B&M has returned to sales growth in its UK business following changes to pricing, product ranges, and stock availability, providing early evidence that its operational turnaround is improving trading performance.
The discount retailer reported a 3.2% increase in UK like-for-like sales during the second quarter of its financial year, reversing a 2.3% decline in the preceding three months.
For the 26 weeks ended 26 September 2026, B&M European Value Retail recorded group revenue of £2.85bn, an increase of 3.6%, while adjusted pre-tax profit rose 16.6% to £121m.
Statutory pre-tax profit increased 53.7% to £115m, supported by improvements in margins and trading across the company’s UK, French, and Heron Foods operations.
The results follow the introduction of Back to B&M Basics, a programme launched under chief executive Tjeerd Jegen in October 2025 to address weakening sales and restore profitability.
Its principal measures include more competitive pricing, improved availability of popular brands, revised promotions, and a reduction in the number of individual products stocked.
Operational changes support recovery —
B&M has been simplifying its product ranges to concentrate on items customers purchase most frequently, alongside changes to stock replenishment and store operations.
The company previously identified weaknesses in the availability of popular grocery and household products, even where stores appeared adequately stocked overall.
Reducing unnecessary product variation allows more space to be allocated to bestselling lines, while revised replenishment processes are intended to improve availability and reduce lost sales.
Jegen said the initial changes were beginning to produce results, with improvements in pricing, availability, promotions, and the management of product ranges contributing to the recovery.
The second-quarter improvement was led by general merchandise, supported by an extended gardening season. Grocery and other frequently purchased products also performed better than during the first quarter.
UK like-for-like sales increased by a more modest 0.4% across the full first half, reflecting the weaker trading conditions earlier in the year.
The company reported that the four principal elements of its initial turnaround programme had been implemented, allowing management to concentrate on maintaining improvements and developing the next phase of the strategy.
Profitability improves across the group —
Group gross margin reached 37.2%, an increase of 67 basis points compared with the previous year.
Adjusted earnings before interest, tax, depreciation, and amortisation, measured before IFRS 16 adjustments, rose 6% to £203m.
B&M France reported first-half like-for-like sales growth of 5.9%, while Heron Foods achieved an increase of 2.9%. Both businesses contributed to the group’s stronger performance.
Cash generation also improved. Post-tax free cash flow reached £132m, compared with £51m a year earlier, supported by higher profits, working capital improvements, and the timing of capital expenditure.
The company’s ratio of net debt to adjusted earnings, excluding lease obligations, declined to 1.3 times from 1.6 times.
B&M has introduced full-year guidance for adjusted pre-tax profit of £280m–£330m, compared with £284m in the previous financial year. Adjusted earnings before interest, tax, depreciation, and amortisation are expected to reach £450m–£500m.
The range leaves room for different trading outcomes during the important Christmas period, when customer demand and the effectiveness of promotions will influence annual performance.
Management reported positive early trading across all three businesses during the autumn peak, including continued UK growth in grocery and general merchandise.
The retailer also opened its new B&M 2.0 concept store in Wigan in August, providing an opportunity to evaluate changes to store presentation and operating practices.
The latest results demonstrate progress in restoring sales and profitability, although the full-year outcome remains dependent on sustaining that improvement through the group’s busiest trading period.
