B&M European Value Retail S.A.

FY2025 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 versus the prior year, and gross margin improved to 37.6% from 37.1%. EPS was 33.5p compared with 35.9p last year. Like-for-like sales were down 3.1% for the full year, and Q4 underlying like-for-like sales were down 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 FY2026, management did not give formal profit guidance, said it does not guide this early in the year, and said it will return with an outlook range around the interims; it also said B&M UK faces GBP 75 million of additional cost pressure from National Insurance, minimum wage, and EPR packaging taxes, which it will work to offset.

The CEO-designate, Tjeerd Jegen, had not yet started, so Mike Schmidt effectively framed the strategic message. Management said the core investment case remains intact: a strong value proposition, an advantaged cost base, a capital-light model, and attractive returns on capital above 30%. The tone was confident but candid, acknowledging that like-for-like underperformance was disappointing and partly fixable through execution changes.

Mike Schmidt emphasized resilient profit delivery and strong cash discipline. He pointed to GBP 620 million of adjusted EBITDA before IFRS 16, GBP 311 million of post-tax free cash flow, GBP 111 million of capex versus GBP 124 million last year, and leverage of 1.26x, which he described as comfortably within the group’s conservative range. He also noted that EPS declined to 33.5p from 35.9p because of depreciation on a larger asset base and higher interest rates, and said debt maturities have been extended, helping stabilize that trend.

Analysts pressed management on whether the new CEO might trigger a major profit or price reset; Schmidt said there is nothing to read into the lack of current-trading commentary and that the business has the right foundations, while the new CEO will develop his own view after induction. Questions on FY2026 profit and margin guidance were met with a refusal to give formal guidance this early, though management said consensus is broadly in line with how it is thinking and that the business always plans for positive like-for-like sales. On pricing and ASPs, management said it intentionally passed value back to customers in general merchandise last year, but now sees room to rebuild ASPs through a broader, good-better-best range without abandoning entry price points.