B&M European Value Retail SA on Thursday reported overall revenue growth in the three months to December 28, despite a slowdown in portfolio business Heron Foods Ltd.
The Luxembourg-based variety goods value retailer said third-quarter group revenue rose 2.8% on a constant currency basis, amounting to 3.5% growth in the year to date.
UK revenue was £1.39 billion, up 2.8% from £1.35 billion year-on-year. Revenue in France rose by about 13% to £164 million from £151 million in 2024.
Subsidiary Heron Foods, however, saw revenue decline 5.6% to £136 million from £144 million the year prior.
UK revenue on like-for-like sales also declined, falling by 2.8% in the third-quarter. Still, B&M noted positive LFL growth in December, which has continued into January, with UK business maintaining a strong gross margin. LFL sales in France grew 3.8% during the three-month period.
B&M said fast-moving consumer goods and general merchandise ‘saw excellent seasonal range sell-through’, with volume and LFL growth reported for Christmas-themed products.
Despite its confidence in the ‘January seasonal transition’, B&M shares were down 14% at 301.50 pence each on Thursday morning in London.
The company is on track to open around 73 gross new stores in financial 2025, it said, in addition to 45 UK openings planned for financial 2026.
B&M is starting enquiries to move ahead with plans for redomiciliation. It is considering relocating to either Jersey or Ireland.
‘The company intends to retain its London listing in the event that any change is ultimately implemented,’ B&M noted.
The company has declared a special dividend of 15.0 pence per share for the three-month period, to be paid on February 14. B&M has narrowed its profit guide, and is now targeting group earnings before interest, taxation, depreciation and amortisation between £620 million and £650 million. This is still above 2024’s guide range of £620 million to £650 million.
‘The business remains undistracted by the current economic headlines,’ commented Chief Executive Alex Russo.
‘Our strategy is clear - we are an everyday low-price discounter with a laser-focus in keeping excellence in retail standards and our costs the lowest.
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