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Kingfisher H1 sales up 1.1% but profits down

Kingfisher – owner of B&Q and Screwfix – has reduced its full year profit guidance to £590 million from a previous forecast of £634 million, with performance impacted by ‘challenges in the macroeconomic environment’.

In the six months to 31 July, group total sales rose by 1.1% to £6.88 billion, but pre-tax profits dropped by 33.1% to £317 million. The UK and Ireland had relatively strong sales growth of 1.7%, but France and Poland had a tougher time with LfLs down by -3.8% and -10.9%.

Kingfisher’s reported highlights

Group H1 total sales -1.0% and LFL -2.2%, with Q2 LFL -1.2% accelerating from Q1 (LFL -3.3%)

  • Positive UK & Ireland performance (LFL +1.7%) with strong market share gains at Screwfix
  • France (LFL -3.8%) saw resilient performance at Castorama; weaker at Brico Dépôt
  • Poland (LFL -10.9%) impacted by strong comparatives and weaker than expected Q2
  • Core and ‘big-ticket’ category sales LFL -1.0% (78% of sales), with volumes showing an improving trend through H1
  • Seasonal sales LFL -5.9% (22% of sales), with sequential improvement in Q2 driven by better UK weather conditions in May and June
  • H1 adjusted PBT down 28.8% to £336m, with UK & Ireland and France slightly ahead of expectations (the latter due to good cost control), more than offset by lower than expected Poland performance.
  • Statutory PBT down 33.1% to £317m

Thierry Garnier, Chief Executive Officer, said:

“Our LFL sales in H1 were slightly ahead of expectations, against a backdrop of unseasonal weather and ongoing macroeconomic challenges in our markets. We saw good growth in our UK banners, with Screwfix gaining significant market share. At the same time, we faced strong comparatives and a weaker trading environment in Poland, while consumer confidence in France is at a 10-year low. Overall, demand for our core and ‘big-ticket’ categories was healthy, and we were pleased to see an improving volume trend in these categories through the half”.

“We continue to make strong progress against our strategic priorities. E-commerce sales were up 7% in H1, supported by the continued success of our online marketplaces. B&Q’s marketplace sales reached 33% of its e-commerce business in July. We leveraged our data science capabilities to develop AI powered solutions such as our markdown tool, which in early pilots at B&Q delivered a very encouraging
margin improvement on clearance products. We also advanced our retail media plans through new partnerships to accelerate advertising income. And we continued to invest in dedicated ranges, tailored services and expert colleagues to better serve trade customers across all our banners, including launching ‘Pro’ zones in 27 stores in France and Poland.

 

 

 

 

 

VIEW KINGFISHER RESULTS


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