B&M European Value Retail (BME) H1 2025 earnings summary

Executive summary

• Group revenue rose 3.7% year-over-year to £2,644m, driven by volume growth and new store openings across all fascias.

• Adjusted EBITDA (pre-IFRS 16) increased 2.0% to £274m, with a margin of 10.4%, reflecting disciplined cost control and strong volume growth.

• Interim dividend increased to 5.3p, up 3.9% year-over-year, with a new payout policy of 40–50% of after-tax adjusted earnings and share buybacks underway.

• Store rollout remains on track, with 39 gross new stores opened in H1, including ex-Wilko locations, and a strong management pipeline with smooth executive succession.

• Statutory profit before tax declined 23.8% to £169m, impacted by FX derivative losses and one-off charges.

Financial highlights

• Group gross profit up 5.9% to £996m, with gross margin improving by up to 78bps to 37.7%.

• Adjusted diluted EPS (pre-IFRS 16) declined 4.8% to 14.7p due to higher interest charges and a larger asset base.

• Net debt/adjusted EBITDA (pre-IFRS 16) at 1.2x, including leases at 2.5x, within the target range.

• Post-tax free cash flow for H1 was £73m, down from £143m last year, mainly due to higher working capital and CapEx.

• Adjusted operating profit (pre-IFRS 16) down 1.8% to £258m; statutory operating profit fell 14.6% to £235m.

Outlook and guidance

• Full-year Group adjusted EBITDA (pre-IFRS 16) expected in the range of £620m–£660m (FY24: £616m/£629m for 52/53 weeks).

• 45 new UK stores to open in the current year, with France set to open 11 stores and more planned for next year.

• Trading momentum improved in Q2 versus Q1, with expectations for continued volume growth in the golden quarter.

• New UK imports centre at Ellesmere Port to open in FY26, supporting future volume growth and distribution efficiency.

• Inventory built early to mitigate supply chain risks; working capital growth for FY25 expected to be no more than £50m.