UK discount retailer B&M has forecast higher core profit for 2024, after reporting an annual profit in line with expectations.
The company, which sells everything from toys to frozen food and garden furniture, reported adjusted core profit of £573 million ($710 million) for the year to March 26, up 12% from the previous year.
B&M said the growth was driven by strong sales growth in both the UK and Germany, as well as continued cost control.
The company also said it expects to open around 60 new stores in the UK and Germany in 2024, taking its total store count to around 700.
"We are pleased to report another strong year of progress," said Simon Arora, chief executive of B&M. "We have continued to grow our market share in both the UK and Germany, and we are confident that we can continue to deliver strong growth in the years ahead."
B&M's shares were up 3% in early trading on Wednesday.
The company's results come at a time when the UK retail sector is facing a number of challenges, including rising inflation and supply chain disruptions. However, B&M's results suggest that discount retailers are still able to thrive in this environment.
B&M's strong performance is likely to be welcomed by investors, who have been concerned about the outlook for the UK retail sector. The company's results suggest that there are still opportunities for growth in the sector, even in the face of challenges.