B&M European Value Retail SA (LSE:BME) promised shareholders a 20p special dividend after disclosing strong Christmas trading.
The retailer said in the 13 weeks to 23 December 2023, revenue grew 5.0% year on year to £1.65 billion, with year-to-date revenue rising 8.1% to £4.19 billion on a constant currency basis.
Including the week to 30 December, B&M UK like-for-like revenue growth was 1.2% in what it called “a strong quarter given prior year comparatives”, with performance driven by positive transaction numbers.
Alex Russo, chief executive, said: “The performance across the Golden Quarter has been pleasing, with strong operational execution across the three businesses.”
B&M reiterated guidance for adjusted EBITDA within its target range of £620- £630 million for the financial year, up from £573 million the year before.
The firm said an excellent general merchandise volume performance delivered strong sales participation and high sell-through and it exited the quarter with a clean inventory position flat year on year.
B&M said it is on track to open 76 gross new stores in financial year 2024 (45 in B&M UK, 11 in B&M France and 20 in Heron Foods).
The 20p special dividend will be paid on 9 February to shareholders on the register on 19 January.