In its preliminary results for the 52 weeks to March 26, 2022, B&M notes a decline in group revenue of -2.7% year-on-year to £4,673m, but up +22.5% on an annual basis.
Gross margin increased slightly year-on-year in B&M’s core business in the UK, driven by strong performance in general merchandise and a strong sell-through rate on seasonal ranges, which helped limited markdown activities.
Group Adjusted EBITDA (pre-IFRS16) was £619m (down £7m year-on-year), with an Adjusted EBITDA margin of 13.2%, both slightly above expectations.
The group’s statutory profit before tax remained stable at £525 million. A total of 34 new B&M UK stores opened, offset by 14 closures and relocations.
Chief Executive Simon Arora says, “The strength and resilience of our business model has enabled us to execute our plans well and continue to deliver excellent value for money to our customers. As a result, we maintained the increase in sales and earnings compared to pre-pandemic levels.
“The retail sector is facing inflationary pressures, while our customers have to deal with a significant increase in the cost of living, which makes spending behavior in the coming year difficult to predict. However , we have seen before that during these times customers will increasingly be looking for the best value for money, and B&M is uniquely placed to meet these needs.”
Alex Russo, currently chief financial officer, has been announced as Simon’s successor.