12th Nov 2020 08:27
(Alliance News) -Â B&M European Value Retail SA on Thursday declared a bumper special dividend after a sharp rise in interim profit.
Shares in the discount retailer were down 0.8% at 497.30 pence in London Thursday morning, reversing an opening rise.
For the half year to September 26, revenue was up 25% to GBP2.24 billion from GBP1.79 billion a year ago, and pretax profit more than doubled to GBP235.6 million from GBP106.0 million.
B&M branded store revenue in the UK was up 30%, including like-for-like revenue growth of 23%. B&M said like-for-like sales growth in the UK is expected to moderate over the second half, but so far in the third quarter, trends have been at a similar level to the interim period.
Heron Foods has continued to trade well, B&M said, while there has been positive like-for-like sales growth at Babou in France since re-opening in May. Approximately half of Babou stores remain open, but are restricted to selling essential goods only during France's November lockdown.
B&M raised its interim dividend by 59% to 4.3p per share from 2.7p last year. Further, it declared a special dividend of 25.0p, equating to around a GBP250 million payout in total.
Looking ahead, B&M said that while both the B&M UK and Heron Foods businesses remain open, there is "significant uncertainty" surrounding the latest Covid-19 restrictions during the second half of the financial year.
The range of potential outcomes for the current financial year remains "unusually wide at this stage of the year", the firm noted, and it is "difficult to make a clear assessment of how consumers will react over the coming months".
"The group delivered a strong performance in the first half, with our business model proving well-attuned to the evolving needs of customers. Our combination of everyday value across a broad range of product categories and convenient Out of Town locations has proved popular with shoppers," said Chief Executive Simon Arora.
He added: "Despite the wider economic uncertainty and ongoing restrictions related to Covid-19, we remain confident in our business model and future prospects."
By Lucy Heming;Â [email protected]
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