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B&M European Value Retail Delivers Solid FY25 Performance

Why we think this is good

The trading update from B&M European Value Retail indicates the retailer delivered a solid performance in FY25, with Group revenues increasing 3.7% and adjusted EBITDA expected to be above the midpoint of guidance. While the company faced some near-term headwinds in its B&M UK and Heron Foods divisions, the overall results were positive, with strong cash generation and an attractive valuation. The retailer's focus on cost discipline and shareholder returns is also a positive sign.

Key Points

  • Group revenues of £5.6bn, up 3.7% year-over-year
  • Adjusted EBITDA expected to be above the midpoint of £605m-£625m guidance range
  • Positive like-for-like sales in France, offsetting negative performance in the UK
  • Opened 45 new B&M UK stores, with a robust pipeline for next year
  • Leverage expected to be close to the mid-point of the 1.0-1.5x target range
  • Progressing with a redomicile process to enable greater flexibility in returning capital to shareholders

Summary

The retailer delivered solid FY25 results, with Group revenues up 3.7% and adjusted EBITDA expected to exceed guidance, despite facing some near-term headwinds in certain divisions.

B&M European Value Retail S.A. reported its FY25 trading update, with Group revenues of £5.6bn, up 3.7% year-over-year, and adjusted EBITDA expected to be above the midpoint of the £605m-£625m guidance range. The company saw positive like-for-like sales in France, offsetting negative performance in the UK. B&M UK opened 45 new stores during the year, and the company continues to make progress in France and Heron Foods. Leverage is expected to be close to the mid-point of the target 1.0-1.5x range, and the company is progressing with a redomicile process to enable greater flexibility in returning capital to shareholders.

Key Dates

4th June 2025
Preliminary Results Announcement
TRADING UPDATE