B&Q and Screwfix owner hails ‘rapid progress’ as profits jump
Kingfisher, which also owns French brand Castorama, revealed that pre-tax profits rose by 23% to £378 million for the year to January 31.
Home improvement giant Kingfisher has revealed a jump in profits for the past year on the back of cost-saving efforts and “standout” performances from its B&Q and Screwfix brands.
Bosses at the FTSE 100 company said it has made “rapid progress” in its growth strategy as they hailed the “strong” performance.
The group, which also owns French brand Castorama, revealed pre-tax profits rose by 23% to £378 million for the year to January 31.
Meanwhile, adjusted profits were up 6% to £560 million.
The retail group said it expects profits to grow again this year, guiding towards adjusted profits of between £565 million and £625 million for the current financial year.
It said profits strengthened after “more than offsetting cost pressures” during the year.
The group was nevertheless impacted by wage increases, higher UK employer national insurance contributions and costs from store openings.
Boss Thierry Garnier told reporters on Tuesday he expects “limited” cost impact from the US-Israeli conflict with Iran.
Attacks in the Middle East and disruption to shipping has driven surges in oil and gas prices.
However, Kingfisher said it is “well-hedged” on energy and does not expect a significant impact in the short term.
Mr Garnier added: “We are very mindful of the crisis and the impact on customers.
“We have no operations in the region and have only two suppliers in this area, so are expecting a very limited impact.”
Meanwhile, total sales across the group grew by 1.3% to £12.95 billion for the year.
Kingfisher linked this to strong sales in the UK, with like-for-like growth of 3.3% for B&Q and 3.2% for Screwfix.
The two brands were buoyed by online and trade initiatives, new products, positive weather conditions and the closure of Homebase stores early last year.
Total sales across the brands were also boosted by the opening of 34 new stores.
However, bosses have said the consumer backdrop is still “mixed” as many households face rising living costs.
Mr Garnier said: “We have continued to execute our strategy at pace and delivered good margin and cost discipline.
“We are making rapid progress against our strategic priorities across our banners.
“With a mixed consumer environment across our markets, we continue to focus on delivering our strategic priorities, maintaining cost discipline and driving shareholder returns.
“This positions us well to capitalise on the attractive long-term structural growth opportunities within our markets.”
