B&M European Value Retail (BME) investor relations material

Executive summary

• Adjusted EBITDA reached £459m, at the midpoint of guidance, despite margin and cost pressures.

• Revenue grew 3.6% year-over-year, driven by new store openings and strong performance in France.

• Leverage improved to 1.4x, within the target range, supported by robust cash flow and working capital discipline.

• The Back to B&M Basics program advanced, focusing on price competitiveness, range rationalization, and operational efficiency.

• France delivered double-digit sales growth and market share gains, while Heron Foods began a strategic review to enhance its proposition.

Financial highlights

• Adjusted EBITDA: £459m; profit before tax: £284m, both significantly down year-over-year.

• Revenue up 3.6% year-over-year to £5,775m, with UK like-for-like sales flat and France up 13.4%.

• Free cash flow post-tax: £321m, £10m higher than last year, with a £125m reduction in net debt.

• Final dividend proposed at £0.061 per share, total ordinary dividend £0.096 per share, within the 40–50% payout ratio.

• Non-cash impairment charge of £35m due to lower profitability, not expected to recur at this level.

Outlook and guidance

• Margin and cost headwinds expected to ease in FY 2027, with targeted cost control and margin recovery.

• Store expansion in the UK to continue at 25–35 new sites, with balanced investment in new and existing estate.

• France and Heron Foods started FY 2027 positively, with continued market share gains and like-for-like growth.

• No further significant FMCG price investments anticipated; focus shifts to price perception and operational improvements.

• Slower start to seasonal trading in the UK for FY27.