B&M announces special dividend after solid third quarter

The FTSE 250 company said year-to-date group revenue was up 3.3% after the third quarter at £4.331bn, with quarterly revenue up 2.6% to £1.687bn.

On a constant currency basis, revenue growth for the year-to-date and third quarter stood at 3.5% and 2.8%, respectively.

In the UK, B&M's core segment delivered third quarter revenue growth of 2.8%, driven by strong sales in December across seasonal ranges, including confectionery, toys, and Christmas home goods.

While like-for-like revenue in the UK declined by 2.8% in the quarter, December saw a return to positive like-for-like growth.

The firm noted robust gross margin performance and a clean inventory exit position, setting a solid foundation for the seasonal transition in January.

B&M France saw a 12.5% increase in third quarter revenue, supported by a 3.8% rise in like-for-like revenue.

In contrast, Heron Foods experienced a 5.6% decline in the quarter’s revenue, contributing to a 1.2% drop in year-to-date revenue.

The group said it remained on track to open about 73 new stores in the financial year, including 45 in the UK, 11 in France, and 17 under the Heron Foods banner.

Looking ahead to the 2026 period, B&M said it planned to maintain its expansion pace with 45 new UK store openings.

As part of its strategic initiatives, B&M said it was progressing with plans to redomicile its parent company, evaluating Jersey and Ireland as potential destinations while maintaining its London listing.

Further decisions on excess capital returns were expected once the process was completed.

The board said a special dividend of 15p per share would be paid on 14 February, to shareholders on the register as of 17 January, with an ex-dividend date of 16 January.

“Our performance across the Golden Quarter reflects disciplined operational execution across our businesses, driving volume and in turn profit growth,” said chief executive officer Alex Russo.

“The business remains undistracted by the current economic headlines.

“Our operating model is well set up to give customers exceptional value when they need it most.”

Russo said pricing, availability, store standards and a disciplined opening programme would underpin positive volume growth across the company’s ranges, adding that its DC logistics network capacity upgrades were on-track in both the UK and France to support long-term growth.

“With three quarters of the financial year now complete, we narrow our previously disclosed profit growth guidance range.”

Russo said 2025 group adjusted EBITDA was now expected to be in the range of £620m to £650m, equivalent to a group adjusted operating profit of between £590m and £620m.

“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.

“This allows us to drive volumes by offering our best-selling products at exceptional value to every customer.

“Through this volume growth, and with our leading return on capital business model, we continue to generate profit and cash returns for our shareholders.”

Reporting by Josh White for Sharecast.com.