14.6p previously, in additional to the 20p special dividend paid in January.

The company also announced that it had appointed senior independent director and chair of its remuneration committee, Tiffany Hall, as its new board chair, replacing Peter Bamford who is set to retire after six years.