REG - B&M European - Q3 FY26 Trading Statement

B&M European Value Retail SAAnnouncement

Today 07:00

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RNS Number : 8647P  B&M European Value Retail S.A.  22 January 2026

B&M European Value Retail S.A.

Société Anonyme

Registered office: 3, rue Gabriel Lippmann, L-5365 Munsbach,

Grand-Duchy of Luxembourg

RCS Luxembourg B 187275

 

 (the "Company")

 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (EU) 596/2014 ("EU MAR") AND ARTICLE 7 OF THE
MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE
UNITED KINGDOM (THE "UK") BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018 ("UK MAR").

 

 

22 January 2026

 

Q3 FY26 Trading Statement

 

Positive December sales

Lowering guidance on deeper investment in our future growth

 

 

B&M European Value Retail S.A. ("the Group"), the UK's leading variety
goods value retailer, today provides a trading update for the third quarter
("Q3") of its current financial year ("FY26"), relating to the 13 week period
from 28 September 2025 to 27 December 2025.

 

Tjeerd Jegen, Chief Executive Officer, said:

"We entered our Golden Quarter sharper on price to reinforce our value
proposition with our customers. Price investment has continued, particularly
in FMCG, and while the full benefits will take time to come through, I am
encouraged by the early signs of like-for-like (LFL) sales growth at B&M
UK late in the quarter. This includes the strong sell through of our seasonal
ranges, which contributed to 3 percent UK LFL growth in December, with similar
LFL trends continuing in early January trading.

As we progress Back to B&M Basics, we are identifying opportunities to
make deeper investments in clearing discontinued lines to support planned
reductions in SKU count and to clean up stock as we restore on-shelf
availability towards industry benchmarks. As with our pricing actions, these
are investments in the long-term strength of B&M, but they do impact
near-term financial performance. As a result, we are revising our full-year
guidance downwards to reflect these actions and the financial underperformance
at Heron. We now expect FY26 Adjusted EBITDA (pre-IFRS 16) to be in the range
of £440m to £475m, compared with our previous guidance of £470m to £520m.

The reset we are driving through Back to B&M Basics is necessary to
rebuild the long-term value of the business and these workstreams continue to
progress at pace. Actions on FMCG SKU count and on-shelf availability are now
moving out of their initial pilot phases and towards implementation across all
stores later this year. I remain confident that the actions we are taking will
restore sustainable LFL growth at B&M UK over the next 12 to 18 months and
provide a strong foundation for future growth."

 

Highlights

 

                       Q3 FY26                  YTD FY26

 Revenue performance
                       £m      YoY%(1)  LFL %   £m      YoY%(1)  LFL %
 B&M UK(2)             1,413m  1.9%     (0.6)%  3,609m  2.9%     (0.2)%
 B&M France            186m    8.5%     0.4%    466m    10.7%    3.3%
 Heron Foods           138m    1.4%     (0.1)%  411m    (0.2)%   (1.8)%
 Group                 1,737m  2.9%     -       4,486m  3.6%     -

 

 

 ·             Group year-to-date (YTD) revenue grew 3.6% year-on-year (YoY) (3.3% constant
               currency(3)). Group Q3 revenue growth was 2.9% YoY (2.6% constant currency(3))

 ·             B&M UK delivered Q3 total revenue growth of 1.9% and like-for-like(4)
               (LFL) sales of (0.6)%, with positive LFL growth in December of 3.0% following
               low single-digit LFL declines in October and November. Early January trading
               has seen a positive LFL trend continue, with a good customer response to our
               clearance events across seasonal ranges and discontinued lines

 ·             Both FMCG and General Merchandise saw good seasonal range sell-through during
               Q3, with Seasonal Grocery, Giftware, Toys and Christmas ranges contributing to
               positive LFL(4) sales growth in December

 ·             B&M France continued to compete well during Q3 in a competitive market,
               with total revenue growth(1) of 8.5% and LFL(4) revenue growth of 0.4%

 ·             Heron Foods delivered Q3 total revenue growth of 1.4% and LFL sales of (0.1)%.
               Heron Foods' profit performance is below our expectations and a further review
               of its customer proposition is being conducted

