B&M European Value Retail SA (LSE:BME) reported an uptick in sales in its third quarter as it announced a special dividend payment.
Revenues in the three months to 24 December 2022 grew 12.3% year-on-year to £1.56bn, the budget retailer said.
"Our strong momentum throughout the Golden Quarter across the businesses demonstrates the strength of our unchanged strategy to relentlessly focus on price, product and excellence in retail execution,” said chief executive Alex Russo.
B&M said, consistent with its capital allocation framework, it intends to declare a special dividend of 20p to be paid to shareholders on 3 February, although this is less than the 25p paid last year.
Additionally, the group narrowed in on its adjusted underlying earnings (EBIDTA), which is now expected to be between £560mln and £580mln for the year, compared to previous guidance of £550mln to £600mln, and ahead of analyst forecasts of £557mln.
“The business has exited the quarter well and will remain focused on disciplined execution,” Russo added.
Third-quarter revenue in its UK business, including B&M Express, grew 10.3% year-on-year, with the group having an additional 12 locations compared to the same period last year.
B&M France reported revenue growth of 24.9% year-on-year, while its Heron Foods division grew sales by 22.5%.
Russo added that B&M will continue to help new existing customers during the cost of living crisis despite the challenging macroeconomic environment.
B&M said stock discipline remained robust, which allowed for a stock reduction of roughly £100mln year-on-year.