B&m European Value Retail Plc · LSE:BME
B&m European Value Retail — H1 FY26 Earnings Presentation
28 slides from B&m European Value Retail's earnings presentation, Nov 13, 2025
Slide 1: H1 FY26 Interim Results & Strategy Update
B&M European Value Retail S.A. H1 FY26 Interim Results & Strategy Update 13 November 2025
Slide 2: Introduction
Introduction Tjeerd Jegen Chief Executive Officer
Slide 3: Agenda
Agenda CEO Introduction H1 FY26 Financial Results Strategic Update: Back to B&M Basics & Beyond Value Creation and Capital Allocation Framework 3
Slide 4: Reflections on FY26 to date
Reflections on FY26 to date • Our H1 financial performance has fallen well short of our expectations • Weak UK LFLs and gross margin decline combined with cost increases impacting profitability and earnings • Back to B&M Basics plan launched to improve our retail execution and restore UK LFL growth
Slide 5: Strengthening our capabilities
Strengthening our capabilities Simon Hathway, Trading Director • 28 years international Retail experience • Former Buying & Merchandising Director at Action Holding B.V. • Senior leadership roles at J. Sainsbury plc, AS Watson and Wilko Helen Cowing, Interim CFO • Highly experienced Finance leader a
Slide 6: Operational Update
Operational Update Third-Party Review • EY commissioned by the Board to undertake a review of the issue communicated in our 20 October Update • We will update further in our Q3 Trading Update in January 2026 Jersey Redomicile • Migration from Luxembourg to Jersey remains a priority to provide increa
Slide 7: H1 FY26 Financial Performance
H1 FY26 Financial Performance Mike Schmidt Chief Financial Officer
Slide 8: Group H1 FY26: Revenue growth but weak profit performance
Group H1 FY26: Revenue growth but weak profit performance £m H1 FY26 H1 FY25 Y-o-Y FY25 Weaker H1 profit performance from B&M UK LFL (+0.1%) & gross margin Revenue 2,749 2,644 4.0% 5,571 trends Adjusted EBITDA (pre-IFRS 16)1 191 274 (30.2)% 620 % 7.0% 10.4% (341)bps 11.1% France LFL (+5.2%) & new UK
Slide 9: B&M UK new stores and France drive Group revenue growth
B&M UK new stores and France drive Group revenue growth Year-on-year Group revenue progression (£m) B&M fascia quarterly like-for-like performance 9.4% 33 2,749 B&M UK 1.2% 1.1% B&M France -1.1% 71 -2 3 Q1 Q2 2,644 H1 B&M UK space sales growth reflects opening timings and closures – FY26: 40-45 gros
Slide 10: Lower B&M UK trading margins lead to flat gross profits
Lower B&M UK trading margins lead to flat gross profits Year-on-year B&M UK gross profit progression (£m) GM: lower bought-in margins in spring/summer ranges and mix shift towards lower margin departments FMCG: price investment in key KVI lines in late H1 FY26 Range management: exiting ranges to red
Slide 11: 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) 12 624 14 24 16 558 New stores New Stores&&opening Opening Staff Costs (Net of EPR Tax (all H1) H1 FY26 Adjusted Opex (1) (2) H1 FY25 Adjusted Opex cost Staff Mitigation)
Slide 12: B&M UK: Weak LFL and gross margins not offsetting higher costs
B&M UK: Weak LFL and gross margins not offsetting higher costs £m H1 FY26 H1 FY25 FY25 Current year trends • Limited LFL revenue growth and gross profit margin decline not Revenues 2,196 2,121 4,483 offsetting higher costs drives H1 profit outturn Gross profit 794 798 1,676 • New stores and warehous
Slide 13: Adjusted EBITDA decline reflects flat UK LFLs, lower trading margins and higher costs
Adjusted EBITDA1 decline reflects flat UK LFLs, lower trading margins and higher costs Group (£m) B&M UK (£m) Key Observations 274 240 191 170 Group adjusted EBITDA1,2 of £191m down 30.2% YoY B&M UK’s adjusted EBITDA1 margin 362bps 11.5% 11.1% 11.3% 7.7% lower due to flat LFL and lower trading gross
Slide 14: Continued cash discipline supports healthy free cash flow
Continued cash discipline supports healthy free cash flow Cash flow overview (£m) Capex development (£m) H1 FY26 H1 FY25 New stores 74 New DC fit-out (one-off) EBITDA (post-IFRS 16) 295 369 Infrastructure & freehold Maintenance 59 Change in working capital (28) (86) 32 Other1 26 20 28 7 Cash generat
Slide 15: Multiple actions underway to restore performance
