B&M European Value Retail (BME) H2 2024 earnings summary

Executive summary

• Group revenue increased by 10.1% year-over-year to £5.5bn, driven by volume-led growth across all three businesses.

• Adjusted EBITDA reached £629m (11.5% of sales), at the top end of guidance, with profit margins maintained.

• Delivered £1.8bn in cumulative shareholder returns over four years, with £348m returned in the latest year.

• 47 new B&M UK stores opened, including 21 ex-Wilko locations, accelerating store expansion.

• Maintained a conservative financial profile with leverage ratio just under 1.2x.

Financial highlights

• Adjusted EBITDA reached £629m, up 9.7% year-over-year, with group margin held at 11.5%.

• Free cash flow after tax and financing costs was £382m, reflecting disciplined inventory and working capital management.

• Proposed final dividend of £0.096 per share, total annual dividend £0.147, at the upper end of payout policy.

• B&M UK total revenue grew 8.5%, with 3.7% from like-for-likes and 2.6% from new stores.

• France and Heron delivered high single-digit like-for-like revenue growth and robust gross margin.

Outlook and guidance

• FY25 pipeline includes at least 45 new B&M UK stores, 20 Heron Foods stores, and 10 B&M France stores.

• Long-term UK store target updated to not less than 1,200, supported by increased sales densities.

• Aggressive posture in general merchandise planned for FY25, leveraging strong sourcing and competitive pricing.

• Guidance for B&M UK margins remains at 12%-13%, with similar expectations for France and Heron.

• Strategy remains focused on operational excellence, EDLP pricing, and lowest cost operating model.