Discount retailer B&M saw its shares climb by about a fifth on Thursday after half-year results showed its turnaround plan is starting to work, with UK sales returning to growth and profits rising sharply.

The shares closed 20.93% higher at 337.4p on 12 November, having risen as much as 19.5% in early trading, as investors welcomed the first set of results under chief executive Tjeerd Jegen's “Back to B&M Basics” programme. The stock had more than doubled from its low of 164p a year earlier, according to trade publication The Grocer.

What the results showed

Group revenue rose 3.6% to £2.85 billion in the 26 weeks to 26 September 2026, while adjusted profit before tax increased 16.6% to £121 million, up from £103 million a year earlier. Statutory profit before tax rose 53.7% to £115 million, helped by stronger trading and lower one-off charges, and adjusted earnings before interest, tax, depreciation and amortisation rose 6% to £203 million.

In the UK, like-for-like sales rose 0.4% over the half year, a figure that masked a sharp improvement between quarters. UK like-for-like sales fell 2.3% in the first quarter before rising 3.2% in the second, as sharper pricing and better availability of popular products drew shoppers back. B&M France grew like-for-like sales by 5.9%, ahead of expectations, and Heron Foods also returned to like-for-like growth.

The turnaround plan

Jegen, who took over as chief executive in June 2025, launched the “Back to B&M Basics” plan in October 2025. It focuses on four areas: sharper prices, more effective promotions, a simpler product range and better on-shelf availability. The company said the second-quarter performance showed the first phase of the strategy was working, and it pointed to encouraging early trading at a new “B&M 2.0” concept store in Wigan.

Analysts had expected UK like-for-like sales to fall over the half year, so the return to growth, combined with profit ahead of forecasts, drove the sharp share price reaction. The Grocer reported that the shares reached their highest level in almost 18 months.

New profit guidance

For the first time, B&M gave formal guidance for the current financial year, which ends in March 2027. It expects adjusted earnings before interest, tax, depreciation and amortisation of between £450 million and £500 million, against £459 million last year, and adjusted profit before tax of between £280 million and £330 million, against £284 million last year.

The top of that profit range would mean growth of about 16%, but the bottom would mean a small fall, so the guidance leaves room for different outcomes depending on trading over the rest of the year, including the key Christmas period. Brokers had previously expected profit of about £290 million, near the lower end of the new range.

Dividend and outlook

Shareholders will receive an interim dividend of 3.6p per share, payable on 18 December 2026 to investors on the register at the close of business on 20 November 2026. B&M, which describes itself as the UK's leading value retailer, operates 797 stores in the UK as well as stores in France and the Heron Foods chain.

The results come as value retailers compete hard for cost-conscious shoppers, with households still watching everyday spending closely. B&M's recovery is not yet complete: its earnings margin remained subdued at 7.1%, and management has said the full benefits of the turnaround will build over 12 to 18 months. But after a difficult period for the shares, Thursday's figures gave investors their clearest sign yet that the plan is gaining traction. B&M's investor results page carries the full interim announcement, and The Grocer's report covers the market reaction.