B&M European Value Retail SA (LSE:BME) said it achieved “solid underlying growth in a tough environment” in the first half as it confirmed previously adjusted underlying earnings (EBITDA) guidance.
Revenues increased 1.8% up to £2.3bn in the 26 weeks to 24 September 2022, with sales picking up in the second quarter after the first three months saw a 2.3% decline, the budget retailer said in its interim results statement.
Additionally, it said trading in the first six weeks of its 'Golden Quarter' in the run-up to Christmas has been good, with like-for-like sales in B&M UK up 2.5%.
As a result, it was able to confirm previous full-year guidance of £550mln to £600mln adjusted EBITDA, “significantly ahead of the pre-pandemic level of £342mln” in the 2020 financial year.
“Our value-based approach is winning with existing and new customers, and we will do our very best to help them weather the cost-of-living crisis,” said chief executive Alex Russo.
“We are well positioned as we trade through the Golden Quarter and our strategy remains unchanged - a relentless focus on price and product.”
B&M believes it is well positioned to benefit from consumers trading down in grocery and non-grocery spending.
Statutory profit before tax slipped slightly to £201mln in the first six months from £241mln in the same period a year prior.
An interim dividend of 5p per ordinary share will be paid next month, which is in line with last year.