B&M has reported a return to UK sales growth and a 16.6 per cent increase in adjusted pre-tax profit for the first half, as its turnaround strategy begins to gain traction with value-conscious shoppers.

For the 26 weeks to September 26, group revenue increased 3.6 per cent to £2.85bn, compared with £2.75bn a year earlier. Statutory pre-tax profit climbed 53.7 per cent to £115m.

Adjusted EBITDA increased 6 per cent to £203m, with net income rising to £84m from £53m in the same period last year.

The results mark an improvement for the discount retailer, which has been working to address declining profitability and weaker trading in its UK business under chief executive Tjeerd Jegen.

Its Back to B&M Basics turnaround plan focuses on restoring price competitiveness, simplifying product ranges, improving promotions and strengthening on-shelf availability.

Jegen said: “Over the past year, we have sharpened our pricing, improved the on-shelf availability of our best-selling brands, revamped our in-store promotions and reduced SKU count across our stores.

“Our goal has been to restore B&M UK to sustainable like-for-like growth while making everyday life more affordable for customers facing mounting cost-of-living pressures, and our second quarter LFL performance of +3.2 per cent shows the first phase of our strategy is working.”

Additionally, B&M France delivered positive trading, with like-for-like sales up 5.9 per cent.

Jegen stressed that the retailer’s focus on sharper pricing and a more streamlined product range was helping attract shoppers, as it continues to compete for customers amid pressure on household budgets and competition from supermarket loyalty schemes.

The retailer said early trading in its golden quarter, covering the key October to December Christmas period, had been positive across all three businesses.

B&M expects full-year adjusted pre-tax profit of between £280m and £330m for FY27, compared with £284m in the previous financial year. This represents potential growth of up to 16 per cent.

The group also reported stronger cash generation, with post-tax free cash flow rising to £132m from £51m a year earlier, while net debt fell 28.7 per cent to £613m.

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