B&m European Value Retail Plc · LSE:BME
B&m European Value Retail — FY2026 Earnings Presentation
28 slides from B&m European Value Retail's earnings presentation, Jun 3, 2026
Slide 1: B&M European Value Retail plc FY26 Results Presentation
B&M European Value Retail plc FY26 Results Presentation 3 June 2026
Slide 2: Introduction
Introduction Tjeerd Jegen Chief Executive Officer
Slide 3: Key highlights
Key highlights FY26 profit delivery at midpoint of current guidance, leverage back within target range Implementation of Back to B&M Basics well advanced, early indicators encouraging Phase 2 initiatives underway, balancing new store rollout with investments in existing estate France performing well
Slide 4: FY26 Financial Performance
FY26 Financial Performance Peter Waterhouse Interim Chief Financial Officer
Slide 5: FY26 profit at midpoint of current guidance, leverage in range
FY26 profit at midpoint of current guidance, leverage in range Total revenue growth of 3.6%, driven by new £5,775m £459m stores growth in B&M UK and France Group revenue Group adjusted EBITDA1 FY25: £5,571m FY25: £620m Flat like-for-like sales performance in B&M UK, with continued momentum in B&M Fr
Slide 6: New stores across both B&M businesses drive Group revenue growth
New stores across both B&M businesses drive Group revenue growth Year-on-year Group revenue progression (£m) B&M UK space sales growth reflects opening timings and closures 73 5,775 41 (11) 137 22 -2 (8) Gross Openings Relocations Closures Net Openings Fascia overview FY26 Total Sales Growth 13.4% 5
Slide 7: Flat UK like-for-like sales, with improving trajectory
Flat UK like-for-like sales, with improving trajectory B&M UK B&M France 8.0% 20.0% 18.0% 6.0% 16.0% 4.0% 14.0% 12.0% 2.0% 10.0% 0.0% 8.0% -2.0% 6.0% 4.0% -4.0% 2.0% -6.0% 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY25 FY26 FY25 FY26 LFL Total LFL Total • General Merchandise sales value a
Slide 8: Trading margin impacted by lower bought-in margin and price investment
Trading margin impacted by lower bought-in margin and price investment Year-on-year B&M UK gross profit progression (£m) Trading margin commentary: GM: lower bought-in margins within 1,676 -2 spring/summer and autumn/winter ranges The rate of decline lessened in H2 vs. H1, but 50 1 1,658 General Mer
Slide 9: B&M UK: Price investment in FMCG; improving trajectory in GM
B&M UK: Price investment in FMCG; improving trajectory in GM FMCG Category Margin % GM Category Margin % Price investment in KVI lines from August 2025 H1 H2 H1 H2 H1 H2 H1 H2 FY25 FY26 FY25 FY26 • H1 margin impacted by lower buying margins on Spring/Summer • Line-by-line price benchmarking analysis
Slide 10: B&M UK: Cost increases from statutory changes and growth investment
B&M UK: Cost increases from statutory changes and growth investment Year-on-year B&M UK adjusted operating cost progression (£m) 23 1,263 52 14 14 38 43 1,131 25.2% 27.4% of sales of sales New stores & opening costs Transport & distribution Other costs ² FY25 Adjusted Opex Staff wages ¹ EPR FY26 Adj
Slide 11: B&M UK: Gross profit increase insufficient to offset rising costs
B&M UK: Gross profit increase insufficient to offset rising costs £m FY26 FY25 Current year trends Revenues 4,615 4,483 • Limited LFL revenue growth and gross profit margin decline not offsetting higher costs Gross profit 1,658 1,676 • New stores and warehouse upgrades increase cost base % 35.9% 37.
