B&M has made significant changes to its management team following a sharp decline in profits in the first half of its financial year. The British non-food discounter’s revenue, on the other hand, rose by 4 %.
Sharp decline in profits
In the six months ending 27 September, B&M’s operating profit fell by 31.5 % to 177 million pounds (200 million euros). Adjusted gross operating profit fell by 30.2 % to 191 million pounds (220 million euros). The group’s revenue did rise by 4 % to 2.75 billion pounds (3.1 billion euros).
The results have forcid former Hema CEO Jegen to take action. Former Action director Simon Hathway will become Group Trading Director, Helen Cowing will become Chief Financial Officer, and Jon Parry will take responsibility for Supply Chain and Retail. Gareth Bilton, Mike Schmidt, and James Kew have left the company.
CEO Jegen says that the “Back to B&M Basics plan is progressing”, adding that “We are taking decisive actions to improve our retail execution and restore our financial performance.” The chain will also continue to expand its store presence in the United Kingdom and France, as B&M seeks to reach new customers and further boost its sales.
