Kingfisher’s revenue exhibited growth in its half-year period, although demand for large-value items faced challenges.
- B&Q, a key player under Kingfisher’s umbrella, experienced an 11.6% drop in big ticket sales, impacting overall performance.
- Despite this, group sales slightly decreased by 1.8%, while statutory pre-tax profit recorded a modest increase of 2.3% to £324 million.
- The DIY sector showed resilience with UK like-for-like sales barely dipping, but French operations saw a more significant downturn.
- Ecommerce and trade sales offered bright spots, demonstrating strong growth and substantial contributions to B&Q’s revenue.
Kingfisher, the parent company of B&Q, managed to achieve an increase in profit despite a significant decline in the sales of big ticket items, which fell by 11.6%. This decline in high-value item sales was a notable factor in the 1.8% dip in group sales.
In financial terms, Kingfisher reported a 2.3% rise in statutory pre-tax profits, reaching £324 million for the six months ending 31 July. This was achieved against a backdrop of challenging market conditions, particularly within its big ticket sales segment.
The company’s performance varied across different markets. In the UK, like-for-like sales saw only a minor decrease of 0.2%, showing resilience despite weather-related impacts on seasonal sales. However, in France, like-for-like sales dropped by 7.2%, indicating a stark contrast in market dynamics.
A recovery in seasonal sales was observed from early July, yet big ticket sales remained an area of concern with a 6.8% decline in like-for-like comparisons for the half-year. Despite these challenges, Kingfisher effectively managed its costs and inventory, according to CEO Thierry Garnier.
The UK division of B&Q recorded a 1% fall in like-for-like sales but benefited substantially from the robust performance of its ecommerce and TradePoint sales, which experienced a 7.1% growth. These sectors now comprise 22% of B&Q’s total sales. Furthermore, marketplace sales accounted for 40% of B&Q’s online sales.
Screwfix, another entity within Kingfisher’s portfolio, saw a 1.2% increase in sales. CEO Thierry Garnier highlighted that the overall first-half trading met expectations, primarily driven by customers focusing on the repair, maintenance, and renovation of their homes.
Garnier emphasised the continued market share growth in the UK and Ireland, bolstered by strong ecommerce performance and increased engagement with trade customers. He underscored Kingfisher’s strategic focus on maintaining cost efficiency and cash management.
With positive signs emerging in the housing market, especially in the UK, Kingfisher is well-positioned for future growth beyond 2025, aligning with its strategic priorities and market opportunities.
Kingfisher’s interim financial results reflect resilience and adaptability amid challenging market conditions, poised for strategic growth.
