Kingfisher posts first half sales and profit jump
Kingfisher, the parent company of B&Q and Screwfix, has increased its first half adjusted pre-tax profit by 61.6% to £669 million after it benefited from a boom in DIY during the coronavirus pandemic.
Sales in the the six months to 31 July climbed by 22.2% in constant currency to £7.1 billion after trade was driven by demand for home improvement products across the group’s retail and trade channels. Like-for-like sales also saw a strong uplift, rising by 22.8% year-on-year and by 21.3% compared to two years ago.
On a statutory basis, pre-tax profit increased by 70.6% to £677 million.
The group achieved a particularly strong performances in the UK and Ireland, France, Iberia and Romania. However, trade in Poland was impacted by Covid-19 related temporary store closures in the group’s first quarter.
Meanwhile, retail profit was up 45.1% in constant currency, driven by strong UK and Ireland profit growth and France profit growth of over 100%.
Thierry Garnier, Kingfisher chief executive, said: “We have had a very strong first half of the year, with growth across all our categories and channels, particularly e-commerce. This is a testament to the rapid progress being made against our strategic priorities which continue to drive customer engagement and an improved competitive position in our key markets. For this, I remain extremely grateful to all our colleagues for their continuous effort and outstanding customer service.”
Kingfisher said it had made a good start to the second half of the financial year, with resilient demand across all markets.
Third quarter like-for-like sales to 18 September were down own 0.6% on the same period last year, but up 16.1% on a two-year basis.
The group is now increasing its second half sales expectations by planning for like-for-like sales scenarios of -7% to -3% compared to a previous -15% to -5%. This will be mark an increase of between 9% and 13% compared to two years ago. In addition, it is anticipating that full year adjusted pre-tax profit will be in the range of around £910 million to £950 million.
Never Miss a Retail Update!Kingfisher also revealed that it is accelerating Screwfix’s expansion in the UK and Ireland, and will open its first Screwfix stores in France in 2022.
Looking ahead, Garnier said: “Our industry is benefiting from new trends that we believe will be supportive over the long term. These include people spending more time working from home, the emergence of a new generation of DIYers, the need for greener homes, and a strong housing market. Kingfisher is well placed to capitalise on these trends and deliver sustained outperformance.”
