B&M European Value Retail, the UK’s leading discount goods value retailer, has announced respectable results for the 52-week period ending 29 March 2025, with revenues rising to £5.6 billion.
The company is an obvious choice for investors when the economic going gets tough due to their focus on the more thrifty consumer. Today’s results validate his thesis.
B&M said that adjusted EBITDA is expected to exceed the midpoint of its previously stated guidance range of £605m-£625m, helping to send shares over 7% higher in very early trade on Tuesday.
Over the year, group revenues increased by 3.7%, driven primarily by new store openings and positive LFL sales in France, which helped offset negative LFL performance in both B&M UK and Heron Foods.
B&M UK recorded a 3.8% year-on-year revenue increase to £4,483m, although this was accompanied by a negative LFL of 3.1% for the full year.
The fourth quarter may cause some mild concern with UK LFL at -1.8% for the 12-week period to 22 March 2025, and -2.4% for the full 13-week quarter. It appears even the budget shopper is tightening their spending habits. B&M will also not be immune to increased competition from other discounters Lidl and Aldi.
French operations were much stronger with a 7.8% revenue increase and positive LFL growth of 2.6% for the full year. B&M France saw revenue growth of 9.1% for the quarter.
B&M UK volumes were encouraging. General merchandise sales values and unit volumes increased in Q4, both on a like-for-like and total basis. Growth was particularly strong across Garden, Toys, Paint and Stationery categories, which underpinned the overall performance.
However, Fast-Moving Consumer Goods (FMCG) delivered negative LFL results, despite achieving positive total sales value and volume growth. The company stated that “actions are underway to improve FMCG LFL performance,” suggesting targeted strategies to bolster the category.
In line with previous guidance, B&M opened 45 gross new UK stores during the year, which the company reports are “performing in line with our expectations and are generating strong returns.” The Group maintains a robust pipeline for the coming year, with plans for another 45 gross new store openings.
Despite like-for-like softness, new store openings are driving growth, and B&M investors are evidently pleased with the company addressing poor performance in the UK.
B&M European Value Retail shares rose on Tuesday, but are still worth around half of their 2023 peak.