B&M European Value Retail, a convenience retailer listed on the FTSE 100, has lifted its fiscal 2024 guidance due to better-than-expected sales growth. The company now expects adjusted earnings before interest, taxes, depreciation and amortization for fiscal 2024 to range between £620 million and £630 million ($761.7 million and $774 million), compared to the previous expectation of surpassing the prior-year level of £573 million.
However, the company acknowledges that the current volatile market conditions make full-year forecasting challenging. Despite this, B&M remains optimistic about its growth channels and attributes its success to its focus on low prices, cost control, simplicity, and disciplined profitable growth.
In the first half of the fiscal year ending September 23, B&M reported a pre-tax profit increase to £222 million compared to £201 million in the same period the previous year. Adjusted EBITDA rose to £269 million from £232 million, with an improved margin of 10.5% compared to 10% previously. Revenue also saw growth, reaching £2.55 billion from £2.31 billion. Analyst estimations from FactSet predicted revenue to be around £2.495 billion.
Additionally, B&M declared an interim dividend of 5.1 pence per share for shareholders, representing a slight increase from the 5.0 pence per share provided last year.
Looking ahead, B&M expects to open a minimum of 125 new stores in the UK over the next three years, which will contribute up to a 20% increase in its sales area. The company's recent acquisition of up to 51 former Wilko stores has boosted its store-opening program.
During the first six weeks of the golden quarter, a period known for its profitability during the festive season, B&M experienced 1.6% sales growth in the UK on a like-for-like basis. The company considers this result a significant achievement given the challenging and ever-changing economic landscape.