B&M profit up 16.6% as home and garden ranges lift UK sales

Garden and home ranges helped B&M UK return to like-for-like growth, with Q2 sales up 3.2% and profit rising 16.6%.

B&M European Value Retail has returned its UK business to like-for-like (LFL) sales growth, with General Merchandise leading the recovery. In the 26 weeks to 26 September 2026, B&M UK LFL sales rose 0.4%. The second quarter was much stronger, at +3.2%, following a weather-hit first quarter in which LFL sales fell 2.3%.

The detail matters for suppliers of garden, home, housewares and seasonal products. B&M says second-quarter growth was led by General Merchandise, which benefited from an extended garden season after a slow, weather-related start. Non-seasonal categories also contributed, including its Home ranges. General Merchandise LFL growth came from both higher average selling prices and higher volumes.

Headline and statutory measures, H1 FY27. Source: B&M FY27 Interim Results announcement, 12 November 2026.

Group performance

Group revenue rose 3.6% to £2,848m, with LFL growth in all three businesses: B&M UK, B&M France and Heron Foods. Group gross margin improved by 67 basis points to 37.2%. Adjusted EBITDA (pre-IFRS 16) rose 6.0% to £203m, and adjusted profit before tax rose 16.6% to £121m. Statutory profit before tax was up 53.7% at £115m.

Group financial review, H1 FY27. Source: B&M FY27 Interim Results announcement, 12 November 2026.

B&M UK, France and Heron

B&M UK revenue rose 2.4% to £2,248m, and its EBITDA margin held at 7.5%. Trading gross margin rose 94 basis points to 36.3%. B&M put this down to higher General Merchandise category margins and General Merchandise making up a bigger share of sales. FMCG margins were lower than last year, reflecting price investment in key value items and clearance linked to a reduction in the number of FMCG product lines (SKUs).

B&M France grew revenue 13.7% to £319m, with LFL sales up 5.9%. B&M says French shoppers are drawn by its value, newness and depth of choice across Home categories. Heron Foods grew revenue 3.0% to £281m.

Revenue and EBITDA margin by business. Source: B&M FY27 Interim Results announcement, 12 November 2026.

Stock, costs and stores

Inventories stood at £926m, down from £1,035m a year earlier. B&M credits process improvements for an earlier-than-expected benefit to working capital. Adjusted operating costs rose 5.4%, driven by wages, a larger store estate and supply chain investment, including a new third-party managed distribution centre in Rugby.

B&M will open fewer new UK stores this year, now 15–20 gross openings against previous guidance of 25–35, returning to 25–35 in FY28. It is putting the money into re-laying and refitting existing stores instead. Its new B&M 2.0 concept store in Wigan is designed around a layout that plays to B&M’s strength in General Merchandise and seasonal ranges.

Outlook

B&M says early Golden Quarter trading has been positive, with continued UK LFL growth in both FMCG and General Merchandise. It has introduced FY27 guidance of £450m–£500m adjusted EBITDA (FY26: £459m) and £280m–£330m adjusted profit before tax (FY26: £284m). Chief executive Tjeerd Jegen said: “Back to B&M Basics is starting to deliver.”

What does this mean for your business?

• General Merchandise is driving the recovery. Garden and home ranges are leading B&M UK’s return to growth and are lifting its margins.
• Weather still makes or breaks seasonal ranges. A poor first quarter was followed by a strong second quarter once the garden season extended.
• Inventory is leaner. Stock is down £109m year on year, which points to tighter inventory management at B&M.
• Store investment is changing shape. There will be fewer new UK stores this year but more re-lays and refits, and new store formats give General Merchandise and seasonal ranges more prominence.

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