B&M confident for the ‘Golden Quarter’ despite profit decline
Despite an increase in sales, B&M’s profits fell by £40m during the most recent financial period.
Pre-tax profits were £201m for the six months to the end of September, down from £241m for the same period in 2021, although B&M’s total revenue increased from £2.27bn to £2.3bn in the same timeframe.
Sales increases in French B&M stores (18%) and Heron Foods (14.6%) more than offset a dip in UK sales.
However, B&M is confident that it will overcome this fall in profit in the lead-up to Christmas.
The company reported that during the first six weeks of its current ‘Golden Quarter,’ like-for-like sales increased by 2.5% in B&M’s UK locations, adding that this rise “represents a significant increase in total sales over pre-Covid levels, and is against a backdrop of rising interest rates, increased cost inflation and declining consumer confidence”
CEO Alex Russo said: “Sales momentum is good as we enter a difficult period for the economy and for consumers.
“We are well positioned as we trade through the Golden Quarter and our strategy remains unchanged – a relentless focus on price and product.”