B&M European Value Retail shares have risen to their highest level since May 2022.
Discount retailers climbed to 455p per share before returning to 448.6p, up 0.8% for the day.
B&M has announced that the Group’s profit has increased by 12.3% to £1.6 billion in the 13 weeks to 24 December.
UK B&M-fascia store sales were up 10.3% year-on-year, with same store sales up 6.4%. The company said it enjoyed “very good performance” across all categories of food and general merchandise, while “excellent sales rates across its core general merchandise range” boosted gross margins.
French B&M division sales surged 24.9% over the period in the third quarter, while Heron Foods sales increased 22.5%.
1,133 stores were open as of Christmas Eve, an increase of 23 from the same period in 2021. These consist of 705 B&M branded stores and 315 Heron Food outlets in the UK and 113 B&M stores in France.
Alex Russo, CEO of FTSE 100 Companies, commented:
“Despite the difficult macroeconomic environment, we will continue to work hard to help both existing and new customers navigate the cost of living crisis,” he added.
B&M expects to generate adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of £560m to £580m in the current financial year to March 2023. said.
According to the company, this is above the current broker consensus estimate of £557m.
“The business ended the quarter on a strong note and remains focused on disciplined execution,” Russo said.
On the back of these strong third quarter results, B&M announced plans to pay a special dividend of 20p per share in February.
Commenting on Thursday’s results, Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said: B&M European Her Value retailers are benefiting from this trend, with baskets stacked with discounted merchandise in the pre-Christmas season. ”
She added: It shifts very well.