B&M’s annual results posted today confirm it was a difficult year for the discounter after it struggled to keep attracting cash-strapped shoppers to its growing chain of stores.
The group’s adjusted EBITDA grew a mere 0.6% to £620m over the 12 months to 29 March 2025, with adjusted operating profit slipping 1.8% to £591m.
Driven mainly by new store openings and strong performance in the French market, full-year sales increased 3.7% to £5.71bn. However, this was below expectations as its core business faced “challenging market headwinds”.
The B&M UK unit saw like-for-like sales decline 3.1%, falling short of internal targets due to softness in FMCG categories. Total sales in its 777 stores rose 3.8%, driven by the addition of 45 new outlets during the year.
The company noted that recent initiatives at B&M UK were focusing on product ranging, in-store merchandising, and space allocation in key categories like cleaning, health & beauty, and food to strengthen future performance. In contrast, performance in its general merchandise categories was more robust, with LFL volume and total volume gains helping drive the group’s gross margin up 42 bps to 36.7%.
Elsewhere, the B&M France fascia delivered a solid performance, with a total revenue increase of 7.8% (+2.6% LFL1), driven by positive customer transaction numbers and new stores.
Meanwhile, sales at its 343-strong Heron Foods convenience store chain slipped 0.6% against tough prior-year comparatives and a “difficult market backdrop” impacting its customer base.
Looking ahead, B&M noted that the underlying market trend towards discount retail was continuing, and its value proposition will continue to resonate with consumers navigating ongoing economic pressures. It expects positive results from its initiatives to address its underperformance in FMCG categories and drive average selling prices in general merchandise, alongside continued store expansion in the UK and France, with another 45 openings planned.
Meanwhile, the group acknowledged that it was facing challenges of increased minimum wage costs, higher employee national insurance and other taxes, and inflation on input costs. “Work continues to reduce the impact of these pressures through driving productivity improvements and sales volume growth”, it said.
“With a robust model, clear growth pathways, and targeted strategic initiatives, the group is strongly positioned to capitalise on market opportunities and generate significant long-term value for shareholders through disciplined growth and continued cash generation.”
Last month, B&M announced the appointment of industry veteran Tjeerd Jegen as its new Chief Executive. He has broad international retail experience, having worked in leadership roles at Ahold Delhaize, Metro, Tesco, Woolworths, HEMA and Takko Fashion over the last 25 years. Jegen will take up the position on 16th June, replacing interim CEO Mike Schmidt, who stepped into the role when Alex Russo departed at the end of April.
NAM Implications:
- Despite disappointing results..
- …and tax increases to come.
- B&M is still the right model at the right time.
- It’s not over yet…
