Pandemic boost sends B&M profits soaring
B&M, the discount retailer that sells a wide range of merchandise, including clothing and beauty, unveiled an 83% leap in its core earrings on Thursday. The rise came after its stores were able to stay open during lockdowns due to its food operations.
Its revenue rose 26% to £4.8 billion in the year to the end of March and it said the final month of that year saw its strongest-ever sales.
But the company also said that business remains volatile after rival non-essential stores have been able to reopen and it expects this to continue.
The company hasn’t issued any predictions for sales and earnings but did say that its margin — which had been higher in the pandemic — is likely to fall back to more ‘normal’ levels.
Looking at its figures in detail, revenues at its UK B&M chain rose 29.9% and on a like-for-like basis they were up 23.8%. Growth accelerated in the second half.
As mentioned group adjusted EBITDA (pre-IFRS16) increased by 83% to £626.4 million. And group statutory profit before tax rose as much as 108.5% to £525.4 million.
Its French Babou chain delivered adjusted EBITDA of £11.1 million, up from a loss of £3 million in the previous year, despite the disruption caused by 10 weeks of lockdown restrictions. FY21 ended with a total French estate of 104 stores, of which 73 now trade as B&M.
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