B&M European Value Retail S.A. (LSE:BME) reported modest sales growth in the third quarter, with group revenue up 2.9% year on year and 3.6% for the year to date. Trading benefited from strong seasonal demand and a return to like-for-like growth in the core B&M UK estate during December and early January.
Despite the improved sales momentum, the retailer reduced its full-year adjusted EBITDA guidance to a range of £440m–£475m, down from the previous £470m–£520m forecast. The downgrade reflects increased investment in price, an accelerated clearance of discontinued ranges and a broader stock clean-up as part of its “Back to B&M Basics” reset programme. Profitability at Heron Foods continues to lag expectations and the business remains under strategic review.
Operationally, B&M is pressing ahead with a wider rollout of SKU rationalisation and stock-availability initiatives following pilot trials. B&M France continues to deliver solid growth in a competitive retail environment, while the group is also implementing recommendations from an external review into a previously disclosed overseas freight cost systems issue. Management said these actions reinforce a renewed focus on operational discipline and financial controls, even as near-term margins remain under pressure.
Looking ahead, the outlook for B&M reflects a balance of strengths and challenges. Valuation metrics are supportive, with a low P/E ratio and an attractive dividend yield suggesting the shares may be undervalued. These positives are tempered by bearish technical signals, which point to potential short-term volatility. Financial performance remains stable overall, but continued attention to leverage and cash flow management will be important as the reset programme progresses.
More about B&M European Value Retail S.A.
B&M European Value Retail S.A. is a FTSE 250-listed variety goods value retailer operating 791 B&M-branded stores across the UK, 343 convenience outlets under the Heron Foods and B&M Express banners, and 146 B&M stores in France. Founded in 1978 and listed in London in 2014, the group specialises in discount general merchandise and fast-moving consumer goods, serving price-conscious consumers in the UK and French markets.
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