B&M European Value Retail SA

LSE:BME

Revenue Growth: Group revenue rose by 4% to GBP 2.75 billion, supported by new store openings and strong performance in France.

Profit Decline: Adjusted EBITDA fell sharply to GBP 191 million from GBP 274 million last year, due to flat UK like-for-like sales, lower gross margin, and higher statutory costs.

Guidance Reiterated: Management maintained full-year adjusted EBITDA guidance of GBP 470 million to GBP 520 million, despite challenging trading conditions.

Back to Basics Plan: The company launched the 'Back to B&M Basics' plan focused on pricing, range simplification, and improved availability, aimed at restoring UK like-for-like sales growth over 12–18 months.

Store Expansion: The UK store opportunity was reaffirmed at 1,200 sites, with plans to open 40–45 new stores this year.

Margin Recovery Target: Management expects UK EBITDA margins to return to low double digits in the medium term as Back to Basics initiatives take effect.

Leadership Changes: New hires were announced for Group Trading Director, interim CFO, and a combined Retail & Supply Chain head to strengthen execution.

Accounting Issue: A previously disclosed accounting error related to unrecognized freight costs prompted an external review, with findings expected in early 2024.