B&M reported a rise in its profits and sales as it maintained “disciplined operational execution” during the key golden quarter.
Group sales for the discount chain rose 3.3% in the 13 weeks to 28 December, driven by a 2.8% uptick in its UK business to £1.3bn and 12.5% jump in its French division to £164m.
The retailer reported its FMCG and general merchandise saw “excellent seasonal range sell-through”, with seasonal confectionery, toys, Christmas home ranges all delivering positive volume growth and positive like-for-like growth in December.
B&M noted that gross margin and profit performance for the UK was “strong” in the quarter, adding that its January seasonal transition is “well on track and availability is very strong”.
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The discount chain is on track to open 73 gross new stores, including 45 in the UK, 11 in France and 17 of its Heron Foods banner.
Following the positive performance, the retailer has narrowed its profit growth guidance range and is expecting to deliver a group adjusted EBITDA in the range of £620m to £650m and group adjusted operating profit of between £590m to £620m.
B&M chief executive Alex Russo said: “Our performance across the golden quarter reflects disciplined operational execution across our businesses, driving volume and in turn profit growth.
“The business remains undistracted by the current economic headlines. Our operating model is well set up to give customers exceptional value when they need it most.
“Pricing, availability, store standards and a disciplined opening programme will underpin positive volume growth across our ranges. Our DC logistics network capacity upgrades are on-track in both the UK and France to support long-term growth.
“Our strategy is clear – we are an everyday low-price discounter with a laser-focus in keeping excellence in retail standards and our costs the lowest. This allows us to drive volumes by offering our best-selling products at exceptional value to every customer. Through this volume growth, and with our leading return on capital business model, we continue to generate profit and cash returns for our shareholders.”
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