B&M European Value Retail will pay a special dividend of 20p after another successful Christmas period.
Owner of B&M Foods and Heron Foods, said revenues grew 5 percent year-on-year to £1.65billion in the 13-week period ending December 23. This brings year-to date growth to £4.19billion on a constant-currency basis.
Alex Russo said, “The performance of the golden quarter was pleasing, with strong execution across all three businesses.”
B&M European Value retail was founded in Luxembourg in 1978. It is listed on the London Stock Exchange. The group owns 717 B&M stores and 331 Heron Foods shops in the UK, and 122 B&M branded shops in France.
The FTSE-100 retailer that sells homewares, DIY and food has bucked retail gloom, with shoppers looking for discounts to help manage cost of living crises.
B&M UK reported a growth of 1,2% in revenue, compared to the same period last year. The company said that it was a “strong quarter compared to prior year comparisons”, and the performance was driven by positive transactions.
B&M France saw revenue increase by 11.3 percent to £151 millions and Heron Foods saw a 11.7 percent growth to £144million in the 13-week period ending December. B&M UK’s sales increased by 3.7 percent to £1.4 billion in the same time period.
Discounters reported that “general merchandise” was in high demand, and “strong sales participation as well as high sell-through” were achieved.
B&M reiterated that it is well-positioned to face the challenges of the coming year and its guidance for the Group.
B&M raised its earnings forecast for the 2024 fiscal year from £573 to between £620 and £630 millions in November.
B&M announced that it is on track to open at least 76 new gross stores for the entire group in the current financial year. This includes 45 for B&M UK and 11 for B&M France, as well as 20 for Heron Foods. Russo increased the group’s target for long-term shops to 1,200 B&M UK outlets, up from 950. He claimed that this would lead to “disciplined growth in cash”.
Shareholders who were registered on January 19 will receive a 20p special dividend on February 9.
Early trading saw shares of B&M European Value Retail down 14p or 2.5 percent, to 547 3/4p. Stocks have increased by approximately 22.5 percent in the last year.