B&M Value Retail sees current profits ahead of 2023

(Sharecast News) - B&M Value Retail said it expected current adjusted core earnings to be higher as it posted a fall in annual profits. The company, which owns discount retail stores in the UK and France, said like-for-like sales in Britain were up 8.3% in the first nine weeks of the current fiscal year.

Pre-tax profit fell 17% to £436m, as revenue rose 6.6% to £5bn.

New chief executive Alejandro Russo said B&M was "actively responding to the short-term pressure on consumers from the cost-of-living crisis, with a relentless focus on price and value".

"A strengthened management team and the hard work of our 39,000 employees executing our unchanged strategy will help us deliver in the current financial year. We expect to grow sales and profits in FY24, despite economic uncertainty."

Russo said many consumer trends were now favouring B&M, including trading down, as shoppers sought value at the German challenger chains Aldi and Lidl "which remain heavily focused on own label".

"Our branded offer is highly complementary to them. Independent research shows that most (Aldi & Lidl) shoppers also shop elsewhere, and where we are co-located, our stores tend to trade exceptionally well. This is as true in France as it is in the UK."

Reporting by Frank Prenesti for Sharecast.com