Multiple actions underway to restore performance FY26 was a half with challenges… …those challenges are being addressed Low / negative like-for-like sales growth for B&M UK & B&M Back to Basics plan to restore LFL growth and gross Heron and decline in B&M UK gross margin margin trajectory slightly i
Slide 16: Strategic Update
Strategic Update Tjeerd Jegen Chief Executive Officer
Slide 17: What we said in October
What we said in October • Fundamentals intact, but B&M’s customer proposition remains 1 Diagnosis & Priority operational improvements strong, but execution has drifted required • Solutions across Price, 4 focus areas to return B&M UK to 2 Back to B&M Basics Promotions, Range and sustainable like-for
Slide 18: B&M remains a fundamentally strong business
B&M remains a fundamentally strong business Skilled and Compelling brand with experienced teams unique value proposition 6 1 Strong margins Like-for-like and FCF C A growth Disruptive sourcing Targeted grocery offer and and cost-efficient 5 2 broad GM range with operations discount prices 4 3 Low co
Slide 19: A reminder of our strategy
A reminder of our strategy Immediate priorities Medium Term Accelerating Deepening our growth foundations (Phase 3) Back to (Phase 2) France acceleration B&M Basics Investigate case for: Leverage customer insights Price Improve formats & location strategy eCommerce Promotions Process simplification
Slide 20: Back to B&M Basics is progressing
Back to B&M Basics is progressing P1 Price Promotions Diagnosis: >15% cheaper basket, Diagnosis: Manager’s Specials had lost dynamism but uncompetitive on 35% of KVI lines Stores Promo space dynamically defined by Dual approach to price management now in place strength and quality of deals Manager’s
Slide 21: Back to B&M Basics is progressing
Back to B&M Basics is progressing P1 Range Availability Diagnosis: SKUs had increased Diagnosis: poor on-shelf availability from 13k to 16.5k over 18 months at 86% versus 98% best-in-class standard Reducing SKUs to strengthen our customer value Boosting on-shelf availability to deepen loyalty propos
Slide 22: Deepening our foundations to support future growth
P2 Deepening our foundations to support future growth Diagnosis: untailored store format, layout and customer engagement Solution: leveraging customer insights to create better stores and tailored ranges Our opportunities What we’re doing Where we’re going Identified 6 store clusters in UK based on:
Slide 23: Our scaled UK estate enjoys strong store economics
Our scaled UK estate enjoys strong store economics Strong and healthy brand presence with ample whitespace opportunities 786 stores across the UK… …in good financial health LTM margin >99% of UK stores had a contribution positive margin contribution over the last 12 months(1) Store size (Square ft)
Slide 24: We see ample opportunity for profitable, multi-year store growth
We see ample opportunity for profitable, multi-year store growth Sizeable, profitable whitespace opportunity UK space growth economics Framework for long-term target Strengthening store selection framework: • Data-driven process to identify financially and operationally attractive new UK locations A
Slide 25: Our value creation principles support attractive shareholder returns
Our value creation principles support attractive shareholder returns Compelling growth story + Healthy financial returns = Attractive shareholder returns Like-for-Like Stable, positive LFL Margin Cash Managed with a defined and stability generation disciplined capital allocation Back to B&M Basics d
Slide 26: 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 time(1) Organic growth 1 Invest in the business to drive growth and deepen Maintenance / growth capex and estate expansion foundations
Slide 27: Back to B&M Basics – and Beyond
Back to B&M Basics – and Beyond H1 FY26 performance has fallen well short Back to B&M Basics actions progressing Strengthening leadership team with 3 new appointments Working towards Phase 2 of our strategy to deepen B&M’s foundations and support future growth Healthy UK estate, growth ambition rema
Slide 28: Q&A
Q&A
B&M European Value Retail — H1 FY26 Earnings Presentation on 6ix