CITY & CORPORATE
Kingfisher plc reports strong profits
16 September 2010 | by The Retail Bulletin
Strong growth in main operating divisions for the 26 weeks ended 31 July 2010Group retail profit was up 15.8% at £402 million (2009: £347 million)with strong growth achieved in each of the three main operating divisions including French profits, up 13.7% to £160 million benefiting from good sales growth and continuing margin initiatives.
UK & Ireland profits were up 15.8% to £171 million. B&Q retail profit margin continued to improve, benefiting from margin and cost initiatives. The companies’ TradePoint roll out in 118 large format stores was successfully completed.
Other International profits were up 21.0% to £71 million. Profit growth in Spain and Turkey, and a halving of China losses more than offset a slight profit decline in Poland.
Ian Cheshire, Group Chief Executive, said, ‘We have traded well with profit again strongly ahead and financial debt reduced. Our Delivering Value programme of self-help initiatives is working well, meaning Kingfisher now generates significantly higher profits and cash flow from its operations and a much better return on capital for its shareholders.
‘As we have consistently said, the immediate outlook for consumer spending is fragile, particularly in the UK where it is likely to remain challenging for some time. Our continued profit growth will come from our well-established self-help initiatives, including sourcing more products through our global network and vigorously driving operating cost efficiencies. At the same time our strong balance sheet and cash flow enables us to continue to invest more this year to grow our business, refresh our stores and introduce new products and services to provide the inspiration and solutions our customers want to help them improve their homes.’
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