Kingfisher has reported a slight increase in profits despite a drop in sales performance, particularly in large-scale purchases.
- Big ticket sales at B&Q fell sharply by 11.6% during the first half of the year.
- Overall group sales saw a slight decline by 1.8%, yet pre-tax profit increased by 2.3% to £324 million.
- The company witnessed a notable recovery in seasonal sales since early July, notwithstanding the continued weakness in big ticket sales.
- Strong ecommerce and trade sales led to a market share gain in the UK for Kingfisher.
Kingfisher, the parent company of B&Q, announced a modest profit increase in the face of declining sales, primarily due to a significant drop in demand for large-scale products. Big ticket sales at B&Q experienced a notable reduction of 11.6% over the reported period, impacting overall sales figures.
The conglomerate’s total sales decreased by 1.8%, yet it managed to record a statutory pre-tax profit growth of 2.3%, reaching £324 million in the six months leading up to the end of July.
Despite a minor 0.3% dip in like-for-like sales during the current quarter, with a 0.2% decrease in the UK due to weather-impacted seasonal sales, Kingfisher reported resilience. In France, however, like-for-like sales saw a steep decline of 7.2%.
Throughout the half-year, Kingfisher noted a recovery in seasonal sales from early July onwards. However, big ticket sales remained underwhelming, exhibiting a 6.8% decline in like-for-like sales.
Kingfisher’s CEO, Thierry Garnier, highlighted the company’s efficient cost management and inventory adjustments in this challenging context. The UK segment showed market share growth, bolstered by robust ecommerce and TradePoint sales, with a remarkable 7.1% increase in like-for-like sales.
TradePoint accounted for 22% of B&Q’s sales, while marketplace sales constituted 40% of its online revenue. Sales at Screwfix saw a slight improvement of 1.2% over the period.
Garnier remarked, “Trading overall in the first half was in line with our expectations. This was underpinned by customers continuing to repair, maintain and renovate their existing homes, driving resilient volume trends in our core product categories.”
He further emphasized the importance of their online presence and addressing trade customer needs to continue gaining market share. Garnier expressed optimism about 2025 and beyond, mentioning early signs of recovery in the housing market, especially in the UK.
Kingfisher remains poised for future growth by focusing on strategic priorities and managing costs effectively amid challenging sales.
