Home improvement group Kingfisher has delivered a year of record revenue and profits as it gained market share in both the UK and France.
In the year to 31 January 2022, group sales rose 6.8% to £13.18bn with adjusted profit before tax up 20.9% to £949m.
Like-for-like sales at B&Q and Screwfix increased by 12.3% and 10.9% respectively after benefitting from the DIY boom during the pandemic. Meanwhile, sales in France, where Kingfisher operates the Castorama and Brico Dépôt chains, rose by 9.3%.
Chief Executive, Thierry Garnier, commented: “Kingfisher has delivered a year of very strong financial performance. We saw growth in all banners and categories, with resilient demand from both DIY and DIFM/trade segments – each representing 50% of group sales.
“We continue to leverage our stores assets and group technology to drive forward our e-commerce proposition, with faster click & collect and home delivery, and broader product choices for our customers.”
On current trading, Kingfisher revealed that its first-quarter like-for-like sales to 19 March were down by 8.1%, reflecting tough comparatives with the prior year. However, sales were up 16% when compared to the corresponding period two years ago. The group said it has seen resilient demand across all markets which has been supported by good stock availability. It has also benefited from strong demand for big ticket items despite concerns around soaring inflation and the cost-of-living crisis.
“While the macroeconomic and geopolitical environment is uncertain, you can expect from us continued focus on top-line delivery and market share growth, strong execution, effective management of our gross margin, and active and responsive management of our operating costs,” said Garnier.
He stated that the business was in a strong position and was accelerating its investments for growth. These include the recent launch of an e-commerce marketplace, the expansion of Screwfix in the UK and France, new store openings in Poland, and plans to increase its trade customer base.
Garnier concluded: “Looking forward, we are confident that these investments, supported by continued strong execution and the new demand drivers we are seeing in our industry, will drive faster growth in sales, profit and free cash flow.”
NAM Implications:
- Right place, right time, just right!
- Given the inevitable high levels of unemployment in the pipeline…
- …and those in employment being too busy for DIY…
- …it is probable that Do-It-For-Me has an even brighter future?
- Time for a switch of emphasis in RetailMedia?
