B&M European Value Retail SA (LSE:BME) reported a fall in profits for the past year though underlying earnings were towards the upper end of its previous guidance, as it prepares to begin a new era after a recent boardroom reshuffle.
The discount chain, which operates stores across the UK and France under the B&M, Heron Foods and Babou brands, posted preliminary results showing adjusted EBITDA up 0.6% to £620 million for the year to 29 March 2025.
This was in the upper half of the guidance range of between £605 million and £625 million provided in a profit warning in April, which saw previous CEO Alex Russo step down.
The FTSE 250-listed group has since appointed experienced European discount boss Tjeerd Jegen as CEO, starting on 16 June.
Adjusted operating profit declined by 1.8% to £591 million, due to higher depreciation, while statutory profit before tax fell 13.2% to £431 million, impacted by increased interest and finance costs.
Free cash flow dropped 18.5% to £311 million in the year, mainly due to higher stock holdings, while net debt increased 5.9% to £781 million.
As already revealed two months ago, group revenues increased 3.7% in the year to £5.6 billion, driven by 70 gross new store openings.
B&M declared a final dividend of 9.7p, bringing the total dividend to 15p for the year, as well as a special dividend of 15p that was paid this February, with the 30p total down from 34.7p a year earlier.
The company opened 70 gross new stores during the year and highlighted progress on logistics infrastructure, with a new UK import centre due to become operational in the summer and expansion underway in France.
No comment on outlook or recent trading was given.