B&M European Value Retail (BME) Trading Update summary

Financial performance and guidance

• FY25 group revenues reached £5.6bn, up 3.7% year-on-year on a 52-week basis, with growth driven by new stores and strong LFL sales in France, offsetting declines in the UK and Heron Foods.

• Adjusted EBITDA (pre-IFRS 16) is expected above the midpoint of the £605m–£625m guidance range.

• Leverage ratio is anticipated near the midpoint of the 1.0–1.5x target after £151m special and £149m ordinary dividends.

• Return on capital for FY25 is expected to be around 30%.

Segment and operational highlights

• B&M UK Q4 LFL sales declined 1.8% (12 weeks), while B&M France Q4 LFL grew 3.2%; FY25 LFLs were -3.1% (UK) and +2.6% (France).

• General merchandise in the UK saw LFL and total sales growth in Q4, with categories like Garden, Toys, Paint, and Stationery performing well.

• FMCG LFL was negative but total sales and volume grew; actions are underway to improve FMCG LFL.

• 45 new B&M UK stores, 11 in France, and 14 Heron Foods stores opened, all performing in line with expectations.

• UK operating costs rose ~6%, mainly due to store expansion, higher volumes, and wage rates, partially offset by productivity gains.

Strategic and corporate updates

• Redomicile process is progressing as planned, aiming to simplify administration and enhance capital return flexibility; completion expected within the year.

• CEO succession planning is underway, with an announcement expected soon.

• The group operates 777 B&M UK stores, 343 Heron Foods/B&M Express stores, and 135 B&M France stores as of March 2025.