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
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Adjusted EBITDA | GBP 203 mln | ||
H1 Adjusted Pretax Profit | GBP 121 mln | ||
H1 Pretax Profit | GBP 115 mln |
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
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(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.)