B&M Profits In Focus Ahead of Q1 Results

B&M profits will be in the spotlight on Thursday when the group reports its Q1 results.

The discount retailers shares have grown significantly this year, gaining almost 40%, as consumers have benefitted from switching to cheaper alternative goods during the cost-of-living crisis.

The group’s most recent preliminary results showcased group revenue of £4.98bn, up 6.6%, and B&M’s UK fascia revenue up 4%. Inflation has been beneficial to the likes of B&M and Home Bargains as consumers have looked to save on their everyday shop.

However, B&M’s performance has not been unscathed by the high inflationary environment. Its adjusted profit before tax fell 12.6% to £459m as the retailer battled with economic headwinds and material cost pressures.

However, B&M forecasted the coming year’s group adjusted EBITDA to be higher than FY23, ensuring investors will be keeping a close eye on any updates on Thursday. The first 9 weeks of FY24 saw B&M UK LFL sales up 8.3%, as well as France and Heron continue its trading momentum.

The group is well positioned to navigate the cost-of-living crisis and is likely to showcase continued strength. However, over the long term holding onto consumers that made the switch will be challenging once inflation begins to ease.

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