London · Delayed Price · Currency is GBP · Price in GBX B&M European Value Retail Earnings Call Transcripts
Fiscal Year 2026
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Q3 saw a strong December recovery and positive momentum into January, but FY 2026 EBITDA guidance was lowered due to price investments, clearance activity, and Heron Foods' underperformance. Strategic initiatives in SKU rationalization and availability are underway to drive sustainable growth.
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H1 saw 4% revenue growth but a sharp EBITDA decline due to UK margin pressures and cost inflation. The "Back to B&M Basics" plan aims to restore UK like-for-like growth and margins, with new management and store expansion supporting long-term optimism.
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Group revenues rose 4% to £2.75bn, but UK like-for-like sales were flat in H1 and declined in Q2. A comprehensive operational reset is underway to restore growth, with full-year EBITDA guidance at £510m–£560m and margin stabilization expected at FY26 levels.
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Q1 FY2026 group revenues rose 4.4% to £1.4bn, with UK and France both posting like-for-like sales growth. Trading margin declined due to lower-margin seasonal buys but is expected to recover in H2. A comprehensive improvement plan will be shared at the H1 update.
Fiscal Year 2025
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Revenue rose 3.7% to £5.6bn, driven by new stores, while like-for-like sales fell 3.1%. Profitability remained resilient with higher gross margins and strong cash generation, supporting increased dividends and continued expansion plans.
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Exited the golden quarter with strong profitability, positive LFL sales, and robust cash generation. Strategic price investments drove volume and market share, with no inflation in FMCG and continued disciplined expansion in the UK and France.
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Adjusted EBITDA rose 2% to £274m on 3.7% revenue growth, driven by volume and new stores, with stable margins and strong cash returns. Price leadership and disciplined cost control underpin guidance of £620–660m EBITDA for the year, with share buybacks underway.
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Total sales grew 2.4% with France delivering strong like-for-like growth and the UK maintaining profitability despite weather challenges. General Merchandise and Home outperformed, gross margin remained robust, and management is confident in a positive full-year outlook.
Fiscal Year 2024
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Revenue grew 10.1% year-over-year, with adjusted EBITDA up 9.7% and strong cash generation. Store expansion and disciplined cost control supported high margins, while aggressive pricing and sourcing are set to drive further growth, especially in general merchandise.