Dis­count re­tailer B&M posts 25.4% profit rise

Western Mail - - BUSINESS WALES -

B&M has re­ported a sharp rise in full year prof­its as cash-strapped con­sumers con­tinue to flock to the dis­count re­tailer.

The group posted a 25.4% in­crease in pre-tax profit to £229.3m in the year to March 31, with rev­enue jump­ing 22.4% to £3bn.

Soar­ing in­fla­tion caused by the col­lapse of the Brexit-hit pound has pushed up the price of ev­ery­day items for hard-pressed shop­pers and, in these con­di­tions, B&M has thrived.

Boss Si­mon Arora said: “The B&M model is highly rel­e­vant for the cur­rent dif­fi­cult eco­nomic en­vi­ron­ment, with its strong po­si­tion in the value and con­ve­nience ar­eas of re­tail­ing where phys­i­cal stores are win­ning.

“The busi­ness is well placed for con­tin­ued prof­itable, long-term growth. In a re­tail sec­tor be­set by struc­tural chal­lenges B&M’s unique, dis­rup­tive model stands out as a suc­cess story.”

B&M also de­scribed first quar­ter trad­ing as “pleasing”, with the group book­ing a 3.1% in­crease in like-for­like sales so far.

Last year B&M, which is chaired by former Tesco boss Sir Terry Leahy and mainly sells gen­eral mer­chan­dise, splashed out £152m to take over Heron Food Group, which also boosted the group’s num­bers.

“B&M has de­liv­ered an­other set of strong re­sults by do­ing what we do best, which is pro­vid­ing great value week-in, week-out on the things cus­tomers buy reg­u­larly for their homes and fam­i­lies,” Mr Arora added.

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