London · Delayed Price · Currency is GBP · Price in GBX B&M European Value Retail Earnings Call Transcripts
Fiscal Year 2026
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Adjusted EBITDA reached £459m amid margin and cost pressures, with revenue up 3.6% year-over-year. Strong cash flow and leverage within target support investment and dividends, while France and Heron Foods delivered robust growth. Margin recovery and cost control are key focuses for FY 2027.
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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 grew 3.7% to £5.6bn, driven by new stores, while like-for-like sales declined 3.1%. Profitability remained resilient with adjusted EBITDA up to £620m and strong cash generation. Cost headwinds are expected in 2026, but efficiency measures and store expansion underpin a positive outlook.
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Exited the golden quarter with strong profitability, positive LFL sales, and robust cash generation. Strategic price investments in key categories drove double-digit growth, while FMCG inflation remained at zero, supporting volume gains. Guidance targets the top half of the profit range.
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Adjusted EBITDA rose 2% to £274m on 3.7% revenue growth, driven by disciplined cost control and volume-led strategy. Guidance for full-year EBITDA is £620–660m, with 45 UK and 11+ France store openings planned. Share buybacks and increased dividends highlight strong cash returns.
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Sales grew 2.4% overall, with France nearly double-digit LFL and UK flat after weather adjustments. Gross margin was stable, inventory lean, and new store openings on track. Management remains confident in positive full-year LFL and EBITDA margin guidance of 12%-13%.
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.