B&M European Value Retail (BME) H1 2027 earnings summary

Executive summary

• H1 revenue rose 3.6% to £2,848m, with positive like-for-like sales across all three businesses and UK Q2 like-for-like growth of 3.2%.

• Adjusted EBITDA (pre-IFRS 16) increased 6.0% to £203m; adjusted PBT rose 16.6% to £121m.

• Back to B&M Basics is delivering; Phase 2 estate-productivity trials are testing store layouts and refits to improve sales, margins and customer experience.

Financial highlights

• Revenue was £2,848m, up 3.6% YoY; gross profit rose 5.5% to £1,060m and gross margin increased 67 bps to 37.2%.

• Adjusted EBITDA (pre-IFRS 16) increased 6.0% to £203m, with a 7.1% margin versus 7.0%; adjusted PBT rose 16.6% to £121m.

• Statutory PBT grew 53.7% to £115m, profit after tax was £84m versus £53m, and adjusted diluted EPS rose 24.3% to 8.9p.

• Post-tax free cash flow was £132m versus £51m; statutory cash generated from operations rose to £344m from £293m.

Outlook and guidance

• FY27 guidance is adjusted EBITDA (pre-IFRS 16) of £450m–£500m and adjusted PBT of £280m–£330m.

• Early Golden Quarter like-for-like trading was positive across all three businesses; UK growth in FMCG and General Merchandise continued in Q3.

• FY27 gross openings are expected at 15–20 in the UK, revised from 25–35; the UK pace is expected to return to 25–35 in FY28. France plans 15–20 openings in FY27.

• General Merchandise category margin is expected to improve YoY in H2; FMCG investment will annualize, with gradual further margin improvement expected.

• Low-double-digit UK adjusted EBITDA margin remains a medium-term ambition.