B&M European Value Retail ups guidance following 'strong' first-half performance

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General merchandise retailer B&M European Value Retail lifted its guidance on performance after reporting 'strong' first-half growth as customers spent more money per visit.

First half adjusted earnings before interest taxes and depreciation (EBITDA) was expected to be above the previously guided range of £250m to £270m announced on 28 July, and now estimated to be approximately £285m, the company said.

For the period from 29 March to 26 September 2020, revenue grew 25.3%, with B&M UK stores generating revenue growth of 29.5% including like-for-like growth of 23.0%.

Trading momentum at B&M UK stores were maintained in the second quarter, with 19.1% like-for-like growth in the quarter and an exit rate at a similar level, the company said.

'Strong first half revenue growth and profit uplift [was] driven by elevated average spend per visit,' it added.

The company opened 9 new B&M UK fascia stores by the half year end, offset by 8 closures, the latter comprising mostly older, smaller stores.