B&M European Value Retail SA (LSE:BME) shares gained ground on Thursday after the discounter posted improved first-half figures as cost pressures continued to drive demand.
Group sales climbed by 3.7% to £2.64 billion over the six months to September, aided by a 6.0% uptick across the UK in the second quarter, B&M reported on Thursday.
Adjusted pre-tax earnings increased by 2% to £274 million in the meantime, with an interim dividend of 5.3p being declared, against 5.1p last year.
“Our product ranges across both grocery and general merchandise resonate very well with customers at a time when disposable incomes remain under pressure and the tax burden continues to increase,” chief executive Alex Russo said.
He added momentum had been encouraging ahead of the ‘Golden Quarter’, leaving the group targeting earnings of £620 million to £660 million for the full year.
A plan was unveiled for a new UK imports centre in 2026 after 30 new stores opened in the country over the first half ahead of targets to take the figure from 764 to 1,200.
Sales across B&M’s French and Heron Foods businesses climbed by 6.8% and 1.1% during the half respectively, following growth of 26.1% and 17% a year earlier.
“This is a good performance as we annualise a record prior year of earnings growth with strong first-half comparatives,” Russo added.
“While the consumer environment remains uncertain, the group has demonstrated it executes well in all trading environments,” the company said.
Shares climbed 4.8% to 398.10p on Thursday.