Home Politics B&Q owner lifts profit forecast amid strong demand for kitchens | Kingfisher

B&Q owner lifts profit forecast amid strong demand for kitchens | Kingfisher

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The owner of B&Q and Screwfix has upgraded its profit forecast after reporting strong demand for its new kitchen ranges and garden products amid good summer weather.

Kingfisher, which runs DIY stores across Europe, including Castorama and Brico Dépôt France in France, posted sales growth of 1.9% at established stores in the six months to 31 July.

B&Q reported comparable sales growth of 4.4%, while Screwfix contributed 3% growth, and the retailer said trends were improving in France and Poland. Overall adjusted pre-tax profit rose by 10.2% to £368m.

The Kingfisher chief executive, Thierry Garnier, said sales of big-ticket items such as kitchens and bathrooms had grown for a third quarter in a row. Kingfisher now sells three price ranges of kitchens – Essential, Select, and Signature – to broaden its customer appeal. At B&Q, kitchen installations were up 36% year on year.

The company also hailed robust sales growth in seasonal products, including garden accessories, outdoor paint and plants, because of good weather in the UK.

“Our expectations for our markets for the year remain consistent with what we outlined in March, while mindful of mixed consumer sentiment and political uncertainty,” Garnier said.

“Combined with our first-half performance, this gives us the confidence to upgrade our full-year profit and free cashflow guidance and to accelerate our share buyback programme.”

Kingfisher is now targeting the upper end of its full-year profit range of £480m to £540m.

However, it flagged extra costs of £145m from wage inflation, higher UK employer national insurance contributions, increased social taxes in France and the new packaging fees in the UK.

It expects to fully offset them through higher gross profit margins and cost-saving measures, and also benefited from a £33m one-off business rates refund in the UK.

Shares in Kingfisher rose 17% in early trading in London on Tuesday.



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