B&M, the discount retailer, has returned to sales growth in the UK and expects full-year profit of between £280 million and £330 million.
Like-for-like sales at its UK stores, which exclude new openings, rose 3.2% in the second quarter after falling 2.3% in the first.
That compares with an adjusted pre-tax profit of £284 million last year, when sales at established UK stores declined.
B&M said early trading in the Christmas period had been positive across all three of its businesses.
Chief executive Tjeerd Jegen said: "Back to B&M Basics is starting to deliver."
Jegen has cut prices, improved stock levels of best-selling brands and reduced the number of product lines since taking over last year.
Profit rises
Group revenue rose 3.6% to £2.85 billion in the 26 weeks to 26 September.
Adjusted pre-tax profit increased 17% to £121 million, while statutory pre-tax profit rose 54% to £115 million.
Gross margin improved to 37.2% from 36.5%, helped by stronger margins on homeware, garden and other general merchandise.
UK grocery sales were flat in the second quarter, but have grown in early third-quarter trading.
Free cash flow more than doubled to £132 million, and net debt fell 29% to £613 million.
The interim dividend rises to 3.6p from 3.5p.
France expands
B&M France grew sales 13.7%, with like-for-like sales up 5.9%, and the company now plans to open 15 to 20 stores there this year.
Heron Foods, its convenience chain, grew like-for-like sales 2.9%.
B&M will slow new UK store openings to 15 to 20 this year, down from 25 to 35, so it can spend more on refitting existing shops.
It launched a new store format in Wigan in August, with self-checkouts and wider aisles.
