Corrected: B&M Value Retail's prelim FY26 sales rise on new store growth

B&M European Value Retail

03/06/2026 07:09

Corrects FY UK LFL Sales Growth to -0.1% from 3.40% in Key Details table

Overview
UK variety goods retailer's preliminary FY26 revenue rose 3.6% on new store growth
Adjusted EBITDA fell 25.9% as trading margins and operating costs weighed on profits
Company launched 'Back to B&M Basics' plan after flat UK like-for-like sales and execution issues

Outlook
Company expects to offset rising energy and freight costs through cost mitigation in FY27
B&M UK aims to return to double-digit EBITDA margins in the medium term
Company to provide adjusted profit before tax guidance with FY27 interim results

Result Drivers
LOWER MARGINS & COST INFLATION - Profitability was hit by lower trading margins and higher operating costs, driven by statutory wage hikes, new environmental levies, and increased insurance contributions, especially in the UK
FLAT UK SALES & EXECUTION ISSUES - UK like-for-like sales were flat, as execution issues prompted the launch of the 'Back to B&M Basics' plan to restore growth, sharpen pricing, and improve in-store availability
FRANCE GROWTH OFFSET WEAK UK & HERON - Strong revenue and market share gains in France helped offset weak UK and Heron Foods performance

Company press release: ID:nRSC7375Ga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
 
GBP 5.78 bln
 
FY Adjusted EBITDA
 
GBP 459 mln
 
FY Adjusted EBITDA Margin
 
8.00%
 
FY Adjusted Pretax Profit
 
GBP 284 mln
 
FY Pretax Profit
 
GBP 227 mln
 
FY Revenue Growth At Constant Currency
 
3.40%
 
FY UK LFL Sales Growth
 
-0.1%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the discount stores peer group is "buy"
Wall Street's median 12-month price target for B&M European Value Retail PLC is GBp230.00, about 34.9% above its June 2 closing price of GBp170.50
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)