Kingfisher has said it is “ahead of schedule” with its new strategy after reporting record profits and sales last year.

For the year to January 31, Kingfisher reported a 33% increase in statutory pre-tax profits to more than £1bn and a 6.8% increase in revenues to £13.2bn.

Gross profits jumped 7.9% to £4.9bn, while operating profits leapt 25% to £1.1bn. 

In terms of adjusted metrics, retail profit for Kingfisher was up 17% to £1.1bn “driven by strong growth” in the UK, Ireland and France; adjusted pre-tax profits were up 21% to £949m; and the retail profit margin was up by 60 basis points. 

UK and Ireland sales were up 11.9% for the period, with B&Q a 12.3% like-for-like sales increase and Screwfix a 10.9% jump. Sales in France jumped 9.9% for the period, while Kingfisher’s other international markets delivering 5.5% growth.

Overall, group like-for-like sales for the period were up 9.9%. Ecommerce sales also jumped, up 5.3% on a year-on-year basis, and more than 170% on a two year comparison.

Kingfisher said it had experienced a slower start to the 2022/23 financial year, with sales in the first quarter down 8.1% year on year. Despite this, sales were still up 16% on a two-year comparative basis. 

The Screwfix and B&Q owner also said there was “strong big-ticket demand” from customers despite the “heightened” level of global financial and political instability. 

Kingfisher chief executive Thierry Garnier said: “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 ecommerce proposition, with faster click and collect and home delivery, and broader product choices for our customers.

“Eighteen per cent of our sales are now made online, which is ten percentage points higher than two years ago. B&Q had an outstanding year, with sales passing £4bn. It was also a record year of expansion for Screwfix, with 70 new stores opened in the UK and Ireland, and Screwfix France showing very promising early progress.  

“For the year ahead, 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.

“We are now over two years into our new strategy and execution is ahead of schedule. With the business in a strong position, we are accelerating our investments for growth – through the launch of our scalable ecommerce marketplace, the expansion of Screwfix in the UK and France, new store openings in Poland and our plans to increase our trade customer base.

“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.”

Topics