Posted 19th Sep 2018

Kingfisher profits drop by 18% in H1 2018

19th September 2018 - 10:51am
money matters, kingfisher, b&q, screwfix, performance, report, financial, kbb, kbbdaily

Kingfisher – the owner of B&Q and Screwfix – has reported an 18% decline in adjusted pre-tax profit for the first half of the 2018 financial year – reaching £323m – alongside a 1.2% rise in sales.

In the UK and Ireland, Kingfisher saw its sales drop by 0.5% on a like-for-like basis to reach £2.6bn against a “continuing weak consumer backdrop”. Like-for-like sales at B&Q declined by 2.5% to £1.8bn, while Screwfix saw like-for-like sales grow by 4.5% to £802m.

According to Kingfisher, Screwfix’s performance was driven by specialist trade desks exclusive to plumbers and electricians, as well as “strong digital growth” of 18% and the opening of 21 new outlets, taking the total to 598. The group said it is aiming to have 700 Screwfix outlets in the UK.

“The extent and pace of change in the retail sector is profound,” said CEO Véronique Laury. “We saw these changes and acted early. We’re now halfway through our ‘One Kingfisher’ transformation and we are well on our way to becoming a truly customer-led, digital, and efficient business.”

Laury added that “transformation on this scale is tough” and noted that the business is still working to “remove inefficiencies”. “The environment is making our task more difficult than expected and we will always take the right decisions for the company in the long-term.”

She said: “Our H1 results reflect a solid performance in the UK and Poland whilst France remains difficult. Looking to the full year we remain on track to deliver our strategic milestones for the third year in a row and have put actions in place to support our performance. The outlook for our main markets continues to be mixed.”

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