B&M European Value Retail S.A. (BME.L), a retailer with discounts for variety goods, Tuesday reported higher revenues for the first half of its fiscal year 2026 primarily driven by B&M UK and B&M France results. Meanwhile, the company projects lower Group adjusted EBITDA for the period. The company also issued Group adjusted EBITDA outlook for fiscal 2026.
On the London Stock Exchange, the stock was down 7.49 percent to trade at 236.70 pence.
In its trading statement for the first half, the company's group revenue increased 4 percent year-over-year to 2.75 billion pounds in first half of the year,.
For the six-month period, B&M UK sales rose 3.5 percent to 2.20 billion pounds, and B&M France revenue spiked 13.4 percent to 0.28 billion pounds, while Heron Foods sales declined by 0.9 percent to 0.27 billion pounds.
B&M UK like-for-like or LFL sales grew 0.1 percent in first half with positive LFL volume and value growth in General Merchandise, offset by a decline in FMCG LFL sales.
In the second quarter, B&M UK revenues were up by 2.3 percent from last year to 1.07 billion pounds, and B&M France climbed 19.4 percent to 0.14 billion pounds. Meanwhile, Heron Foods sales declined by 1.4 percent 0.14 billion pounds.
Despite the growth in business, B&M UK LFL sales declined 1.1 percent in the second quarter, lower than the company's expectations.
Further, the company expects first-half Group adjusted EBITDA, pre-IFRS 16, to be approximately 198 million pounds, lower than 274 million pounds last year.
Looking ahead, for fiscal 2026, Group adjusted EBITDA, pre-IFRS 16, is likely to be in the range of 0.51-0.56 billion pounds.
In addition, the company stated that certain initiatives have been decided to enhance operational execution and accelerate like-for-like sales growth in B&M UK. The firm has reduced prices on 35 percent of Key Value Items, reducing the average of line price by 1.8 percent.
Further, the store managers can decide by choosing the products based on the needs within a broad framework, with Back-to-School ranges in September and Halloween ranges in September and October.
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