B&M kept its financial guidance unchanged in its half-year report on Thursday, as the company remains confident heading into the Christmas period.
The discount retailer expects full-year adjusted EBITDA to be in the range of £550 million and £600 million, which remains in line with its prior guidance. Like-for-like sales at B&M UK were up 2.5% over the first six weeks of the “golden quarter,” according to B&M.
The group stated this represents a significant increase compared to pre-covid levels and is against a difficult backdrop of rising interest rates, increased inflation and lower consumer confidence.
Alex Russo, Chief Executive, said, “Sales momentum is good as we enter a difficult period for the economy and consumers. Our value-based approach is winning with existing and new customers, and we will do our very best to help them weather the cost-of-living crisis.”
Russo added that B&M’s “four drivers of long-term growth” include its existing stores, new stores, its business in France and Heron Foods.
Elsewhere, the retailer reported group revenues increased 1.8% to £2.31 billion compared to the prior year. Its core earnings were £232 million in the six months, down 17.9%.
Meanwhile, the board kept its interim dividend of 5p per share unchanged from the previous year.
B&M’s shares have struggled during 2022 due to a difficult economic backdrop which has harmed the retail market. As a result, its shares have tumbled 45% this year.
However, over the last month, B&M has gained 11% in attempts to rebound higher.