Key facts
- Kingfisher lifted its profit target despite a decline in sales at B&Q.
- The company expects a £145 million hit from higher wages, taxes, and inflation.
- Statutory pre-tax profit fell 35% to £307 million for the year to January.
- Adjusted pre-tax profit decreased 7% to £528 million.
- Sales declined 1.7% group-wide, with France down 6.2%.
- Big-ticket item sales fell 4.4%.
Kingfisher, the owner of B&Q and Screwfix, has raised its profit forecast for the current financial year, citing resilience and growth opportunities, despite reporting a significant drop in statutory pre-tax profit for the year ending January 31. The company's statutory pre-tax profit fell 35% to £307 million, while adjusted pre-tax profits were down 7% to £528 million. This performance was impacted by weaker demand for "big-ticket" items like kitchens and bathrooms, which declined 4.4% year-on-year, and a 1.7% group-wide sales decrease, led by a 6.2% drop in France.
Despite these challenges, Kingfisher anticipates a £145 million impact from rising costs including wages, taxes, and inflation. The company expects adjusted pre-tax profit for the upcoming year to be between £480 million and £540 million. Sales in the UK and Ireland saw a slight increase of 0.2%, with Screwfix showing stronger performance due to demand from trade customers, though its growth slowed towards the end of the year. B&Q sales experienced a 6.2% decline in France, contributing to the overall group decrease.
In response to rising costs, Kingfisher plans to implement cost-saving measures, including reducing warehouse space by approximately 12% by the 2027-28 financial year. The group also aims to increase its market share by converting some of the eight Homebase stores it acquired after the rival's administration into B&Qs. Chief executive Thierry Garnier expressed confidence in the company's operational shape and growth prospects, while acknowledging short-term uncertainty regarding employment and mortgage rates.