Rising costs weigh on profits at discount retailer B&M

B&M, the British discount chain that also operates in France, saw its annual profit drop sharply due to rising costs and investments in pricing. The retailer is warning of rising costs in the coming fiscal year.

“Back to basics”

B&M’s annual profit (EBITDA) fell by 26% over the past year to 459 million British pounds (537 million euros) in the fiscal year that ended on March 28. Pre-tax profit fell by more than 37% to £284 million (€329 million), while revenue grew by 3.6% to £5.775 billion (€6.7 billion), mainly due to new store openings. Like-for-like sales remained flat in the United Kingdom but grew in France, where the chain now has 150 stores and is also gaining market share.