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B&M European Value Retail SA on Tuesday said the warm weather had supported UK sales in its financial first quarter although growth fell short of City hopes. Revenue in the first quarter to June 28 rose 4.4% on-year to £1.41 billion. In the UK, revenue rose 4.7% to £1.13 billion, while in France, it increased 7.6% to £136 million. At Heron Foods, it fell 0.4% to £138 million. UK like-for-like sales rose 1.3%, ‘driven by a good performance in April from our general merchandise outdoor ranges assisted by drier weather and Easter timing,’ the variety goods discount retailer said. However, the rise fell short of Visible Alpha consensus for 2.6% growth. In response, shares in the Luxembourg-based variety goods discount retailer fell 9.3% to 233.73 pence each in London on Tuesday morning. They have fallen 48% in the last 12 months. B&M said fast-moving consumer goods LFL for the quarter was negative although performance in its Health & Beauty and Cleaning categories has been comparatively stronger in June following ‘improvements made in operational execution.’ ‘Further work to strengthen our FMCG proposition continues,’ the firm added. B&M UK General Merchandise sales values and units increased in the first quarter on both a LFL and total basis with garden, toys and do-it-yourself categories performing well, despite deflation in average selling prices. ASP deflation has led to a lower trading gross margin year-on-year in some General Merchandise categories, B&M added. Chief Executive Tjeerd Jegen, who was appointed in May, said it was a ‘challenging economic climate’. ‘While B&M UK’s like-for-like sales are growing, I see a significant opportunity and requirement to sharpen our commercial and operational execution as we move towards and beyond the golden quarter.’ B&M will release half-year results on November 13. It will provide annual profit guidance at that point. The firm explained its redomicile process is progressing as planned, with completion expected this calendar year. The company has called an extraordinary general meeting for July 22, the same day as its annual general meeting, for shareholders to approve moving the company’s domicile to Jersey from Luxembourg. In June, B&M said this will ‘simplify its corporate and administrative structure, while providing greater flexibility for returning capital to shareholders, including through share buybacks.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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