THE RETAIL BULLETIN - The home of retail news
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Health & Beauty
General Merchandise
Sports & Leisure
The Papers
Retail Solutions
Food & Drink
Kingfisher posts fall in profits as turnaround plan continues

Kingfisher, the owner of B&Q and Screwfix, has reported a 20.5% fall in full year profit as the group presses on with its turnaround plan.


Kingfisher posts fall in profits as turnaround plan continues

Kingfisher, the owner of B&Q and Screwfix, has reported a 20.5% fall in full year profit as the group presses on with its turnaround plan.

In the year to 31 January, statutory pre-tax profit fell to £512 million from £644 million in the previous year although adjusted pre-tax profit, which excludes the impact of exceptional items, edged up 0.3% to £686 million.

Having announced last year that it planned to shut 65 B&Q stores in the UK and Ireland over two years, today the group said 30 of these stores had now closed down.

Kingfisher chief executive Véronique Laury said: "This has been a very productive and important year. We have delivered a good 'business as usual' result with both sales and profit growth in constant currencies, driven by our performance in Poland and the UK, driven largely by Screwfix, and a stable performance in France.

"We have also delivered solid progress on the first sharp decisions announced last year. I am really pleased with the focus and the energy that the team has demonstrated during the year.

"In addition, in January we revealed our ambition and our five year plan. By putting customer needs first we will, by the end of that period, deliver a £500 million sustainable annual profit uplift, over and above 'business as usual'. It is an ambitious plan. However based on the solid progress so far, and the competence and enthusiasm of our colleagues, we feel very confident in our ability to deliver."

Like-for-like sales at B&Q increased by 1.9% in the year while total sales edged up 1.1% to £3.799 billion. Kingfisher said B&Q continued to see productivity benefits from initiatives such as 'store friendly deliveries' and roller checkouts. The retailer has also made its 'Click, Pay & Collect' service available on over 16,700 products. Total transacted online sales, including home delivery, continued to make good progress with sales growing by 29%.

Meanwhile, total sales at Screwfix climbed by 26.3% to £1.054 billion and by 15.3% on a like-for-like basis.

Looking ahead, Kingfisher chief financial officer Karen Witts said: "We have set ambitious and clear five year financial targets, which will drive a considerable increase in the value of our business for shareholders. We are tracking our progress against our financial and operational milestones, and we will update as we progress.

"In the short term, the fundamentals of the UK economic backdrop remain positive, although we remain cautious on the outlook for France. The outlook for the wider global economy remains uncertain, and the impact of the outcome of the UK EU referendum is unknown."


Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News


Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Conference
The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
The 11th HR Summit 2019, Hallam Conference Centre, 44 Hallam St, Marylebone, London W1W 6JJ
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy