B&Q owner Kingfisher has reported a fall in annual profits despite an increase in like-for-like sales compared with pre-pandemic levels.
The home and DIY specialist reported gross profits of £4.7bn in the 12 months ending January 31, 2023, down 2.8% from the £4.9bn the previous year.
Sales were down 0.9% to £13bn compared with £13.1bn in 2021 – a 0.7% decrease in constant currency terms and 2.1% in like-for-like terms.
In the same period, the gross margin was 36.7%, down from 37.4% in 2021. Operating profits decreased to £723m – a 36.7% fall from £1.1bn the previous year.
The home and DIY specialist reported a statutory pre-tax profit of £611m, falling 39.3% from £1bn the previous year.
Total ecommerce sales were down 9.1% for the period, while total market penetration hit 16.3%.
Total UK and Republic of Ireland sales for the period were down 6.9%, sales in France were down 1.4%, while sales in other international markets were up 11.2%.
In the UK, B&Q sales for the period were down 8.8% while sales at Screwfix were down 3.4%.
Kingfisher chief executive Thierry Garnier said: “Across all our markets, sales have remained resilient in both DIY and DIFM/trade channels, with like-for-like sales 15.6% ahead of pre-pandemic levels.
“We have maintained a sharp focus on pricing to deliver value to our customers during this challenging period for household finances, while at the same time managing our cost inflation pressures effectively. Strong supply chain management has ensured good product availability and a firm grip on our inventories.
“We remain confident in both the growth of our industry and in our strategic priorities supporting growth ahead of our markets. And we are announcing today our new medium-term financial priorities, focused on growth, cash generation and higher returns to shareholders.”
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