
B&M European Value Retail S.A. (LSE:BME) reported a 3.7% increase in group revenue for fiscal year 2025, driven largely by the addition of new stores, even as the broader economic environment remains challenging. The company sustained solid profit levels, with adjusted EBITDA edging up slightly to £620 million. However, operating profit saw a decline, mainly due to increased depreciation expenses.
Looking ahead, B&M announced plans to develop a new import facility in the UK and expand its distribution center in France. Additionally, the company is pursuing a redomiciliation to Jersey to improve flexibility around capital returns. The recent appointment of Tjeerd Jegen as CEO is expected to provide fresh strategic direction during this period of transformation.
Financial and Market Position
B&M maintains strong profitability and cash flow generation, underpinning its resilient financial profile. Nonetheless, elevated debt levels and some negative technical signals present potential risks. Despite these concerns, the company’s shares remain undervalued, supported by an attractive dividend yield. Corporate updates and earnings calls highlight ongoing growth initiatives and share buyback programs, suggesting promising prospects for investors.
About B&M European Value Retail S.A.
B&M European Value Retail S.A. is a leading value retailer in Europe, offering a wide assortment of products at competitive prices. Operating extensively in the UK and France, and through its Heron Foods brand, the company focuses on delivering cost-efficient retail solutions to consumers.