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Kingfisher maintains strong sales after lockdown boom in DIY and home improvements

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Kingfisher maintains strong sales after lockdown boom in DIY and home improvements


Kingfisher B&Q

Kingfisher has consolidated its pandemic-driven growth with strong sales across key territories such as the UK & Ireland.

The group has over 1,300 stores in nine countries, and its brands include B&Q, Castorama and Screwfix.

The boom in home improvement and DIY projects following multiple lockdowns and sustained social restrictions over the past two years has maintained the multinational company’s momentum in the third-quarter.

Sales in its biggest market, UK & Ireland, remain 15.7 per cent higher like for like than two years ago, with domestic revenues of £1.54bn while total group revenues ex-Russia have reached £3.25bn.

Results are down on last year’s totals with like-for-like declines in revenues of 3.5 per cent in the UK & Ireland, 4.3 per cent in France and 1.9 per cent in Iberia.

Other markets such as Poland and Romania continued to record improved results why figures also varied company by company.

For instance, Screwfix continues to enjoy sustained growth, reporting a year-on-year rise of 3.9 per cent in revenues.

By contrast, French retailers Castorama and Brico Dépôt recorded losses of 12 per cent and 6.7 per cent respectively.

Kingfisher is pleased with how it has managed product availability, logistics, and inflationary pressures.

It has now commenced a £300m share buyback programme, with £67 million completed so far.

The group has enjoyed a strong start to its the fourth quarter, with like-for-like sales on a two-year basis already up 13.2 per cent.

It now expects second-half like-for-like sales and full year adjusted pre-tax profit to be towards the higher end of previously guided ranges.

This would mean two-year like-for-like increased revenues of 9 to 13 per cent and a year-on-year decline of between seven and three per cet.

It also anticipates adjusted pre-tax profit to be towards the higher end of its previously guided range, reaching between £910 million and £950 million.

Thierry Garnier, chief executive officer, said: “We have entered our final quarter with positive momentum and now expect sales and profits to be towards the higher end of our previously guided ranges. Overall, with strong execution and supportive new long-term trends for our industry, we remain confident of continued outperformance of our markets.”

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