B&M report mixed-bag results amid supply chain pressures
B&M European Value has reported group revenue increases of 1.2 per cent, in a patchy set of half-year results.
The variety goods retailer has consolidated last year’s rocketing growth levels to reach £2.268bn in its interim results, which is a 26.8 per cent increase on its half-year results from 2020.
On a two-year basis versus the first half of 2020, group-adjusted EBITDA4increased 86.4 per cent due to higher sales densities and a favourable sales mix.
It is also making headway in France, with 100 out of 104 stores trading as B&M with an adjusted EBITDA of £11.4m, an upgrade on last year’s first-half figures of £2.7m.
However, it has found itself facing more difficulties in the UK with supply chain challenges.
B&M UK’s like-for-like revenues decreasing by five per cent, even if the gross margin in the B&M UK business remains strong.
Meanwhile, group-adjusted profit before has decreased by 6.2 per cent to £238m versus last year’s half-year results, while cash generated from operations has halved from £403.2m to £201.7m.
Group-adjusted EBITDA also declined to £282.2 versus £295.6m in the prior year.
Simon Arora, chief executive said: “Although the pathway to a ‘new normal’ remains uncertain and the industry faces a number of supply and inflationary pressures as we enter the second half of the financial year, we are very confident that the B&M Group is well positioned to navigate these and will continue to be successful both in the UK and in France.”