B&M has announced its chief executive is retiring as the discounter cuts its profit guidance for a second time this year.
Alex Russo has announced he will retire at the end of April after three years at the helm, kicking off a recruitment process for a new boss.
In a statement to markets today, the value retailer said: “The board is in the advanced stages of a recruitment process to appoint a new CEO with the support of a leading executive search firm and will provide an update in due course.”
B&M coupled the announcement with a second change in its profit guidance since the start of the year. The discounter has advised that its FY25 adjusted EBITDA (pre-IFRS 16) is now expected to be in the range of £605m to £625m, down from the £620m-650m in its Christmas trading results, and down further still from the £620m-£660m guidance in its half-year results.
The discounter said the update “reflects the current trading performance of the business, an uncertain economic outlook and the potential impact of exchange rate volatility on the valuation of our stock and creditor balances, which is a non-cash item”.
B&M also told the markets the board had “exercised its discretion” to allow Russo to be eligible for an annual bonus for the current financial year and to retain his awards under the company’s share plans, stating: “Details of his remuneration, including bonus and share plan treatment, and severance terms will be in line with his service agreement and the directors’ remuneration policy approved by shareholders at the AGM in July 2024.”
B&M chair Tiffany Hall said: “I would like to thank Alex for his commitment, energy, dedication and hard work since joining the business in 2020 and, in particular, since becoming CEO in September 2022. Alex has increased our store footprint in both the UK and France and driven a relentless focus on high operational standards and low costs, enabling the company to provide great products and everyday low prices to our customers whilst generating continued strong cash returns for our shareholders. We wish him well for the future.”
Russo said: “I have thoroughly enjoyed my time at B&M since joining in 2020. The business has been successfully steered through the pandemic years and is now larger and stronger with group revenues increasing by almost 50% and cash distributions to shareholders in excess of £2bn during my tenure. It has been professionally rewarding to assemble and work with a high-quality leadership team and to retire leaving growing businesses with great potential in both the UK and France. I wish the board and the leadership team every success in the years ahead.”
Russo took over as chief executive role over from one of the industry’s greatest entrepreneurs of recent years. Simon Arora and his brother Bobby took B&M from a 20-store business to one with 1,100 branches, international operations and FTSE-100 status.
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