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(Sharecast News) - B&M European Value Retail introduced guidance for FY27 on Thursday as it said its 'back to basics' campaign was bearing fruit, with UK stores showing a return to like-for-like sales growth.
In interim results for the 26 weeks to 26 September, the discount retailer said group revenue rose 3.6% to £2.8bn, with LFL growth across all three businesses of the UK, France and Heron Foods. Group adjusted pre-tax profit was 16.6% higher at £121m.
B&M UK total sales were up 2.4%, with LFL sales growth of 0.4%. This included 3.2% LFL growth in the second quarter, driven by general merchandise and an improved performance from fast moving consumer goods versus the first quarter.
In France, total sales rose 13.7%, driven by LFL growth of 5.9% in the first half and new space growth, it said. Heron Foods total sales grew 3%, with LFL sales growth of 2.9%.
B&M introduced guidance for FY27 for group adjusted earnings before interest, tax, depreciation and amortisation pre-IFRS 16 of between £450m and £500m, versus £459m in 2026, and group adjusted pre-tax profit of £280m to £330m, versus £284m in FY26.
Chief executive Tjeerd Jegen said: "Back to B&M Basics is starting to deliver. Over the past year, we have sharpened our pricing, improved the on-shelf availability of our best-selling brands, revamped our in-store promotions and reduced SKU count across our stores. Our goal has been to restore B&M UK to sustainable like-for-like (LFL) growth while making everyday life more affordable for customers facing mounting cost-of-living pressures, and our second quarter LFL performance of +3.2% shows the first phase of our strategy is working.
"B&M France delivered another strong quarter, with Q2 LFL sales of +6.5% and a margin similar to B&M UK. B&M France has considerable growth potential as we achieve critical scale there and deepen awareness of our differentiated value proposition with customers."
At 0819 GMT, the shares were up 17.3% at 327.29p.
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