B&M Shares Plunge as CFO Resigns Amid Profit Warning

B&M European Value Retail S.A. (LON: BME) is facing headwinds as it cuts its full-year profit forecast, triggering a CFO change.

The discount retailer's stock is under pressure following the announcement, currently down over 16%.

The Group now anticipates Adjusted EBITDA (pre-IFRS 16) to land between £470m and £520m for FY26, a notable decrease from the prior estimate of £510m to £560m.

This revision stems from the discovery of roughly £7m in unrecognised overseas freight costs, resulting from an operating system update earlier in the year. First-half Adjusted EBITDA (pre-IFRS 16) is now expected to be approximately £191m, down from the previously guided £198m.

The board intends to commission a third-party review of the accounting issue. This move signals a commitment to transparency and corrective action, but also underscores the severity of the situation.

Mike Schmidt, Chief Financial Officer, has tendered his resignation. The timing, coinciding with the profit warning, suggests a connection between the accounting error and his departure. A search for his replacement is underway, and Schmidt will remain in his role to ensure a smooth transition.

B&M UK's like-for-like (LFL) sales remain a key driver of performance. The company reaffirmed its assumption of a second-half UK LFL percentage growth rate of between low-single-digit negative and low-single-digit positive levels.

The Group maintains its expectation that with LFL growth, future adjusted EBITDA margins for B&M UK can stabilize at low-double-digit percentage levels over the medium term. This provides some reassurance amidst the current challenges.