B&M European Value Retail S.A. (LSE:BME) has revised its financial outlook for FY26 after identifying an error in accounting for £7 million of overseas freight costs. As a result, the company now expects Group Adjusted EBITDA in the range of £470 million to £520 million, down from the previously guided £510 million to £560 million.
In addition, CFO Mike Schmidt has announced his decision to step down, with a search underway for his successor. The company will also launch an independent third-party review to strengthen its financial oversight processes following the accounting issue.
Despite this setback, B&M’s investment case remains supported by favorable valuation metrics, including a low P/E ratio and a high dividend yield, indicating potential undervaluation. Financial performance continues to show strong cash generation, though high leverage and slowing free cash flow growth pose ongoing risks. Technical indicators point to a bearish trend, but with room for a possible rebound.
About B&M European Value Retail S.A.
B&M is a leading variety retailer operating 786 stores in the UK under the “B&M” brand, 344 stores under the “Heron Foods” and “B&M Express” brands, and 140 stores in France under the “B&M” banner. Established in 1978, the company has been listed on the London Stock Exchange since June 2014.
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