B&M European Value Retail (BME) H2 2026 earnings summary

Executive summary

• Adjusted EBITDA reached £459 million, at the midpoint of guidance, despite a challenging year marked by margin and cost pressures, with leverage back within the 1.0x–1.5x target range.

• Revenue grew 3.6% year-over-year, driven by new store openings in the UK and strong performance in France.

• The Back to B&M Basics program advanced, focusing on price competitiveness, range rationalization, and operational efficiency, with Phase 2 initiatives underway.

• France delivered robust like-for-like sales and market share gains, with profitability up 11.8% to £53 million and the 150th store opened in May 2026.

• Redomicile process from Luxembourg to Jersey completed in February 2026, unlocking share buyback capability.

Financial highlights

• Adjusted EBITDA: £459 million; profit before tax: £284 million, both significantly down year-over-year.

• Group revenue grew 3.6% year-over-year to £5,775m, with UK like-for-like sales flat and France up 13.4%.

• Free cash flow was £321 million, £10 million higher than last year, with a £125 million reduction in net debt.

• Maintenance CapEx at 1.1% of revenue; total CapEx increased to £139m, with over half allocated to new stores and infrastructure upgrades.

• Final dividend proposed at £0.061 per share, total ordinary dividend £0.096 per share, within the 40–50% payout ratio.

Outlook and guidance

• Margin pressures and statutory cost headwinds expected to ease in FY 2027, but cost risks from Middle East conflict remain.

• Targeting 25–35 new UK store openings in FY 2027, with balanced investment in existing estate and ongoing organic growth.

• Continued focus on cost control, working capital efficiency, and margin recovery.

• France and Heron Foods both started FY 2027 positively, with ongoing market share gains; UK seasonal trading started slower.

• Capital return decisions, including potential share buybacks, to be considered after the golden quarter in January 2027.