Kingfisher’s third-quarter performance was well received by analysts despite a drop off at B&Q.
Group retail profit grew 8.2% to £240m in the 13 weeks to October 30. Group revenue was up 0.3% to £2.7bn, and like-for-likes slid 1.2%.
Kingfisher’s overseas businesses, comprising those in France, Poland, Russia, Spain, Turkey and China, accounted for 80% of the profit.
B&Q UK and Ireland’s retail profit fell from £43m to £38m, while total sales declined 4.7% to £924m. Like-for-likes dropped 5.1%, compared with a “very strong” third quarter last year, when like-for-likes were up 5.7%. Kingfisher UK and Ireland’s retail profits, including the contribution from Screwfix, were down 0.6%.
Singer analyst Matthew McEachran said the update was “solid” and group profit met expectations. Although he noted that while B&Q’s profit performance was below expectations, international was “stronger than expected”.
Arden analyst Nick Bubb said group profit was still in line with his expectation of full-year pre-tax profits of £665m. “We retain our add view, given the strong balance sheet and the self-help management story,” he said.
Kingfisher group chief executive Ian Cheshire said: “We were able to maintain our profit for the quarter despite tough trading conditions and investment in developing both our consumer and trade offers.