B&M European Value Retail (BME) Q1 2025 TU earnings summary

Executive summary

• Total sales growth reached 2.4% for the quarter, with group revenue rising to £1,345m, driven by volume and new store openings across all businesses.

• France delivered nearly double-digit like-for-like growth, while the UK faced weather-related challenges but maintained profitability.

• General Merchandise, especially Home, DIY Paint, and Stationery, performed strongly, offsetting Garden's weather-impacted decline.

• B&M UK opened 19 new stores in Q1, all performing ahead of expectations; on track for 45 new stores this year.

• Operational execution remained robust, with clean stock exits and strong shelf availability.

Financial highlights

• B&M UK reported total sales growth of 1.5% in the quarter, with revenue at £1,080m; B&M France revenue was £126m, up 7.5%; Heron Foods revenue was £139m, up 2.7%.

• Group revenue growth was 2.4% at constant FX rates; B&M France local currency growth was 9.6%.

• B&M UK like-for-like sales declined (3.5)% after adjusting for Easter timing, against a strong +9.2% prior year comp.

• Gross margin in the UK was flat to up year-over-year and in line with expectations, supported by strong supply chain management and product mix.

• EBITDA margin in B&M UK remains targeted at 12%-13%, with no change in outlook.

Outlook and guidance

• Management remains confident in delivering a positive like-for-like sales number for the full year, despite a -3.5% LFL in Q1 (excluding calendar impact).

• Profitable, cash-generating growth expected for the full year, supported by strong fundamentals and normalizing comparatives.

• No change to guidance on store openings, with close to 30 gross new stores expected by half one and 20 Heron openings targeted for the year.

• Everyday Value range launched with 500+ new lines in UK and France to support value proposition as household incomes remain pressured.

• Gross margin outlook remains positive, with continued supply chain benefits and disciplined cost management.