Kingfisher, the parent company of B&Q, reported increased profits despite a decline in ‘big ticket’ item sales.
- B&Q’s large item sales fell by 11.6%, though overall group sales were down by just 1.8%.
- Pre-tax profits saw a modest rise of 2.3% to £324 million in the first half of the year.
- Ecommerce and TradePoint sectors helped bolster the company’s performance with significant growth.
- Kingfisher’s CEO highlighted strategic resilience and market share gains amid tough market conditions.
The parent company of B&Q, Kingfisher, has successfully increased its profits despite experiencing a decline in sales for large items, often referred to as ‘big ticket’ sales. The company reported an 11.6% drop in such sales over a recent period, contrasting with a smaller overall sales decline of 1.8%.
Pre-tax profits, however, edged up by 2.3%, reaching £324 million for the six months ending 31 July. This financial performance comes even as like-for-like sales in the current quarter have dipped slightly by 0.3% overall, with the UK market seeing a minor 0.2% decline. Despite these figures, the company remains confident, citing the resilience of its UK operations despite seasonal sales impacts due to weather.
In France, however, the business faced more significant challenges with a 7.2% drop in like-for-like sales. Kingfisher noted a recovery in seasonal sales starting early July; nonetheless, big ticket sales continued to underperform, showing a 6.8% decrease over the half.
Chief Executive Thierry Garnier acknowledged the effective management of costs and inventory, which played a key role in maintaining profitability during this period. He emphasized that the brand has expanded its market share in the UK.
Although B&Q experienced a 1% fall in like-for-like sales, the company benefited from robust performance in its ecommerce and TradePoint divisions, indicating a 7.1% growth in these areas. These sectors now account for 22% of B&Q’s total sales, with marketplace transactions comprising 40% of online sales.
Another noteworthy aspect is the performance of Screwfix, which showed a modest sales growth of 1.2% over the six-month period. The company is optimistic about its future, with Garnier citing ongoing efforts to cater to trade customer needs and the bright prospects of a housing market recovery, particularly in the UK.
Kingfisher remains optimistic about future growth, underpinned by strategic management and market adaptability.
