B&M has upgraded its full year revenue forecasts following continued strong trading throughout the recent lockdown.
In its latest trading update, relating to the fourth quarter to date, the value retailer reported that revenues and margins ‘remained strong’ – particularly across its UK stores. Despite, what it called, a backdrop of uncertainties relating to lockdown restrictions.
The group, which operates 1,075 stores in the UK and France (trading as B&M, Babou and Heron Foods), now expects its adjusted EBITDA for the financial year ending 27 March 2021 to be in the range of £590 million to £620 million. That’s after its voluntary repayment of around £80 million in Covid-19 business rates relief. It’s also understood that B&M won’t be taking any of the latest rates support offered by Chancellor Rishi Sunak in his Spring Budget.
The forecast is up from the previous range it announced on 7 January 2021 of £540 million to £570 million.
In that January trading update for the third quarter – covering 27 September 2020 to 26 December 2020, the retailer posted revenue rises of 22.5 per cent on a constant currency basis, compared to 9.9 per cent in Q3 of the previous year.
The company said: “Group sales will shortly annualise against the elevated sales, driven initially by consumer stockpiling in mid-March 2020, and which continued throughout FY21 due to the ongoing impacts of Covid-19.
“This, together with the unknown impact of changes to restrictions in 2021, creates significant forecasting challenges which will persist well into the new financial year.”
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