7th Jan 2021 08:28
(Alliance News) - B&M European Value Retail SA on Thursday reported strong revenue growth during its third quarter amid "unprecedented times" caused by the Covid-19 pandemic.
The discount retailer headquartered in Luxembourg said total group revenue jumped 23% at constant currency in the 13 weeks to December 26, its third quarter. Revenue totalled GBP1.40 billion, which was up from GBP1.14 billion a year before.
B&M said its year-to-date total group revenue increased by 24% to GBP3.64 billion from GBP2.93 billion the previous year.
The company's UK stores saw annual revenue growth of 27% during the quarter, achieving GBP3.10 billion compared to GBP2.41 billion the year prior, aided by the opening of 18 new B&M UK stores.
"We are awarding some 30,000 store and distribution colleagues an extra week's wages in recognition of their considerable efforts. Notwithstanding our status as an essential retailer, with lockdown restrictions in the UK having tightened there remain uncertainties ahead. With our combination of exceptional value and convenient out of town locations, we are confident that our business model will prove highly relevant to the needs of customers in 2021," said Chief Executive Simon Arora.
Despite the revenue increases, B&M slightly nudged down its annual earnings forecast. It now expects adjusted earnings before interest, tax, depreciation and amortisation of between GBP540 million and GBP570 million. Previous guidance issued in December was for an adjusted Ebitda of between GBP600 million and GBP650 million.
The company declared a special dividend of 20p per share, citing its strong results in the year to date.
Shares in B&M were down 0.2% at 528.80 in London early Thursday.
By Zoe Wickens; [email protected]
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