B&M Revenue Rises 10%, ‘Volume Driving Profitable Growth’

Discount retailer B&M European Value Retail (LON: BME) reported Wednesday that FY24 revenue rose 10.1% to £5.5 billion for the financial year ending March 30th, 2024.

This growth was primarily driven by increased customer traffic and new store openings.

Group adjusted operating profit also climbed 10.9% to £614 million, demonstrating volume-driven profit growth and effective cost control.
“FY24 has been another good year for B&M,” said Chief Executive Alex Russo. “We continue to deliver excellent products at everyday low prices to our consumers.”

The company highlighted strong performances across all its retail fascias, with positive customer transaction numbers and successful expansion through new stores. B&M also maintained a healthy financial position with strong cash flow and a manageable debt ratio.

Looking ahead, B&M plans to accelerate its store opening program, targeting at least 45 new stores in the UK for the next financial year and a “meaningful number” of openings in France. The company has also raised its long-term store target to 1,200 B&M stores in the UK, indicating confidence in its future growth prospects.

B&M's focus on value and its ability to drive sales volume has positioned it well over recent years as the economy navigated challenges, including soaring inflation.

B&M shares fell more than 7% following the report on Wednesday as analysts highlighted a lack of guidance as reasons for the decline.

Following the report, JPMorgan analyst Borja Olcese cut the firm's price target on B&M European Value Retail to 471p from 585p, keeping an Underweight rating on the shares.

In April, analysts at Jefferies upgraded B&M to Hold from Underperform with a price target of 525p, up from 380p per share. The firm said the company continues to “operate a winning format,” and they increasingly believe the company's EBITDA “step-change will be an enduring feature.” Jefferies said at the time that it felt B&M's valuation was undemanding at current share levels.