**Summary**
B&M European Value Retail S.A., the UKs leading variety goods discount retailer, released its FY26 H1 trading and operational update on October 7, 2025. The company reported a 4.0% growth in group revenue to £2,749 million, driven by strong performance in B&M UK and France, as well as new store openings. However, B&M UKs like-for-like (LFL) sales grew only 0.1%, with general merchandise offsetting declines in FMCG sales.
CEO Tjeerd Jegen acknowledged operational weaknesses and announced a new plan, "Back to B&M Basics," aimed at restoring sustainable LFL growth in the UK. Key initiatives include
1. **Price adjustments**Sharpening the value proposition by cutting prices on 35% of FMCG Key Value Items.
2. **Promotional changes**Revamping "Managers Specials" to bring excitement and value to stores.
3. **Range optimization**Reducing SKU complexity and accelerating clearance of discontinued lines.
4. **Improved availability**Enhancing on-shelf availability of best-selling products.
Despite these efforts, H1 adjusted EBITDA is expected to be approximately £198 million, down from £274 million in H1 FY25, due to weaker LFL performance and margin pressures. The company forecasts FY26 adjusted EBITDA in the range of £510-£560 million, with UK LFL sales as the key driver. The full impact of the "Back to B&M Basics" plan is expected to materialize over 12-18 months.
B&M France continued to perform well with 5.2% LFL growth, while Heron Foods remained profitable but faced LFL pressures. The company is also progressing with its redomicile from Luxembourg to Jersey to simplify operations and enhance shareholder returns. An investor call and webcast were scheduled to discuss the results and strategic initiatives in detail.