 ·             B&M UK gross margin remained below prior year levels in Q3 as we continued
               to invest in price in a competitive FMCG marketplace. We expect this trend to
               continue in Q4 as we broaden the clearance of discontinued lines to enter FY27
               with sharper, more compelling ranges across our stores

 ·             Back to B&M Basics continues to move forward at pace. Results from the
               first three FMCG category pilots to reduce line count have informed a further
               four trials, which will start in February ahead of commencing a full rollout
               to the entire UK estate in Q1 FY27. Early results from our stock availability
               trials are helping us to improve the quality of our stock records, which we
               continue to adjust in support of our ongoing activities to clear discontinued
               lines

 ·             On 27 October 2025, the Board engaged EY to undertake a comprehensive
               third-party review of the IT systems and balance sheet controls that resulted
               in the overseas freight costs systems issue (as announced on 20 October 2025).
               This investigation is now complete and the implementation of the report's
               recommendations on specific IT and Financial operational processes is
               underway

 

Outlook & Guidance

 

We are revising our financial guidance downwards and now expect FY26 Group
adjusted EBITDA (pre-IFRS 16) to be between £440m to £475m, versus our
previous guidance of £470m to £520m. The downward movement in range is
driven by ongoing investments in pricing and clearance, improvements in stock
quality and the financial underperformance of Heron Foods, where we continue
to review and reposition our customer offer. We remain confident the actions
we are taking can restore sustainable LFL growth at B&M UK over the next
12 to 18 months, which is an essential foundation of the Group's future
growth.

 

Notes:

 

1.     B&M France Q3 and YTD year-on-year total revenue growth % are
calculated in local currency.

2.     References in this announcement to the B&M business include the
B&M fascia stores in the UK except for the 'B&M Express' fascia
stores. References in this announcement to the Heron Foods business include
both the Heron Foods fascia and B&M Express fascia convenience stores in
the UK.

3.     Constant currency comparison involves restating the prior year Euro
revenues using the same exchange rate as that used to translate the current
year Euro revenues.

4.     One-year like-for-like revenues exclude wholesale revenues and
include each store's revenue for that part of the current period that falls at
least 14 months after it opened compared with its revenue for the
corresponding part of FY25. This 14-month approach has been adopted as it
excludes the 2-month halo period which new stores experience following
opening.

 

 

Investor Call

 

B&M Retail will host an investor call at 09:00 AM (GMT) today. The
registration link for the call is available here
(https://register-conf.media-server.com/register/BIbd0a97f41a024873b0d4e55a4703b291)
.

 

Enquiries

 

B&M European Value Retail S.A.

For further information please contact: +44 (0) 151 728 5400 Ext. 6363

Tjeerd Jegen, Chief Executive Officer

Andrew Orchard, Head of Investor Relations

Investor.relations@bandmretail.com

 

Media

For media please contact:

Sam Cartwright, H-advisors, sam.cartwright@h-advisors.global +44 (0) 7827 254
561

Jonathan Cook, H-advisors, jonathan.cook@h-advisors.global
(mailto:jonathan.cook@h-advisors.global) +44 (0) 7730 777 865

 

Disclaimer

 

This announcement contains statements which are or may be deemed to be
'forward-looking statements'. Forward-looking statements involve risks and
uncertainties because they relate to events and depend on events or
circumstances that may or may not occur in the future. All forward-looking
statements in this announcement reflect the Company's present view with
respect to future events as at the date of this announcement. Forward-looking
statements are not guarantees of future performance and actual results in
future periods may and often do differ materially from those expressed in
forward-looking statements. Except where required by law or the Listing Rules
of the UK Listing Authority, the Company undertakes no obligation to release
publicly the results of any revisions to any forward-looking statements in
this announcement that may occur due to any change in its expectations or to
reflect any events or circumstances arising after the date of this
announcement.

 

About B&M European Value Retail S.A.

 

B&M European Value Retail S.A. is a variety retailer with 791 stores in
the UK operating under the "B&M" brand, 343 stores under the "Heron Foods"
and "B&M Express" brands, and 146 stores in France also operating under
the "B&M" brand as at 27 December 2025. It is a constituent of the FTSE
250 index.

 

The B&M Group was founded in 1978 and listed on the London Stock Exchange
in June 2014. For more information, please visit www.bandmretail.com
(http://www.bandmretail.com)

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