Kingfisher boosts profits following strong strong perfomance in UK and Poland
B&Q and Screwfix owner Kingfisher has announced that its first half underlying pre-tax profit rose by 13.5% to £436 million as it reported that since EU referendum there has been no clear evidence of an impact on demand so far on its businesses.
In the six months to 31 July, adjusted total sales rose by 2.7% to £5.7 billion as the retailer benefited from a strong performance in the UK and Poland.
The group reported a 10.6% increase in statutory pre-tax profit to £427 million.
Kingfisher UK and Ireland sales climbed by 3.1% to £2.6 billion and by 6.7% on a like-for-like basis. Retail profit in the UK and Ireland grew by 8.8% to £211 million.
Véronique Laury, Kingfisher chief executive, said: "It has been a productive first half. We have delivered a good 'business as usual' result with both sales and profit growth. Performance has been driven by Poland and the UK, especially Screwfix, and a stable profit performance in France. This has been achieved alongside managing the start of our ambitious transformation plan, based on creating a unified company where customer needs come first.”
Like-for-like sales at B&Q rose by 4.6% with like-for-like sales of outdoor seasonal products up 1.6% and indoor products up 5.9%.
Meanwhile, like-for-like sales at Screwfix increased by 14.7% driven by strong growth from its specialist trade desks exclusive to plumbers and electricians, good digital growth and the continued roll out of new outlets.
Looking ahead, Laury added: "Looking longer term, we are starting to build solid foundations to enable us to deliver our five year transformation, which is our key growth driver. We are making good progress on our strategic milestones for this first year and we are on track. The level of transformation activity will increase significantly, however given the expertise and energy of our colleagues we continue to feel confident about the challenges ahead."
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