B&M European Value Retail S.A. (LON:BME), the UK’s leading variety goods value retailer, has announced its interim results for the 26 weeks to 27 September 2025.
Tjeerd Jegen, Chief Executive Officer, said:
“Our Back to B&M Basics plan is progressing and we are taking decisive actions to improve our retail execution and restore our financial performance. While the full financial benefits will build over time, I am confident our actions can restore sustainable like-for-like (LFL)1 sales growth at B&M UK, which is our number one priority and, in the medium term, low double-digit UK adjusted EBITDA2 margins as an outcome. In the meantime, our store presence in the UK and France continues to expand, supporting Group revenue growth as we reach new customers and support them in these uncertain economic times.
We continue to strengthen our capabilities and I am pleased to announce the appointment of Simon Hathway as our new Group Trading Director. Simon brings significant retail experience, including as Buying and Merchandising Director at Action Holding B.V., and I look forward to his start at B&M. I am also pleased to welcome Helen Cowing as our Interim Chief Financial Officer, who brings a wealth of CFO experience from a variety of corporate backgrounds, including Selecta Group, FatFace and Mobico Group plc8.
Lastly, I am pleased to confirm I am bringing responsibility for our Supply Chain and Retail operations under Jon Parry, one of our most experienced retail leaders, in order to create a simpler and more cohesive structure that brings our Store and Supply Chain teams even closer together. I would like to thank Gareth Bilton, Mike Schmidt and James Kew for their commitment to B&M and wish them well for the future.”
| Headline measures | H1 FY26 | H1 FY25 | Change |
| Group revenue | £2,749m | £2,644m | 4.0% |
| Group adjusted EBITDA (pre-IFRS 16)2 | £191m | £274m | (30.2)% |
| Group adjusted EBITDA (pre-IFRS 16)2 margin % | 7.0% | 10.4% | (341)bps |
| Group adjusted operating profit2 | £177m | £258m | (31.5)% |
| Group adjusted operating profit2 margin % | 6.4% | 9.8% | (334)bps |
| Adjusted diluted EPS2 | 7.2p | 13.7p | (47.9)% |
| Group post-tax free cash flow3 | £51m | £73m | (29.5)% |
| Net debt4 | £859m | £788m | 9.1% |
| Ordinary dividend5 | 3.5p | 5.3p | (34.0)% |
| Statutory measures | H1 FY26 | H1 FY25 | Change |
| Group operating profit | £149m | £235m | (36.8)% |
| Group operating profit margin % | 5.4% | 8.9% | (349)bps |
| Group profit before tax | £75m | £169m | (55.6)% |
| Statutory diluted EPS | 5.2p | 12.3p | (57.4)% |
| Group cash generated from operations | £293m | £303m | (3.0)% |
Highlights
| · | Group revenues increased by 4.0% to £2,749m (+3.9% constant currency6) driven by total value and volume growth in both B&M businesses |
| · | B&M UK7 total sales growth in the first half of 3.5% with LFL1 sales up 0.1%, with positive volume and value LFL sales in General Merchandise offset by a decline in FMCG LFL sales |
| · | 31 gross and 15 net new stores opened across the Group in H1 (23 gross, 9 net in B&M UK; 5 gross, 5 net in B&M France; 3 gross, 1 net in Heron) |
| · | Group adjusted EBITDA (pre-IFRS 16)2 of £191m down 30.2% (H1 FY25: £274m), with a margin of 7.0% (H1 FY25: 10.4%) |
| · | Group adjusted operating profit2 of £177m (H1 FY25: £258m), with statutory operating profit of £149m (H1 FY25: £235m) and statutory profit before tax of £75m (H1 FY25: £169m) |
| · | Post-tax free cash flow3 of £51m (H1 FY25: £73m), reflecting working capital outflows as inventory builds ahead of the Golden Quarter and continued investment in our new stores and infrastructure |
| · | Redomicile process is expected to complete in the new calendar year and will enable share buybacks, which the Board has confirmed as its preferred option for returning excess capital, once shareholder approvals are in place |
| · | Interim dividend of 3.5p5 per Ordinary Share will be paid on 12 December 2025 to shareholders who are on the register at close of business on 21 November 2025 (H1 FY25: 5.3p) |
| · | Net debt4 to last-twelve-months adjusted EBITDA (pre-IFRS 16)2 leverage ratio of 1.6x (H1 FY25: 1.2x). Incorporating IFRS 16, net debt to last twelve-months adjusted EBITDA2 was 2.9x (H1 FY25: 2.5x) |
| · | B&M UK LFL1 trading in early Q3 has been at the lower end of the ‘low single-digit positive to low single-digit negative’ percentage assumption range we outlined on 7 October 2025. However, with the majority of the key Golden Quarter trading period still ahead, we reiterate our guidance range for FY26 Group adjusted EBITDA (pre-IFRS 16) 2 of £470m-£520m |
| Fascia performance | Revenue £’m | Revenue growth % | Adjusted EBITDA(pre-IFRS 16) 2 margin % | |||||
| H1 FY26 | H1 FY25 | H1 FY26 | H1 FY25 | H1 FY26 | H1 FY25 | |||
| B&M UK | ||||||||
| 2,196 | 2,121 | 3.5% | 3.7% | 7.7% | 11.3% | |||
| B&M France | ||||||||
| 280 | 247 | 13.4% | 6.8% | 6.6% | 6.9% | |||
| Heron Foods | ||||||||
| 273 | 276 | (0.9)% | 1.1% | 3.9% | 6.7% | |||
Results Presentation
An in-person presentation and Q&A for analysts in relation to these results will be held today at 9.00am (UK) at Bank of America, 2 King Edward St, London, EC1A 1HQ. Attendance is by invitation only and attendees must be registered in advance.
A simultaneous live webcast and presentation will also be available. Please use the following link:
https://edge.media-server.com/mmc/p/tvkwg3op
Post-event, a replay will be available on demand via the Investors section of our website at:
Reports & Presentations l B&M Stores (bandmretail.com) for analysts and investors only.
