Business

B&Q owner Kingfisher sees profit jump 21% on Covid-19 boost

Sales increased as people stayed at home, had fewer leisure options and travelled less

Kingfisher owns Screwfix and B&Q. Photograph: Paul Faith/PA Wire

Tue Mar 22 2022 - 08:31

Home improvement retailer Kingfisher reported a 20.9 per cent rise in annual profit reflecting a boost to sales from the pandemic and said it had made an encouraging start to its new year despite heightened macroeconomic and geopolitical uncertainty.

The group, which owns B&Q and Screwfix, said on Tuesday it made an adjusted profit before tax of £949 million (€1.14 billion) in the year to January 31st – in line with analysts’ forecasts and up from £786 million in 2020-21.

Total sales rose 6.8 per cent to £13.2 billion with more people rediscovering DIY (do-it-yourself) during the crisis as they spent more time at home, had fewer leisure options and travelled less.

"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 CEO Thierry Garnier.

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Like-for-like sales in the first quarter of the 2022-23 year so far to March 19th were down 8.1 per cent year-on-year, but up 16 per cent on a two year basis, with resilient demand across all markets supported by good stock availability.

The group is targeting net space growth of 1.5 per cent in 2022-23 and said it was comfortable with the current analysts’ consensus for adjusted pretax profit of £769 million. Kingfisher proposed a total dividend per share of 12.4 pence, up 50.3 per cent. – Reuters

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