B&M European Value Retail SA on Tuesday said it expects full-year earnings towards the top-end of guidance after a better-than-expected fourth quarter.
In response, shares in B&M rose 3.5% to 309.80 pence in London on Tuesday morning. They have fallen 40% over the past 12 months, amid leadership changes and reduced financial guidance.
The Luxembourg-based variety goods value retailer said like-for-like B&M sales in the UK fell 1.8% in the 12 weeks to 22 March, while LFL sales in France rose 3.2% over the same period.
RBC Capital Markets noted the UK fall was better than market expectations for a 3% to 4% decline, while French sales topped its 1% growth forecast.
Full-year like-for-like sales fell 3.1% at B&M UK, while full-year LFL sales in France increased 2.6%.
B&M said total revenue rose 3.7% to £5.6 billion, or by 4.0% at constant currency in the 52 weeks to March 22, from £5.48 billion a year prior, with revenue growth from new store performance and the positive like-for-like sales in France offsetting the negative LFL performance by B&M UK and also by Heron Foods.
As a result, B&M now expects full-year adjusted earnings before interest, tax, depreciation and amortisation above the midpoint of its £605 million to £625 million guidance range. At the top-end of guidance, this would represent a 0.6% slip from £629 million posted in financial 2024.
In February, the company lowered full-year adjusted Ebitda guidance from a range £620 million to £650 million, an announcement that coincided with news that Chief Executive Alex Russo was to retire in April.
On Tuesday, B&M said it is making progress on the CEO succession and will make an announcement in the coming weeks.
B&M said it has opened 45 UK gross new stores in the financial year just ended, in line with previous guidance, and plans a further 45 new openings this financial year.
These new stores are performing in line with expectations and are generating strong returns, B&M said.
France saw 11 gross new stores and Heron 14 gross new stores opened during the year.
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