Kingfisher posts drop in annual profit
Kingfisher has posted a drop in annual profit as customers cut back on home improvement spending during the cost-of-living crisis.
In the year to 31 January 2023, the owner of B&Q and Screwfix saw its adjusted pre-tax profit decline by 20.2% to £758 million, although sales edged up 0.7% on a constant currency basis to £13.06 billion. Meanwhile like-for sales were up 15.6% on pre-pandemic levels but down 2.1% year-on-year.
Thierry Garnier, Kingfisher chief executive, said: “Across all our markets, sales have remained resilient in both DIY and DIFM/trade channels, with like-for-like sales 15.6% ahead of pre-pandemic levels. We have maintained a sharp focus on pricing to deliver value to our customers during this challenging period for household finances, while at the same time managing our cost inflation pressures effectively. Strong supply chain management has ensured good product availability and a firm grip on our inventories.”
Giving an update on current trading, Kingfisher said like-for-like sales edged up 0.5% in February following a good performance in the UK and Ireland and resilient sales in big ticket categories.
Garnier added: “We remain confident in both the growth of our industry, and in our strategic priorities supporting growth ahead of our markets. And we are announcing today our new medium-term financial priorities, focused on growth, cash generation and higher returns to shareholders.”
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