Photographer: Chris Ratcliffe/Bloomberg
Shares in B&M European Value Retail sprang higher on Tuesday after releasing a rare set of reassuring financials for the last financial year.
At 310.5p per share, the discount retailer was up 3.8% in daily trading, making it the third-biggest gainer on the FTSE 250.
Sales for the 52 weeks to March 29 came in at £5.6 billion, B&M said. This was up 3.7% on a reported basis, and 4% at constant currencies.
At B&M UK — a unit responsible for around 80% of group turnover — like-for-like sales dropped 3.1% year on year. But at B&M France they increased 2.6% over the period.
The retailer said that “revenue growth from new store performance and positive like-for-like sales in France [offset] negative like-for-like performance in B&M UK and Heron Foods.”
As a consequence, B&M said it expects adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the full year “to be above the midpoint of our £605 million – £625 million guidance range.”
Adjusted EBITDA was £629 million in the prior financial year.
The company said that the 45 stores it opened last year are performing in line with expectations and delivering strong returns. It plans to open the same number of new outlets in the current fiscal year.
It cut the ribbon on 11 new B&M France stores in financial 2025, and on 14 Heron Food outlets.
Statement Provides Some Respite
B&M’s robust statement has provided a rare moment of cheer in what’s proved a torrid year for the discount retailer.
It has issued a series of profit warnings in recent months as it struggles with subdued consumer spending. In February, chief executive Alex Russo announced he would be leaving the company this month after less than three months as its head.
B&M was demoted from the FTSE 100 at the end of last year.
Trading continues to be tough in Britain, and like-for-like sales at B&M UK reversed 1.8% during the 12 weeks to March 22, the company said. Corresponding sales in France were up 3.2%.
B&M said it used a 12-week period due to the distorting effect from the Easter weekend falling in the final week of financial 2024.
Mixed Bag
Analyst Adam Vettese of eToro said that B&M’s full-year update “paints a picture of resilience amid a challenging retail landscape,” though he added that “it’s not without its cracks.”
He said that the update “signals operational discipline and margin strength, [which is] particularly impressive given inflationary pressures and consumer caution.”
Vettese described France as the company’s “standout performer,” and suggested that the less-saturated value retail market on the other side of the English Channel is providing a boost to sales.
While conditions in the UK are stable, he said that “B&M is leaning heavily on new store openings and international expansion to drive top-line growth, which carries execution risks.”
Vettese added that “the lack of upward revision to full-year guidance [is] perhaps a nod to looming economic headwinds or intensifying competition,” along with “potential implications of tariffs on UK or EU policy.”
