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.

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.