B&m European Value Retail Plc · LSE:BME
B&m European Value Retail — FY2025 Earnings Presentation
25 slides from B&m European Value Retail's earnings presentation, 2025
Slide 1: FY25 Results Presentation
B&M European Value Retail S.A. FY25 Results Presentation 52 weeks to 29 March 2025
Slide 2: Agenda
Agenda 1 Introduction 2 Financials 3 Operational review 4 Q&A 2
Slide 3: Introduction
Introduction Mike Schmidt CFO & Interim CEO
Slide 4: Summary
Summary Negative LFL revenues - below our expectations - £5,571m £620m driven by market environment and our execution Group revenue1 Group adjusted EBITDA1 +3.7% YoY +0.6% YoY Positive revenue growth with new stores performing as expected 1.26x 15.0p Resilient profit and gross profit Leverage ratio
Slide 5: Financials
Financials Mike Schmidt CFO & Interim CEO
Slide 6: Summary profit and loss
Summary profit and loss FY24 YoY FY24 £m FY25 (52 weeks) (52 weeks) (53 weeks) Key highlights Revenue 5,571 5,372 3.7% 5,484 Adjusted EBITDA (pre-IFRS 16)1 620 616 0.6% 629 Revenue underpinned by new stores % 11.1% 11.5% (35) bps 11.5% with negative LFL in UK Depreciation and amortisation (92) (80)
Slide 7: Store rollout drove total revenue growth
Store rollout drove total revenue growth Year-on-year revenue progression (£m) 40 Key highlights 5,571 23 260 5,484 (2) New space adding 6.9% sales growth (3) in B&M UK 5,372 LFL performance improved in the (112) second half of the year Q3 -2.8% and Q4 -1.8% Performance in FMCG was below (119) inter
Slide 8: Robust gross profit margin performance
Robust gross profit margin performance Year-on-year gross margin progression (%) Key highlights 0.1% 37.6% 0.4% Good B&M UK trading margin out-turn of +42ps year-on-year: • Primarily driven by mix 37.1% Factory gate price, transport cost and FX benefits passed back to customers B&M France and Heron
Slide 9: Adjusted EBITDA (pre-IFRS 16)
Adjusted EBITDA (pre-IFRS 16) Group (£m) B&M UK (£m) 620 545 545 Key highlights 616 Group adjusted EBITDA1,2 increased 0.6% B&M UK’s adjusted EBITDA1 45bps 11.5% 11.1% 12.6% 12.2% lower due to negative LFL performance and increase in operating FY24 (52w) FY25 FY24 (52w) FY25 costs B&M France (£m) He
Slide 10: Adjusted underlying operating costs
Adjusted underlying operating costs Group1,2,3 (£m) B&M UK1,3 (£m) 24.0% of sales 25.0% of sales Key highlights 1,463 1,122 1,365 1,039 B&M UK underlying costs3 increased by 8.0% on a comparable basis YoY primarily due to the increased store +7.2% YoY +8.0% YoY estate (+6.9% additional sales) Increa
Slide 11: Continued cash discipline
Continued cash discipline Cash flow overview (£m) Capex development (£m) FY24 Maintenance FY25 (53 weeks) Infrastructure and freehold EBITDA (IFRS 16) 841 865 New stores 124 Change in working capital (64) (7) 111 Other 7 4 59 Cash generated from operations 784 862 53 Income tax paid (109) (116) 31 N
Slide 12: Operational review
Operational review Presenters: Mike Schmidt, CFO & Interim CEO Gareth Bilton, Trading Director Jon Parry, Supply Chain Director James Kew, Retail Director
Slide 13: FY25 reflections
FY25 reflections Negative LFL driven by environment, 1 FMCG execution and GM ASP deflation Actions being implemented in Q1 FY26 2 to drive LFL performance 3 New stores performing well Supply chain infrastructure continues 4 to be strengthened 5 Fundamentals unchanged 13
Slide 14: FY25 like-for-like performance
FY25 like-for-like performance B&M UK FY25 FMCG B&M UK FY25 GM Key highlights LFL performance LFL performance Very poor start to FY25 trading year, impacted by Spring weather and Easter timing Low consumer confidence, particularly for lower Unit income groups Volume FMCG total revenues positive but
Slide 15: Our customer demographic
Our customer demographic B&M customer profile by annual credit turnover (12 months – March 2025) 25% Key highlights Our core customer is someone from a 20% lower-income household who seeks out value • % of total unique customers We weight towards the lower income 15% customer groups (60% < £40k) vs.
Slide 16: Our customer's mission
Our customer’s mission Estimated sales breakdown by category – Kantar Worldpanel Plus 5.6% Key highlights 13.2% 22.9% 41.7% We have a different proposition and serve different needs for customers than other broad UK retailers 94.4% 86.8% 77.1% 58.3% B&M’s GM categories account for five of the top te
Slide 17: Price position & value perception
Price position & value perception B&M’s value perception remains strong with customers 70.0 Key highlights 60.0 Price gaps have remained unchanged despite increased marketing emphasis Discount grocers1 50.0 from competitors 40.0 15-20% gap against the traditional B&M grocers (post-loyalty schemes) C
Slide 18: FMCG in-store execution actions
FMCG in-store execution actions FY26 actions – 145,000 FMCG bays moved across 750+ stores in the B&M UK Estate Health & Beauty Cleaning Food • Full visual merchandising reset & range • 25-30% more space – let the • Relay and SKU rationalisation reduction to become easier to shop range breathe • Addi
Slide 19: General Merchandise price architecture actions
General Merchandise price architecture actions FY25 – a year of deflation • Our price gap in GM is typically larger than in FMCG. Value gaps of at least 20% targeted against industry benchmark • From Q2 onwards we deflated selling prices on products across Housewares, Home textiles, Indoor furniture
Slide 20: Supply chain strengthening continues
Supply chain strengthening continues Ellesmere Port: Import Centre Network productivity & efficiency • Provides efficient GM stockholding capacity upstream • Automated container unloading driving inbound • Enables greater productivity and case throughput capacity hours reduction • Control over netwo
Slide 21: Retail operation focus on driving sales and customer experience
Retail operation focus on driving sales and customer experience Average store standards scores have improved Key highlights 3.5K visits 14.6k visits 17.7k visits Strong store standards deliver clear benefits for our customers. • Available • Clean 7.3 7.8 8.0 • Ticketed FY23 FY24 FY25 Store standards
Slide 22: B&M UK new stores
B&M UK new stores Key highlights Disciplined geographical distribution of new openings 45 gross (36 net) new stores opened in FY25 Expect 45 gross new stores in FY26 FY23 – FY25 openings average payback of < 12 months New store performance in varying locations & formats provides confidence Target of
Slide 23: B&M France and Heron progress update
B&M France and Heron progress update B&M France Heron Foods • Continued progress with customers driving LFL, despite ASP • Negative LFL and total revenue performance, following two deflation in GM years of exceptional growth. Revenue 32.8% higher than FY22 • 11 new store openings across the country
Slide 24: Recap
Recap FY25 was a year with challenges Profitable, sustainable growth approach Market headwinds from weather, Easter and Volume led growth from LFL and new stores the consumer - FY26 LFL actions underway Performance impacted by our FMCG execution Significant potential ahead and GM deflation Relentles
Slide 25: Q&A
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