B&M European Value Retail S.A. (BME.L), a retailer with discounts for variety goods, cut its financial guidance for fiscal year 2026 following a freight cost adjustment. Additionally, the Group announced that Chief Financial Officer Mike Schmidt will step down. A search for his successor is underway, and Schmidt will remain with the company until a replacement is appointed to ensure a smooth transition.
Group Adjusted EBITDA (pre-IFRS 16) for fiscal year 2026 is now expected to be in the range of 470 million pounds to 520 million pounds, down from the previous estimate of 510 million pounds to 560 million pounds.
For the first half of fiscal year 2026, the Group anticipates reporting Adjusted EBITDA (pre-IFRS 16) of approximately 191 million pounds, compared to prior guidance of 198 million pounds.
B&M UK's like-for-like sales are expected to be the principal driver of performance within this range, with the Group reaffirming its assumption of second-half UK LFL growth between low-single-digit negative and low-single-digit positive levels.
The revised outlook follows the identification of approximately 7 million pounds in overseas freight costs that were not correctly recognized in cost of goods sold. This discrepancy emerged during the half-year results consolidation process and was linked to an operating system update earlier in the year. While the underlying system issue has since been resolved, its financial impact is material to FY26 projections.
Despite the adjustment, the Group continues to expect that, with sustained LFL growth, future adjusted EBITDA margins for B&M UK can stabilize at low-double-digit percentage levels over the medium term.
In response to the issue, the Board intends to commission a comprehensive third-party review to ensure robust financial controls and reporting accuracy going forward.
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