Kingfisher hit by weak performance in France
Kingfisher, the parent company of B&Q and Screwfix, has reported a decline in sales and profit following a weaker performance in its business in France.
Sales in the year to 31 January dropped by 1.8% at constant currency to £12.9 billion and by 3.1% on a like-for-like basis.
While sales in the UK and Ireland edged up 0.8% following market share gains, sales in France fell by 5.9%.
Meanwhile, adjusted pre-tax profit declined by 25.1% to £568 million after retail profit dropped by 18.9%.
Thierry Garnier, chief executive of Kingfisher, said: “In the UK & Ireland, B&Q, TradePoint and Screwfix each delivered resilient sales and market share growth – in particular very strong gains at Screwfix.
“In France, where the market has been impacted by low consumer confidence, we have made significant adjustments to the cost base and started to embed e-commerce marketplace and trade customer initiatives similar to those successfully implemented in the UK.
“And in Poland, where we faced strong comparatives and a tough economic backdrop, sales trends are gradually improving in line with the consumer environment.”
Kingfisher said it is looking to open up to 40 new stores in the current financial year for Screwfix in the UK and Ireland and up to 15 shops for the brand in France. It is also launching new online marketplaces in France and Poland following strong results at B&Q.
In addition, it will be working to simplify French organisation and improve performance and profitability at Castorama in the country.
Giving an update on current trading, Kingfisher said first quarter like-for-like sales are currently down 2.3%, although there has been an improving trend in the UK and Ireland, France and Poland, compared to the fourth quarter of the previous financial year
For the current year, pre-tax profit is expected to come in at between £490 million to £550 million.
Garnier added: “Looking forward, we remain confident in the attractive growth prospects of the home improvement industry and our ability to grow ahead of our markets.
“In the short term, while repairs, maintenance and renovation activity on existing homes continue to support resilient demand, we are cautious on the overall market outlook for 2024 due to the lag between housing demand and home improvement demand.
“Against this backdrop we will remain agile and focused on what is within our control – leveraging our strategy to deliver market share growth, driving productivity gains, and managing our costs and cash effectively.”
