B&M European Value Retail SA on Monday said its chief executive will leave the company at the end of April, after warning that full-year profit will be lower than expected.
The Luxembourg-based variety goods value retailer now expects full-year adjusted earnings before interest, tax, depreciation and amortisation between £605 million from £625 million, down from its previous guidance of £620 million to £650 million.
This reflects the current trading performance of the business, an uncertain economic outlook, and the potential impact of exchange rate volatility on the valuation of stock and creditor balances, B&M said in a statement.
For the 53 weeks that ended March 30, 2024, B&M reported adjusted Ebitda of £629 million, so the financial 2025 result will be lower.
In response, shares in B&M, which was demoted from the FTSE 100 in the last quarterly reshuffle in December, were down 8.2% at 267.10 pence each in London on Monday morning.
In addition, B&M said Chief Executive Alex Russo intends to retire with effect from the end of April.
B&M said it is in the ‘advanced stages’ of a recruitment process to appoint a new CEO.
Russo, who will be eligible for an annual bonus for the current financial year, said he has ‘thoroughly enjoyed’ his time at B&M since joining in 2020.
‘The business has been successfully steered through the pandemic years and is now larger and stronger with group revenues increasing by almost 50% and cash distributions to shareholders in excess of £2.0 billion during my tenure,’ he added.
B&M Chair Tiffany Hall thanked Russo for ‘his commitment, energy, dedication and hard work.’
B&M will provide a post-close trading update at the end of April.
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