Kingfisher raises outlook as profits soar across Europe

The retailer – which owns British businesses B&Q and Screwfix as well as Castorama and Brico Depot in mainland Europe – reported adjusted pre-tax profits were up 62% year on year to £669m in the six months to July 31.

Sales also grew 22% to £7.1bn in the same period and 23% on a like-for-like basis, driven by strong demand in the home improvement sector.

The DIY specialist has hence upgraded its sales and profit outlook for the full year, with expectations profits will be in the region of £910m to £950m.

Kingfisher said ecommerce sales for the group increased by 21% year on year, ballooning 216% on a two-year basis as customers took advantage of digital hub capabilities such as click and collect and faster delivery times.

The retailer has been implementing its ‘Powered by Kingfisher’ strategy, delivering “ahead of schedule”, including the roll-out of more of its own-brand products, mobile-led innovations, testing compact store formats and progressing its responsible business plan.

Going forward, it has announced plans to open Screwfix stores in France, as well as to invest in faster fulfilment options.

Kingfisher chief executive Thierry Garnier said: “We have had a very strong first half of the year, with growth across all our categories and channels, particularly ecommerce. 

“This is a testament to the rapid progress being made against our strategic priorities which continue to drive customer engagement and an improved competitive position in our key markets. 

“We have navigated well through the challenging operational impacts of the pandemic, retaining good product availability at competitive prices and operating safely. 

“We have addressed many of Kingfisher’s past issues, with ‘fixes’ now complete in the UK and Poland. We are also on track in France, with positive results from our ongoing programme to repair our ranges and optimise the logistics network. Retail profit in France more than doubled in the first half. 

“The ‘Powered by Kingfisher’ strategy is moving forward at pace. With the business in a strong position, we are now ready to accelerate our investments to capitalise on the attractive growth opportunities available to us.  

“Our industry is benefiting from new trends that we believe will be supportive over the long term. These include people spending more time working from home, the emergence of a new generation of DIYers, the need for greener homes, and a strong housing market. Kingfisher is well placed to capitalise on these trends and deliver sustained outperformance.”