B&M sees higher earnings in 2024 as it gives up pandemic gains
The company said that the 2023 financial year would be its base year for future success
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Your support makes all the difference.Retailer B&M has said that it expects earnings to grow in the current financial year, sending its shares soaring on Wednesday morning.
The business said that it had registered revenue of nearly £5 billion in the 12 months to the end of March, a rise of 6.6% compared to the year before.
But its profit dropped by 17% to £436 million as shopping habits returned to more normalised levels after the pandemic, the business said on Wednesday.
The financial year that 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, as it left the pandemic effects behind.
And trading since the end of March has indicated that this growth is likely to be visible during 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 this year than it was last.
Shares rose just over 6% following the news.
“The 2023 financial year has been another year of strong underlying progress for B&M and the long-term 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 of 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 of growth (existing B&M UK stores, new B&M UK stores, France and Heron) and in delivering this growth, B&M will generate cash and compound earnings growth for our shareholders.
“We are actively responding to the short-term pressure on consumers from the cost-of-living crisis, with a relentless focus on price and value.
He added: “We expect to grow sales and profits in FY24, despite economic uncertainty.”