B&M (LSE: BME) saw a decline in its shares by 6.5% to 552.20 pence each on Thursday morning. This made B&M the poorest performer in the FTSE 100 index.
Despite the drop in share value, B&M announced encouraging results for the first quarter of the financial year 2024, which ended on June 24. The company reported a robust and profitable performance across all regions, driving its quarterly revenue higher.
According to B&M, total revenue for the quarter grew by 14% to £1.32 billion, compared to £1.16 billion in the previous year, meeting the company’s internal expectations. The UK division contributed significantly to this growth, with revenue surging by 11% to £1.07 billion from £957 million year-on-year. B&M attributed this increase to consistently strong and positive transaction numbers, resulting in a noteworthy 9.2% growth in like-for-like revenue compared to a 9.1% decline in the same quarter of the previous financial year.
Furthermore, B&M’s Heron Foods division witnessed a substantial rise in revenue, reaching £135 million, a 19% increase from £113 million in the prior year. Meanwhile, B&M France reported revenue of £117 million, marking a notable surge of 29% from £91 million in the previous year.
Looking ahead, B&M remains optimistic about its future prospects and confident in its ability to transition smoothly into the autumn and winter season. CEO Alex Russo emphasized the company’s unwavering strategy, which centres on price, product, and maintaining excellent retail standards. The strong trading momentum displayed by B&M underscores the efficacy of this approach.
