B&M sees its shares soar as profits revealed

Retailer B&M has said that it expects earnings to grow in the current financial year, sending its shares soaring yesterday.

The business said it had registered revenue of nearly £5 billion in the 12 months to the end of March, a rise of 6.6% on the year before.

But its profit dropped by 17% to £436 million as shopping habits returned to more normal levels after the pandemic.

The financial year just passed will be the one to measure future success against, B&M said.

It is the new “underlying revenue and profit base level from which we can grow”, it told shareholders.

And trading since the end of March has indicated this growth is likely to be visible in the current financial year. Like-for-like sales were up 8.3% in the first nine weeks of the year.

The company said it expects underlying earnings, before interest, tax, depreciation and amortisation, to be higher than last year.

Shares rose just over 6% following the news.

“The 2023 financial year has been another year of strong progress for B&M and the longterm future looks very positive,” said chief executive Alejandro Russo.

“It has also been a year of planned management transition. Simon Arora has stepped down after 19 years leading this business and we thank him and wish him well for the future.

“B&M has many years of profitable growth ahead, to be delivered through our four channels (existing B&M UK stores, new B&M UK stores, France, and Heron stores) and in delivering this growth, B&M will generate cash and compound earnings growth for our shareholders.”