B&M European Value Retail (BME) Q3 2025 TU earnings summary

Executive summary

• Exited the golden quarter with strong profitability and momentum, driven by robust performance in toys and Christmas seasonal categories, and positive like-for-like (LFL) sales in December and January of approximately +1.5%.

• Q3 FY25 saw strong volume momentum, driving profit and cash generation, with a £151m special dividend declared.

• Disciplined operational execution led to profit growth, with the business maintaining focus despite economic headwinds.

• Strategic price investments in general merchandise (3%-4% reductions) and home (5% reduction) were executed without impacting gross margins.

• FMCG inflation was zero for two consecutive quarters, contrasting with high market inflation, supporting volume growth and market share gains.

Financial highlights

• Group Q3 revenue grew 2.8% year-over-year on a constant currency basis; YTD revenue up 3.5%.

• Profit outlook for the year narrowed to £620m–£650m, compared to £616m in the prior 52-week period; targeting the top half of this range.

• Announced a special dividend of £0.15 per share (£151m total), alongside a 45% increase in the ordinary dividend.

• Over the last five years, £2.2bn has been returned to shareholders via dividends.

• EBITDA margin guidance remains at 12%-13%, supported by a strong supply chain and cost base.

Outlook and guidance

• FY25 Group adjusted EBITDA guidance narrowed to £620m–£650m, reflecting continued profit growth.

• Business is set up for positive LFL growth and continued bottom-line expansion into the next financial year.

• No further price investment planned for general merchandise; FMCG pricing to remain stable with no inflation expected.

• 45 new store openings planned for FY26, including 12 in France, with a disciplined approach to expansion.

• Further excess capital returns to be finalized after completion of the redomicile process.