Kingfisher struggling with rising wages and energy bills

Kingfisher has been forced to slash £10 million from the top end of its profit guidance as it struggles to handle rising wages and energy bills.

The DIY retail group, which owns both Screwfix and B&Q, said its full-year adjusted pre-tax profit would now come within the range of £730 million to £760 million.

Sales increased in the three months to 31 October. Total group sales increased by 1.7% to £3.26 billion on a constant currency basis, while like-for-likes rose 0.2%, marking a 15.3% increase on pre-pandemic levels as a result of increased market gains.

The company has enjoyed a good start to trading in Q4 with three year like-for-like sales up 16.2%.

Sales in the UK and Ireland rose by 0.1% year-on-year in constant currencies.

Total sales at B&Q were down 2.7% during the quarter, while like-for-likes fell 3.5%. Screwfix recorded a 4.9% rise in total sales, but like-for-likes slipped 0.5%.


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Kingfisher said it was seeing resilience in outdoor and “big-ticket” category sales trends amid the cost-of-living crisis.

It also claimed it had effectively managed both rising inflation and supply chain pressures.

In-store product availability has also returned to pre-pandemic levels after issues within the supply chain previously left gaps on shelves.

“Kingfisher has delivered a very resilient first half of sales. While facing very strong comparatives from the prior year as well as a more challenging environment,” Kingfisher chief executive Thierry Garnier said.

“Looking to the months ahead, although trading in the year to date has been in line with our expectations, we remain vigilant against the more uncertain economic outlook for the second half.

“We are therefore focused on delivering value to our customers at a time when they need it most. You can expect continued strong execution, with a focus on growing sales and market share, effective management of our gross margin, and alignment of our costs and inventories to market conditions.”

Full results can be found below:

Sales

2022/23

% Total

Change

% Total

Change

% LFL

Change(2)

% 3-year LFL

Change(3)

£m

Reported

Constant currency

Constant currency

Constant currency

UK & Ireland

1,545

+0.1%

+0.1%

(2.3)%

+12.9%

– B&Q

935

(2.8)%

(2.7)%

(3.5)%

+13.1%

– Screwfix

610

+4.8%

+4.9%

(0.5)%

+12.4%

France

1,097

(1.2)%

+0.6%

+0.5%

+14.6%

– Castorama

564

(0.9)%

+0.8%

+0.8%

+16.6%

– Brico Dépôt

533

(1.5)%

+0.2%

+0.2%

+12.7%

Other International

621

+5.1%

+8.4%

+6.7%

+23.1%

– Poland

447

+6.6%

+10.5%

+7.6%

+21.3%

– Iberia(4)

91

+1.6%

+3.4%

+3.4%

+19.8%

– Romania

80

+2.3%

+4.2%

+4.2%

+34.6%

– Other(5)

3

n/a

n/a

n/a

n/a

Total Group

3,263

+0.6%

+1.7%

+0.2%

+15.3%

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