B&M raises profit guidance after 16.6% increase in half-year adjusted profit

B&M European Value Retail plc (LON:BME), the UK’s leading value retailer, has announced its FY27 Interim results for the 26 weeks to 26 September 2026.

Financial Highlights

Group revenue increased by +3.6% to £2,848m (+3.5% constant currency¹), with like-for-like (LFL)² growth across all three businesses (B&M UK³, B&M France and Heron Foods)

B&M UK³ total sales grew +2.4%, with LFL² sales up +0.4%, including +3.2% LFL² growth in Q2, driven by General Merchandise with an improved FMCG performance versus Q1

B&M France delivered +13.7% total sales growth, driven by strong LFL² performance of +5.9% in H1 (Q2 LFL +6.5%) and new space growth

Heron Foods total sales grew +3.0%, with LFL² sales growth of +2.9%

Group gross margin of 37.2%, +67 bps higher year-on-year, driven by trading gross margin⁴ recovery in B&M UK³

Group adjusted EBITDA⁵ (pre-IFRS 16) of £203m, up +6.0% (H1 FY26: £191m), with a margin of 7.1% (H1 FY26: 7.0%). Group adjusted profit before tax⁵ (PBT) of £121m, up +16.6% (H1 FY26: £103m), with a margin of 4.2% (H1 FY26: 3.8%)

Statutory profit before tax of £115m, up +53.7% YoY (H1 FY26: £75m)

Post-tax free cash flow⁶ of £132m (H1 FY26: £51m), reflecting higher cash profit, accelerated working capital benefits and the phasing of capital expenditure in H1 FY27

Net debt⁷ to adjusted EBITDA⁵ (pre-IFRS 16) leverage ratio of 1.3x (H1 FY26: 1.6x) reflecting strong cash generation and improved working capital position. Net debt including leases of 2.8x (H1 FY26: 2.9x)

Interim dividend of 3.6p per Ordinary Share will be paid on 18 December 2026 to shareholders who are on the register at close of business on 20 November 2026

Tjeerd Jegen, Chief Executive Officer, said:

“Back to B&M Basics is starting to deliver. Over the past year, we have sharpened our pricing, improved the on-shelf availability of our best-selling brands, revamped our in-store promotions and reduced SKU count across our stores. Our goal has been to restore B&M UK to sustainable like-for-like (LFL)² growth while making everyday life more affordable for customers facing mounting cost-of-living pressures, and our second quarter LFL performance of +3.2% shows the first phase of our strategy is working. B&M France delivered another strong quarter, with Q2 LFL sales of +6.5% and a margin similar to B&M UK. B&M France has considerable growth potential as we achieve critical scale there and deepen awareness of our differentiated value proposition with customers.

With Phase 1 of our strategic growth plan now starting to deliver, we are making progress with Phase 2, where we see an opportunity to transform the customer experience of B&M and boost the productivity of our UK estate through new store formats. Sales data from early trials have been encouraging and we plan to increase investment in re-laying and refitting stores in H2, balancing this with a slower pace of UK store rollouts in FY27.

We are restoring Group profitability through re-establishing UK LFL sales growth and improving our UK category margin while managing continued cost headwinds and investing in our business. This will support our ambition of achieving low double-digit adjusted EBITDA margins for B&M UK in the medium term as an outcome.

Early Golden Quarter trading has been positive in each of our operating businesses, with continued LFL growth at B&M UK in both FMCG and General Merchandise. Today, we introduce financial guidance for FY27 and expect Group adjusted EBITDA⁵ (pre-IFRS 16) in a range of £450m – £500m, versus £459m in FY26, and Group adjusted PBT of £280m – £330m, versus £284m in FY26.”

Operational Highlights

Four net new stores opened across the Group in H1 (11 gross), with 9 net new stores in B&M France (10 gross) offset by 2 net closures in B&M UK and 3 net closures in Heron Foods

Our new B&M 2.0 concept store launched in Wigan on 28 August and is seeing encouraging early trading

Early Golden Quarter trading has been positive in each of our three operating businesses, with continued LFL² growth at B&M UK in both FMCG and General Merchandise

Atheeq Akbar, whom the Board announced as the Group’s new incoming Chief Financial Officer in June 2026, will start in this role on 25 January 2027. Michael Fletcher started as Managing Director of Heron Foods on 2 November 2026

Financial Guidance

FY27 guidance introduced, with Group adjusted EBITDA⁵ (pre-IFRS 16) in a range of £450m – £500m (FY26: £459m) and Group adjusted PBT of £280m – £330m (FY26: £284m)

Headline measures	H1 FY27	H1 FY26	Change
Group revenue	£2,848m	£2,749m	3.6%
Group adjusted EBITDA (pre-IFRS 16)⁵	£203m	£191m	6.0%
Group adjusted EBITDA (pre-IFRS 16)⁵ margin %	7.1%	7.0%	16 bps
Group adjusted profit before tax⁵	£121m	£103m	16.6%
Group adjusted profit before tax⁵ margin %	4.2%	3.8%	47 bps
Adjusted diluted EPS⁵	8.9p	7.2p	24.3%
Group post-tax free cash flow⁶	£132m	£51m	158.1%
Net debt⁷	£613m	£859m	(28.7)%
Ordinary dividends	3.6p	3.5p	2.9%

Statutory measures	H1 FY27	H1 FY26	Change
Group operating profit	£186m	£149m	25.5%
Group profit before tax	£115m	£75m	53.7%
Statutory diluted EPS	8.3p	5.2p	59.1%
Group cash generated from operations	£344m	£293m	17.2%

Notes:

1	Constant currency comparison involves restating the prior year Euro revenues using the same exchange rate as that used to translate the current year Euro revenues.
2	One-year like-for-like revenues include each store’s revenue for that part of the current period that falls at least 14 months after it opened compared with its revenue for the corresponding part of FY26. This 14-month approach has been adopted as it excludes the 2-month halo period which new stores experience following opening.
3	References in this announcement to the B&M UK business include the B&M fascia stores in the UK except for the ‘B&M Express’ fascia stores. References in this announcement to the Heron Foods business include both the Heron Foods fascia and B&M Express fascia convenience stores in the UK.
4	Trading gross margin is considered to be a meaningful measure of profitability as it refers to the measure of gross margin used bymanagement to commercially run the business. It differs to the statutory definition for B&M UK, which increased 74 bps from 36.2%to 36.9%, reflecting higher General Merchandise category margins and positive mix benefit from General Merchandise sales participation.
5	Adjusted values are considered to be appropriate to exclude unusual, non-trading and/or non-recurring impacts on performance which therefore provides the user of the accounts with additional metrics to compare periods of account. See notes 3 and 4 of the financial information for further details.
6	Please see note 3 of the financial information for more details and reconciliation to the Consolidated statement of cash flows. Statutory Group cash generated from operations was £344m (H1 FY26: £293m). This statutory definition excludes payments for leased assets including the leasehold property estate.
7	Net debt comprises interest bearing loans and borrowings, overdrafts and cash and cash equivalents. Net debt was £613m at the half year end (H1 FY26: £859m), reflecting £996m (H1 FY26: £1,027m) gross cash debt netted against £383m of cash (H1 FY26: £168m). See note 8 of the financial information for more details.