Six months to 31 July 2016
The latest results for Kingfisher are only available to subscribers.
Q2 to 31 July 2016
UK & IRELAND • Total sales +5.0 per cent. LFL +7.2 per cent benefiting from continued strong Screwfix performance• B&Q UK & Ireland sales +0.3 per cent despite store closures. LFL +5.6 per cent including c.2 per cent benefit from sales transference associated with store closures. LFL of seasonal +9.6 per cent. LFL of non-seasonal, including showroom +3.4 per cent• Screwfix sales up +24.5 per cent. LFL +13.3 per cent driven by its leading omnichannel capability, new and extended ranges and new outletsFRANCE • Total sales -1.4 per cent (LFL -3.2 per cent). Sales for the home improvement market (Banque de France data) -1.1 per cent in Q2; new housing starts +5.7 per cent; planning permits +10.3 per cent• Castorama sales -2.2 per cent (LFL -3.3 per cent) reflecting less promotional activity. LFL of seasonal -4.3 per cent. LFL of non-seasonal, including showroom -3.0 per cent• Brico Dépôt sales -0.3 per cent (LFL -3.1 per cent)OTHER INTERNATIONAL • Sales in Poland +10.5 per cent (LFL +7.3 per cent) benefiting from a currently supportive market and new ranges. LFL of seasonal +10.7 per cent. LFL of non-seasonal, including showroom +6.5 per cent
Véronique Laury, Chief Executive Officer, said: “We have delivered another solid sales performance in Q2 driven by the UK and Poland. In the UK, the EU referendum result has created uncertainty for the economic outlook, although there has been no clear evidence of an impact on demand so far on our businesses. In France, widespread industrial action and exceptionally wet weather created a more challenging environment, after a more encouraging Q1. We remain cautious on the short-term outlook.“In the meantime, we continue to focus on our ONE Kingfisher plan, based on always putting customer needs first. We look forward to updating you on our early progress at our half year results next month.”
Q1 to 30 April 2016
UK & IRELAND • Total sales +1.2 per cent. • LFL +6.2 per cent benefiting from a supportive backdrop and continued strong Screwfix performance • B&Q UK & Ireland sales: -4.3 per cent reflecting store closures. • LFL +3.6 per cent including 1.9 per cent benefit from sales transference associated with store closures. • LFL of seasonal -14.3 per cent. LFL of non-seasonal, including showroom +7.3 per cent • Screwfix sales up +23.5 per cent (LFL +16.2 per cent) driven by its leadFRANCE • Total sales +2.2 per cent (LFL +0.2 per cent). Sales for the home improvement market (Banque de France data) +1.7 per cent in Q1; new housing starts +3.0 per cent; planning permits +7.5 per cent• Castorama sales +0.2 per cent (LFL -0.9 per cent) reflecting less promotional activity. LFL of seasonal -9.0 per cent. LFL of non-seasonal, including showroom +0.6 per cent • Brico Dépôt sales +4.5 per cent (LFL +1.5 per cent)OTHER INTERNATIONAL • Sales in Poland +12.6 per cent (LFL +10.8 per cent) benefiting from a currently supportive market and new ranges. LFL of seasonal +10.4 per cent. LFL of non-seasonal, including showroom +10.9 per cent • Sales in Russia -5.7 per cent (LFL -4.5 per cent) reflecting strong comparatives (Q1 2015/16: +31.3 per cent LFL)
Given the slowdown in the overall DIY and Gardening market of late, in part due to the unseasonably wet and cooler weather, especially over the Easter Bank holiday weekend, these results are better than expected and show strong progress with the five year strategic plans.B&Q suffered from negative total sales, as the on-going closure of stores continues to be implemented, while LFL rose by 3.6 per cent. We note the challenging performance of seasonal goods which fell by 14.3 per cent during the period. This was partially offset by strong performance of big-ticket items with LFL non-seasonal, including showroom, up 7.3 per cent. Screwfix continued to beat expectations with sales up 23.5 per cent (LFL +16.2 per cent).
Véronique Laury, Chief Executive Officer, said: "We have made a solid start to the year, trading in line with expectations. "In addition, I am pleased with the early progress we are making on our operational milestones for this year, the first year of our ambitious five year plan. We continue to feel confident in our ability to deliver our plan, based on putting customer needs first, supported by the expertise and enthusiasm of our colleagues."
