Kingfisher posts jump in full year sales and profit
Kingfisher, the owner of B&Q and Screwfix, has seen a jump in full year sales and profit after its new strategy drove a strong financial performance.
In the year to 31 January, pre-tax profit climbed by 634% to £756 million as sales rose by 7.2% to £12.3 billion. Pre-tax profit on an adjusted basis rose by 44.4% to £786 million.
Sales at B&Q increased by 12.8% in the period as like-for-like sales climbed by 13%. Building and joinery was the retailer’s best performing category followed by outdoor, surfaces and décor.
Trading at Screwfix was also strong with total sales rising by 11.4% and like-for-like sales climbing by 6.6%. Ecommerce sales at the retailer jumped by 165% after orders were taken exclusively online from late March to late July due to the Covid-19 crisis.
Thierry Garnier, Kingfisher chief executive, said: “Kingfisher is coming out of the Covid crisis as a stronger business, with an improved competitive position in all key markets, strong new customer growth and a step change in digital adoption. I would like to express my personal thanks to all our teams for their incredible efforts in the most testing of circumstances.
“We rolled out our ‘Powered by Kingfisher’ strategy without delay and even accelerated in many areas. Our distinct retail banners are now empowered and much more agile, which enabled them to react quickly in what was a volatile situation last year, supported by the scale, strength and expertise of the Kingfisher Group.”
Giving an update on trading since 1 February in the UK and France, Kingfisher said sales have remained strong across all banners with growth in both transaction volume and average basket value. Like-for-like sales across the group increased by 24.2% in the seven weeks to 18 March.
Looking ahead, Garnier added: “Current trading remains positive and, while visibility is limited for the year as a whole, we are confident of continued outperformance of our wider markets. The Covid crisis has established new longer-term trends that are clearly supportive for our industry – including more working from home, the renewed importance of the home as a ‘hub’, and the development of a new generation of DIY’ers – and we expect these to endure. With our strategic progress, we are well positioned to capitalise on these new and positive market trends.”
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