B&M Shares Drop as FY25 Profit Falls

B&M European Value Retail’s (LON: BME) stock fell early on Tuesday after the discount retailer reported a drop in full-year profit and flagged continued retail sector challenges.

For the 52 weeks to March 29, the group posted a 13.2% decline in statutory profit before tax to £431 million. Statutory diluted earnings per share fell 13% to 31.8p, while operating profit dropped 7% to £566 million.

The company cited higher depreciation and finance costs for the profit decline.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

B&M shares are down around 3.9% following the release, with the stock trading around the 319.5p level. This year, it is down more than 14%.

Group revenue rose 3.7% on a comparable 52-week basis to £5.6 billion, driven largely by new store openings. 

However, like-for-like sales in its core B&M UK business fell 3.1%, reflecting a “challenging UK retail trading environment,” including weak consumer confidence and subdued demand during the key garden season.

Adjusted operating profit edged down 1.8% to £591 million, with adjusted EBITDA flat at £620 million. Post-tax free cash flow fell 18.5% to £311 million due to increased stock holdings.

Despite the headwinds, B&M raised its ordinary dividend 2% to 15.0p and reiterated its long-term strategy of expanding to at least 1,200 B&M UK stores.

Tjeerd Jegen will join as CEO on June 16. The company said it remains confident in its low-cost model and value offering as it navigates rising costs in the year ahead.