Kingfisher posts strong sales and profit growth
Kingfisher, the owner of DIY chain B&Q and Screwfix, has increased its full year adjusted pre-tax profit by 8.3% to £743 million as the company benefited from rising sales in the UK and Poland.
In the year to 31 January total adjusted sales climbed by 8.7% £11.2 billion.
Véronique Laury, Kingfisher chief executive, said: "It has been a very productive and important year, a year which has again delivered sales and profit growth. I am really pleased that our performance has been achieved alongside delivering the key first year strategic milestones of our ambitious five year transformation plan, based on creating a unified company where customer needs come first.”
Kingfisher UK & Ireland sales rose by 2.4% with like-for-like growth of 5.9%. Retail profit increased by 9.9% to £358 million.
Total sales at B&Q declined by 3.3% reflecting planned store closures although like-for-like sales increased by 3.5%. Total digital sales, including home delivery, continued to make good progress with sales climbing by 45%.
Meanwhile, total sales at Screwfix surged by 23.2% with like-for-like sales up 13.8%. This was driven by strong growth from the specialist trade desks exclusive to plumbers and electricians, buoyant online sales and the rollout of new outlets. Screwfix now operates from 517 stores in the UK as it looks to reach a target of 700.
In France, total sales at Castorama were down 2.4% and by 3% on a like-for-like basis while Brico Dépôt total sales were broadly flat and down 2.3% like-for-like.
Sales in Poland rose by 10.1% with like-for-like sales up 7.5% as Kingfisher benefited from a supportive market and new ranges. Total sales in Russia edged down 0.2% but rose by 0.3% on a like-for-like basis.
Laury added: "Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections. Looking longer term, supported by the expertise and energy of our colleagues, we remain confident in the size of the prize and our ability to deliver the plan - both the financial benefits the transformation will unlock and the stronger business it will create."
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