Liverpool value retail giant B&M lowers full-year profits forecasts but pays special £150m dividends to shareholders as it posts a Christmas trading update. Tony McDonough reports
Value retailer B&M says sales in its UK stores in the 13 weeks to December 28 came in at just under £1.4bn – 2.8% higher than in 2023.
South Liverpool-based B&M told the stock market on Thursday that it was lowering its profits forecast for the full year to March 31. It now expects its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of between £620m to £650m.
This is revised down from the previous forecast range of £620m to £660m. However, the business also announced a “special dividend” for shareholders of £150m to be paid on February 14.
B&M has more than 750 B&M stores in the UK with a target of 1,200. It also has more than 330 Heron frozen food outlets and over 120 B&M stores in France. Heron festive sales were down 5.6% to £136m while B&M France sales were up 12.5% to £164m.
B&M plans to open around 73 new stores (45 in B&M UK, 11 in B&M France and 17 in Heron Foods) during the current fiscal year. The 2026 opening programme is on track with 45 planned openings in B&M UK.
Earlier this week B&M’s main rival Home Bargains, which is also Liverpool-based, reported an 11.7% rise in annual sales to £4.2bn with pre-tax profits also rising 35% to £454.8m.
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Alex Russo, B&M chief executive, said: “Our performance across the Golden Quarter reflects disciplined operational execution across our businesses, driving volume and in turn profit growth.
“The business remains undistracted by the current economic headlines. Our operating model is well set up to give customers exceptional value when they need it most.
“Pricing, availability, store standards and a disciplined opening programme will underpin positive volume growth across our ranges. Our DC logistics network capacity upgrades are on-track in both the UK and France to support long-term growth.”