Kingfisher plc LSE: KGF markety budowlane: B&Q, Castorama, Brico Dépôt, Screwfix

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Latest Release
Mar 21, 2023

EPS / Forecast
29.7! / 11.14

Revenue / Forecast
13.06B! / 6,163M

Kingfisher (LON:KGF) stock rose 0.6% after the British home improvement retailer reported better-than-expected annual income and said its operations were "well positioned" in the current fiscal year.

B&Q and Screwfix owner Kingfisher also gained as it posted a drop in full-year profit - in line with its guidance - as sales dipped, with trade normalising after the pandemic boost. In the year to the end of January 2023, adjusted pre-tax profit fell 20.2% to £758m, with sales down 0.9% to £13.1bn. The company had guided to pre-tax profit of £730m to £760m.

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Kingfisher reports full-year pre-tax income beat despite drop in sales

Investing.com -- Shares in Kingfisher PLC (LON:KGF) rose on Tuesday after the British home improvement retailer reported better-than-expected annual income and said its operations were "well positioned" in the current fiscal year.

The company behind DIY brands like B&Q and Screwfix posted adjusted pre-tax profit of £758 million for the 12 months ended on January 31, above Bloomberg consensus estimates of £741.6M. The bottom-line figure dipped by a little over 20% versus the prior year, but the decline was mitigated by a second-half recovery in e-commerce sales.

Chief executive officer Thierry Garnier noted in a statement that like-for-like sales were also 15.6% ahead of pre-pandemic levels, although he flagged that input cost pressures and households crimped by soaring inflation had made the 2022/2023 financial period "challenging."

“We remain confident in both the growth of our industry, and in our strategic priorities supporting growth ahead of our markets," Garnier added.

Looking ahead, Kingfisher is targeting further market share growth this year, along with new stores in the U.K., France, Poland, and the Middle East. But, it said it remained committed to managing operating expenses to "partially offset" higher staff, technology, and energy costs.

The group intends to announce a new share buyback program as well following the completion of its existing stock repurchases this year.

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DIY seller Kingfisher promises higher returns after year of no growth

- In-store sales growth offsets online decline

- Firm talks up new store opening plan

- Analysts unlikely to push through upgrades

Pan-European home improvement retailer Kingfisher (KGF) pleased investors initially with both its latest results, which were slightly ahead of market expectations, and a new strategic plan to improve shareholder returns.

However, the shares, which initially gained as much as 3% to 283p, eased back to trade down 1.2% at 270p as analysts reserved judgement.

SOLID IF UNSPECTACULAR YEAR

Sales for the 12 months to the end of January were 0.9% lower at £13.06 billion, in line with the firm’s guidance and marginally better than analysts had forecast given the strong prior-year comparison.

On a like-for-like basis, sales were down 2.1% from the previous year but compared with pre-pandemic levels they were 15.6% higher or around 3% ahead of the market suggesting the firm has made solid progress.

Ecommerce revenues were predictably lower than in 2021-22, when lockdowns drove sales online, but they now represent more than 16% of total group revenues compared with less than half that level pre-pandemic, suggesting a permanent shift in the way customers shop.

In-store sales were driven by a record 82 new Screwfix store openings in the UK, with a further 60 new stores planned for this year, while five new Screwfix stores were opened in France with another 25 planned for this year, and seven new Castorama stores were opened in Poland with up to 80 stores planned in total over the next five years.

CONFIDENT OUTLOOK

The firm reported the new year had started well with like-for-like sales in February up 0.5% on last year as the firm maintained pricing in its key markets.

Own-brands now account for around 45% of sales, which should help the gross margin, while Kingfisher is confident in its ability to manage inflation, input costs and inventories.

As a result, the board said it was ‘comfortable’ with the current consensus forecasts of £633 million in pre-tax profit and over £500 million of free cash flow for the year to next January.

Chief executive Thierry Garnier also unveiled his new medium-term strategy, ‘focused on growth, cash generation and higher returns to shareholders’.

AJ Bell investment director Russ Mould commented: ‘Kingfisher’s business has two key drivers. First is the repair, maintenance and improvement market where existing homeowners want to do up their property. Second is the housing market where lots of people moving home should trigger sales of DIY goods, and here there are concerns that a more muted property market in the UK could dampen demand. That suggests Kingfisher might be only firing on one cylinder for a while.

‘The growth strategy will involve having a much bigger chunk of sales derived from e-commerce channels, more use of data and artificial intelligence to support pricing decisions, being a bigger player in the trade market, and rolling out smaller stores.

‘It’s good to have ambitions but this sounds like a lot of work to get done, and Kingfisher doesn’t have a good reputation for doing things quickly.’

https://www.sharesmagazine.co.uk/news/s ... -no-growth

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DIY retailer Kingfisher plummeted 12,2% after lowering earnings guidance on the back of weaker sales in France and Poland.
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Kingfishers sink on profit warning

B&Q and Screwfix owner Kingfisher lost more than a tenth of its market value on Tuesday after the DIY retail conglomerate warned shareholders that it would have to scale back profit guidance this year.

The company, which owns a host of DIY brands across Europe, said full-year adjusted profit before tax is now likely to be in the region of £590m, down from a previous target of £634m and significantly lower than the £758m reported a year earlier. The group cited worsening conditions in Poland as well as continued struggles in France.

Not even the announcement of a £300m new share buyback programme could please the market, with shares down 12% at 208p by the close - its lowest level in nearly a year.

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Morgan Stanley lowered Kingfisher (LON:KGF)'s price target to 250 pence from 275 pence while maintaining an 'Outperform' rating.