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.”

Want your business, product or service to be seen regionally and nationally? Bdaily helps you get your story in front of the right audience, every day. Find out how Bdaily can help →

Join more than 55,000 subscribers by signing up to our daily bulletin each morning here.