Record number of store openings drive profit growth for B&M

A new store opening programme implemented by B&M has driven significant growth in the multi-price value retailer’s profits and revenues.

In the 26 weeks to September 26, the firm saw its gross profit rise to approximately £320.6m, up from £256.4m during the same period in 2014.

Gross revenues, meanwhile, saw growth of 25.8% to hit £930.3m, with £861.7m of that figure generated by the firm’s UK operations.

The half-year period saw B&M open a record 47 new stores across the UK, as well as the annualisation of the 52 B&M stores opened in the last financial year.

Chief executive Simon Arora said in a statement: “Our unique retail model continues to deliver strong revenue growth as we extend our geographic footprint.

“The business is growing at an annualised rate of over £400m per year, which brings its own operational challenges.”

In addition to the new store openings, B&M also attributed growth to its continued investment in its supply chain infrastructure. In June, B&M opened a new distribution centre in Runcorn, and in September the firm commissioned another for Middlewich. Together, the facilities will boost B&M’s UK warehouse space by around 800,000 sq.

According to chief exec Simon, the investment will “support the next stage” of the company’s expansion plans.

Elsewhere, the Adjusted EBITDA at B&M European Value Retail S.A., which also owns the German brand Jawoll, increased year on year by 18.6% to reach £86.6m.

While the UK business grew by 19.8%, growth in Jawoll was 7.1%

B&M European Value Retail S.A. chairman Sir Terry Leahy said: “B&M has made good progress in the first half of the financial year towards its strategic goals of reaching at least 850 UK stores and creating a platform for longer term growth in Germany, whilst delivering further pleasing growth in sales, profits and cash generation.

“We are well prepared for the rest of the year and beyond.”