B&M European Value Retail S.A.

Reported FY25 revenue was GBP 5.6 billion, up 3.7% year on year. Group adjusted EBITDA before IFRS 16 was GBP 620 million, up GBP 4 million, and EPS was 33.5p versus 35.9p last year. Gross profit margin increased to 37.6% from 37.1%. Like-for-like sales were down 3.1% for the full year, with Q4 underlying like-for-like sales at minus 1.8%. Post-tax free cash flow was GBP 311 million, net debt to EBITDA was 1.26x, and the full-year dividend was 15p per share after a 9.7p final dividend. For FY26, management did not give formal profit guidance, but said consensus around GBP 621 million EBITDA was broadly consistent with expectations, that they plan for positive like-for-like sales, and that B&M U.K. faces GBP 75 million of additional cost pressure from National Insurance, minimum wage and EPR packaging taxes.

There was no CEO on the call; CFO Mike Schmidt and the wider management team led the discussion. Management’s strategic message was that the business remains fundamentally attractive because of its value proposition, capital-light model, strong returns on capital and cash generation. They said the key task is fixing the drivers of underperformance rather than changing the core model, and stressed that the incoming CEO will review the business after joining.

Mike Schmidt emphasized resilient profit delivery despite weak like-for-likes, pointing to GBP 620 million adjusted EBITDA before IFRS 16, GBP 311 million post-tax free cash flow, 1.26x leverage, and ROCE of 30.4%. He also noted EPS fell to 33.5p from 35.9p due to a larger asset base and higher interest rates, though he expects that divergence to stabilize after debt maturity extension. On capital allocation, he highlighted the final dividend of 9.7p, full-year dividend of 15p, GBP 2.1 billion returned over five years, and said the Jersey redomicile should simplify operations, lower costs, and potentially enable buybacks.

Analysts pressed management on whether the new CEO could trigger a profit or price reset; Schmidt said there was no reason to read anything negative into the transition and that the current model and price positioning remain strong. Multiple questions focused on FY26 guidance and margin pressure: management declined to give an outlook range this early, but said they plan for positive like-for-like sales and are working to offset GBP 75 million of U.K. cost headwinds. The Q&A also dug into ASP strategy in general merchandise, with management explaining they want to rebuild higher-price-point options in the range while keeping entry price points intact, and into the 45-gross-store rollout, with some new sites coming from Wilko, Homebase and co-op-type locations.