Shares of Liverpool-based B&M European Value Retail plc rose as much as 15% on Wednesday after it published results for the 52 weeks to March 28, 2026, showing that revenues increased 3.6% to £5.775 billion.
Statutory profit before tax fell 47.3% to £227 million, including an impairment charge of £36 million versus £3 million in FY25.
Ordinary dividends fell 36% to 9.6p per share.
“The redomicile of our group from Luxembourg to Jersey was completed on 27 February 2026, which simplifies our administrative processes and will enable greater flexibility in returning capital to shareholders, including share buybacks when excess cash is available,” said the Liverpool-headquartered firm.
B&M CEO Tjeerd Jegen said: “FY26 was a difficult year that saw profits fall due to a challenging market and execution issues.
“We launched our Back to B&M Basics plan in October to restore like-for-like sales growth at B&M UK, which was flat overall versus FY25 while showing sequential improvement.
“The past six months has seen us sharpen our pricing, improve on-shelf availability in best-selling brands and revamp our in-store promotions.
“We cleared discontinued lines well in Q4 and are now embarking on SKU count reductions across all our FMCG categories. Cash conversion remained strong in FY26 and net debt has fallen, returning Group leverage back within our 1.0 to 1.5x target range, and I am pleased to report adjusted EBITDA (pre-IFRS 16) at the midpoint of our current guidance.
“FY27 remains a year of investment as we work hard to deliver growth under Back to B&M Basics and balance new store growth with investing in our store formats under Phase 2 of our strategic plan.
“We are confident we can offset rising energy costs in the year ahead through cost mitigation, the benefits of which will flow through to our bottom line once we have returned B&M UK like-for-like sales to growth. In the medium term, we continue to see no reason why B&M UK cannot return to double-digit EBITDA margins.”
On current trading and outlook, the CEO said: “In B&M UK, we experienced a slower start to our garden season compared with last year, when unusually early warm weather drove double-digit LFL sales in April 2025. Better weather in late May this year has since driven a recovery in sales of seasonal categories.
“B&M France has made a good start to FY27, with higher footfall and market share driving positive LFLs. Heron LFL sales have made a positive start to the year and we continue to make improvements to in-store merchandising and ranging to bring about a broader recovery in Heron’s sales performance.
“FY26 underscored the importance of a cost-out mindset. One certainty of retail is that costs will always rise. In the past year, it was statutory costs in wages and environmental charges that challenged us. In the year ahead, the Middle East conflict will place upward pressure on our international freight, fuel and energy costs.
“We are confident we have sufficient levers to offset this impact with cost mitigation. Over time, these benefits will flow through to our bottom line once we have returned B&M UK LFL sales to growth. In the medium term, we continue to see no reason why B&M UK cannot return to double-digit EBITDA margins.
“For our customers, value retailing has a vital role to play as cost-of-living pressures intensify. B&M stands ready to serve our current loyal customers alongside new ones as more people discover both the benefits and delights our stores can offer.
“Longer term, I strongly believe that the discount segment will continue to grow, both in the UK and in Continental Europe. B&M is well positioned to be a leading beneficiary of this. Our focus right now is ensuring we continue to prepare B&M for that growth opportunity and the benefits it offers all our stakeholders.”