B&M Value Retail H1 revenue rises on sharper pricing, UK growth 

Overview

• UK discount retailer's H1 revenue rose 3.6% yr/yr, with LFL growth in all segments

• Adjusted EBITDA for H1 rose 6% to £203 mln, margin up to 7.1%

• Company says 'Back to B&M Basics' strategy drove return to UK like-for-like growth

Outlook

• Company expects FY27 adjusted EBITDA of £450 mln-£500 mln, vs £459 mln in FY26

• Company sees FY27 adjusted profit before tax of £280 mln-£330 mln, vs £284 mln in FY26

• Early Golden Quarter trading has been positive in all operating businesses, with continued LFL growth at B&M UK

Result Drivers

• BACK TO BASICS STRATEGY - Co said sharper pricing, improved availability of key brands, stronger promotions, and reduced SKU count drove UK like-for-like sales growth

• GENERAL MERCHANDISE PERFORMANCE - UK sales growth in Q2 was led by General Merchandise, helped by an extended garden season and improved category margins

• FRANCE STORE EXPANSION - B&M France growth driven by new store openings and higher footfall, with market share gains

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the discount stores peer group is "buy."

• Wall Street's median 12-month price target for B&M European Value Retail PLC is GBp235.00, about 15.8% below its November 11 closing price of GBp279.00

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Nov 10 - UK retail spending shows modest growth ahead Black Friday, survey show

• Nov 10 - Sally Beauty Q4 sales slightly beat estimates on e-commerce growth

• Nov 10 - Britons bought more essentials after 'Be Ready' campaign launch, says Worldpanel

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)