B&M European Value Retail (BME) H2 2025 earnings summary

Executive summary

• Revenue grew 3.7% year-over-year to £5.6 billion, driven by new store openings despite negative like-for-like sales.

• Group-adjusted EBITDA before IFRS 16 rose to £620 million, up £4 million from the prior year, reflecting resilient profit delivery.

• 70 gross new stores opened across the Group, including 45 in B&M UK, 11 in France, and 14 in Heron Foods.

• Dividend increased 2% to £0.15 per share, with post-tax free cash flow at £311 million.

• Redomicile process to Jersey is underway, expected to complete within the year, aiming to reduce costs and enable buybacks.

Financial highlights

• Like-for-like sales declined by 3.1% year-over-year, with Q4 underlying like-for-likes at -1.8%.

• Adjusted EBITDA for B&M UK was stable at £545 million; B&M France increased to £48 million; Heron Foods declined to £30 million.

• Adjusted operating profit declined 1.8% to £591 million; adjusted profit before tax fell 7.3% to £455 million.

• Gross profit margin increased from 37.1% to 37.6%, with B&M UK contributing a 42 basis point improvement.

• EPS fell to £0.335 from £0.359, impacted by higher depreciation and interest costs.

Outlook and guidance

• Actions underway in Q1 FY26 to improve like-for-like performance, including FMCG execution and restoring average selling prices in General Merchandise.

• 45 gross new UK stores are planned for FY2026, with continued disciplined geographic expansion.

• Cost headwinds of £75 million expected in FY2026, but management aims to offset these through efficiency and cost control.

• No explicit profit guidance provided; management points to analyst consensus and will update after key trading periods.