**Summary of B&M European Value Retail S.A. FY26 Interim Results (Unaudited)**
**Overview**
B&M European Value Retail S.A., the UKs leading variety goods value retailer, reported its interim results for the 26 weeks ending 27 September 2025. The Group is focused on its "Back to B&M Basics" plan to improve retail execution and restore financial performance, particularly in B&M UK. Despite challenges, the Group continues to expand its store presence in the UK and France, supporting revenue growth.
**Key Financial Highlights (H1 FY26 vs. H1 FY25):**
**Group Revenue** Increased by 4.0% to £2,749 million, driven by total value and volume growth in both B&M UK and France.
**Group Adjusted EBITDA (pre-IFRS 16)** Declined by 30.2% to £191 million, with a margin of 7.0% (down from 10.4%).
**Group Adjusted Operating Profit** Fell by 31.5% to £177 million, with a margin of 6.4% (down from 9.8%).
**Adjusted Diluted EPS** Decreased by 47.9% to 7.2p.
**Post-Tax Free Cash Flow** Reduced by 29.5% to £51 million.
**Net Debt** Increased by 9.1% to £859 million.
**Interim Dividend** Reduced by 34.0% to 3.5p per share.
**Operational Highlights**
**B&M UK** Total sales grew by 3.5%, with like-for-like (LFL) sales up 0.1%. General Merchandise saw positive volume and value LFL sales, while FMCG LFL sales declined.
**Store Expansion** Opened 31 gross and 15 net new stores across the Group, including 23 gross and 9 net in B&M UK, 5 gross and 5 net in B&M France, and 3 gross and 1 net in Heron.
**B&M France** Revenue increased by 13.4% to £280 million, with LFL sales up 5.2%.
**Heron Foods** Revenue declined by 0.9% to £273 million, with LFL sales down due to lower transaction numbers.
**Strategic Initiatives**
**Back to B&M Basics Plan** Focused on improving price competitiveness, promotions, range optimization, and on-shelf availability.
**Price Adjustments** Cut prices on 35% of FMCG Key Value Items (KVIs), lowering average KVI line prices by 1.8%.
**Promotions** Revamped Managers Specials to bring excitement and value to front-of-store bays.
**Range Optimization** Reducing SKU count and accelerating clearance of discontinued ranges, particularly in FMCG, home accessories, and toys.
**On-Shelf Availability** Piloting initiatives to improve FMCG best seller availability, targeting 98% from the current 86%.
**Leadership Changes**
Appointed Simon Hathway as Group Trading Director and Helen Cowing as Interim Chief Financial Officer.
Consolidated Supply Chain and Retail Operations under Jon Parry for a simpler, more cohesive structure.
**Outlook**
Reiterated FY26 Group adjusted EBITDA (pre-IFRS 16) guidance of £470m-£520m.
Expects B&M UK LFL sales to be the primary driver of FY26 performance.
Aims to restore sustainable LFL sales growth in B&M UK and stabilize EBITDA margins at low double-digit levels in the medium term.
**Capital Allocation**
Focused on reinvesting in the business for organic growth and maintaining competitive position.
Plans to return excess capital via share buybacks following redomicile to Jersey, subject to shareholder approvals.
**Challenges**
UK consumer pressure from cost-of-living concerns and fiscal uncertainty.
Ongoing review of freight cost recognition issues, with updates expected in Q3 Trading Update in January 2026.
**Conclusion**
B&M is executing its "Back to B&M Basics" plan to address operational inefficiencies and restore financial performance. While H1 FY26 results reflect ongoing challenges, the Group remains confident in its long-term growth prospects, supported by store expansion, strategic initiatives, and disciplined capital allocation.
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Group revenue (£'m) | 2,749 | 2,644 | 4.0% |
| Group adjusted EBITDA (pre-IFRS 16) (£'m) | 191 | 274 | (30.2)% |
| Group adjusted EBITDA (pre-IFRS 16) margin (%) | 7.0% | 10.4% | (341)bps |
| Group adjusted operating profit (£'m) | 177 | 258 | (31.5)% |
| Group adjusted operating profit margin (%) | 6.4% | 9.8% | (334)bps |
| Adjusted diluted EPS (pence) | 7.2 | 13.7 | (47.9)% |
| Group post-tax free cash flow (£'m) | 51 | 73 | (29.5)% |
| Net debt (£'m) | 859 | 788 | 9.1% |
| Net debt to adjusted EBITDA (pre-IFRS 16) leverage ratio | 1.6x | 1.2x |