Slide 12: Adjusted EBITDA by fascia
Adjusted EBITDA1 by fascia Group2 (£m) B&M UK (£m) 545 Key Observations 620 459 395 Group adjusted EBITDA1,2 of £459m, down 25.9% YoY B&M UK’s adjusted EBITDA margin 360 bps 11.1% 8.0% 12.2% 8.6% lower due to flat LFL and lower trading gross margins not providing offset to operating FY25 FY26 FY25 F
Slide 13: Strong free cash flow generation
Strong free cash flow generation Cash flow overview (£m) Delivered £321m of free cash flow, with strong cash FY26 FY25 conversion EBITDA (post-IFRS 16) 672 840 Change in working capital 90 (64) Other1 39 8 Working capital benefitted from actions under Back to Cash generated from operations 801 784 B
Slide 14: Continued disciplined approach to capex
Continued disciplined approach to capex Capex development (£m) Key Observations 139 • New store capex of £59m: supporting the opening 111 of 64 gross new stores across the Group 59 • Infrastructure one-off capex of £14m: driving DC New stores capacity expansion at Ellesmere Port and Rugby New DC fit
Slide 15: Capital allocation principles underpinned by a disciplined financial framework
Capital allocation principles underpinned by a disciplined financial framework Foundation of a prudent capital structure, maintaining a 1.0-1.5x leverage ratio over time1 Organic growth 1 Invest in the business to drive growth and deepen Maintenance / growth capex and estate expansion foundations Or
Slide 16: FY26 reflections
FY26 reflections FY26 a year of transition in which we faced significant 1 UK cost inflation, margin decline and lower profits Achieved +0.1% LFL in B&M UK in Q4 and (0.4)% LFL in 2 H2 overall Continued progress in France in FY26, with adjusted 3 EBITDA increasing from £48m to £53m Strong FCF genera
Slide 17: Strategy Update
Strategy Update Tjeerd Jegen Chief Executive Officer
Slide 18: We are executing on our strategic plan at pace
Deepening Accelerating We are executing on our strategic plan at pace our growth Back to B&M Basics foundations • Implementation of Back to B&M Basics well advanced 1 Back to B&M Basics • FMCG range rationalisation rollout has started • Full impact of all actions yet to be observed, but early indica
Slide 19: Back to B&M Basics is delivering positive outcomes
Back to B&M Basics is delivering positive outcomes P1 Price Promotions What we Big brands, big savings: sharper pricing to restore Drive excitement through relevant local and seasonal said competitiveness and improve customer value perception offerings and with improved front-of-store bays Weekly
Slide 20: Back to B&M Basics is delivering positive outcomes
Back to B&M Basics is delivering positive outcomes P1 Range Availability What we More relevant range, less cluttered shelves and stores to Boost on-shelf availability to deepen loyalty, closing the gap to said boost ease of shop and convey stronger value proposition best-in-class through replenishme
Slide 21: We are already making progress with Phase 2 plans
We are already making progress with Phase 2 plans P2 Optimising range to customer missions Clustering model completed – 6 clusters identified High street, Stand-alone stores, Central Rural hub grocery mission, garden focus, essentials smaller basket larger baskets Students & city Higher disposable C
Slide 22: Balancing store rollout with investments in existing estate
Balancing store rollout with investments in existing estate P2 Leveraging better data and customer insights to help us flex and evolve store formats Flexing store formats UK store growth Investment designed to be self-funded through cost and working capital efficiencies Re-laying Refitting B&M 2.0 •
Slide 23: B&M France is a multi-year growth story
P3 B&M France is a multi-year growth story • B&M France offers a compelling customer value proposition and is gaining discount share in a competitive marketplace • Positive LFL sales delivered in FY26 with discount category share of 8.4% (+0.3 YoY)1 • Mid-teens revenue growth driven by higher footfa
Slide 24: Heron Foods remains a value convenience opportunity
P3 Heron Foods remains a value convenience opportunity • Working to sharpen Heron's customer proposition for the current market environment • Reassessing the role of clearance, historically a key driver of success • Ongoing investment in core team capabilities • Encouraging start to FY27, with posit
Slide 25: Our current priorities play to the strengths of our business model
Our current priorities play to the strengths of our business model Growth in Restoring growth with Back new stores to B&M Basics Financially-disciplined Like-for-like investment C A growth Flexing existing Rebuilding gross estate format margin Efficiencies from End-to-end simplifying our business B
Slide 26: A reminder of where we are heading
A reminder of where we are heading A clear growth story + Healthy bottom line = Driving shareholder returns Like-for-Like Attractive TSR Stable, positive LFL Margin Cash stability generation Back to B&M Basics driving return of Managed within a defined and sustainable LFL growth in B&M UK discipline
Slide 27: Summary: balancing strategic execution with continued financial discipline
Summary: balancing strategic execution with continued financial discipline Executing Back to B&M Basics at pace and making 1 consistent progress against a clear plan Restoring UK general merchandise trading margin to 2 enable us to remain sharp in FMCG pricing Balance sheet leverage back within 1.0
Slide 28: Q&A
Q&A
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