LONDON (ShareCast) - (Sharecast News) - Discount retailer B&M European Value Retail said on Thursday that full-year profits were set to be above analyst expectations following a "strong" performance over the Christmas period.
In a third-quarter trading update, the company said it now expects FY22 group adjusted EBITDA on a pre-IFRS16 basis of between £605m and £625m, which is ahead of consensus expectations of £578m.

In the 13 weeks to 25 December, revenue was up 14% on a two-year basis versus pre-pandemic levels, B&M said.

Year-on-year at constant currency, revenue was 0.1% higher in third quarter. However, total B&M UK fascia revenue fell 2.5% year-on-year, with one-year LFL revenue down 6.2%.

The retailer hailed a "strong" performance across categories, with "excellent" sell-through of seasonal ranges supporting gross margin in the quarter.

Chief executive Simon Arora said: "The group has delivered a very strong Golden Quarter, with our two-year like-for-like performance demonstrating strong retention of new customers. Our decision to take receipt of imported Christmas stock early in the season meant we were able to provide customers with great products at great prices.

"Although the pandemic continues to create challenges for retailers and consumers alike, our relentless focus on value-for-money remains undiminished. Despite ongoing supply chain disruption, inflationary pressures and uncertainty surrounding possible Covid-related restrictions, we remain confident in B&M's prospects for 2022."

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