Full Year Results
Final results for the year ended 31 January 2016
Group• Adjusted sales £10,331m FY2016 (£10,605m FY2015) – down (2.6) per cent• Retail profit £746m FY2016 (£742m FY 2015) – up 0.7 per cent• Adjusted pre-tax profit £686m FY2016 (£684m FY2015) – up 0.3 per cent• Total adjusted sales in constant currencies up 3.8 per cent (France +1.2 per cent; UK & Ireland +5.6 per cent; Other International +4.8 per cent)• Retail profit in constant currencies up 7.4 per cent (France (1.6) per cent; UK & Ireland +18.0 per cent; Other International +6.4 per cent)• Adjusted pre-tax profit of £686m driven by strong UK profit growth, impacted by £46m adverse foreign exchange movements on the translation of non-sterling retail profits• Returned £432m of cash to shareholders (£232m dividend; £200m buyback)
These are a solid set of results with PBT and net cash exceeding expectations with the business delivering on the transformational targets set out by the board previously. Overall growth was driven by the UK business which saw total sales up by 5.5 per cent. Screwfix was the star performer and continued to deliver strong growth of 26.3 per cent. The France business saw a stable performance. Currency fluctuations had a significant impact on the results and, on a constant basis, retail profit would have risen by 7.4 per cent instead of the adjusted 0.7 per cent. The B&Q business saw marginal growth, albeit on the back of 30 store closures in the period, around half of the 65 planned store closures by FY2016/17. The transformational programme is in full-swing with the business expecting to deliver £500m of profit uplift by FY2021.
Véronique Laury, Chief Executive Officer, 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."
Financial results for the 13 weeks ended 31 October 2015
UK & IRELAND• Total sales up 5.5 per cent (+4.6 per cent LFL) • B&Q UK & Ireland’s sales up 1.2 per cent (+2.4 per cent LFL). Sales of outdoor seasonal and building products up 6.3 per cent. Sales of indoor products, excluding showroom up 1.8 per cent. Sales of showroom products up 0.4 per cent• Screwfix sales up 23.4 per cent (+13.3 per cent LFL) driven omnichannel trade sales, new and extended trade ranges and 13 new outlets• UK gross margins down 120 basis points reflecting mix effects from strong growth in Screwfix and higher sales of seasonal categories in B&Q. This was however offset by on-going cost initiatives at B&Q and the strong overall performance at ScrewfixFRANCE• Total sales up 1.5 per cent (+0.1 per cent LFL) reflecting a continuing soft market• Castorama sales up 0.5 per cent (-0.2 per cent LFL)• Brico Dépôt sales up 2.8 per cent (+0.4 per cent LFL) impacted by the on-going slow house building market• France gross margins down 30 basis points largely reflecting more price promotional activity. Cost growth reflects increased store development activity compared to last yearOTHER INTERNATIONAL• Total sales up 5.4 per cent (+2.8 per cent LFL) reflecting LFL growth in Poland and Russia• Sales in Poland were up 3.4 per cent (+3.5 per cent LFL) benefiting mainly from new ranges. Gross margins were flat. Cost growth reflects increased store development activity compared to last year
Kingfisher reported Q3 sales of £2.7 billion, +2.6 per cent LFL and retail profit of £223 million, up 0.4 per cent in constant currencies. The UK market saw revenues of £1.2 billion with trading supported by an improving economic environment, robust consumer confidence and renewed strength in the housing market. The French market remains soft with total revenue reaching £900m and according to Banque de France data, sales for the home improvement market were broadly flat. Overall, the improving UK market which saw profits of £80 million, up 14.2 per cent on the year, was offset by a deteriorating international market – particularly in France where profits fell to £109 million, down 15.7 per cent.
Véronique Laury, Chief Executive Officer, said: “Q3 trading conditions have followed a similar trend to the first half of the year, reflecting the more encouraging macroeconomic backdrop in the UK offset by a softer market in France. “In the meantime, we continue to make good progress with our ‘ONE’ Kingfisher plan. The unified IT system, a key enabler of this journey, continues to progress well. In addition we have secured a further five agreements on the B&Q stores already planned for closure, taking the total to 31. I am very encouraged by development work on the first wave of the unified ‘core essential’ ranges, which will land in stores from next year. We now look forward to updating you on the detail of our long term strategy in early 2016.”