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, reflecting disciplined cost control and strong operational execution.

• 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.

• Store rollout remains on track, with 39 new stores opened in H1, including ex-Wilko locations, and further expansion planned in the UK and France.

• Leadership transitions have been smooth, with key roles filled by experienced internal candidates and a strong management pipeline.

Financial highlights

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

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

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

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

• Adjusted EBITDA margin (pre-IFRS 16) was 10.4%, down 18bps year-over-year.

Outlook and guidance

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

• 45 new UK stores and 11 in France planned for the year, with further expansion and a new UK imports centre opening in FY26.

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

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

• Formal review of corporate domicile underway to enhance capital return flexibility.