Kingfisher boosted by International growth as B&Q sales decline

DIY retail giant Kingfisher saw its third-quarter profits increase 8.2 per cent to £240million after a strong performance at its international divisions helped to offset a drop in UK sales.

The group said 80 per cent of its profits were generated overseas as its flagship B&Q chain, which operates from 330 stores in the UK and Ireland, reported a like-for-like sales fall of 5.1 per cent in the three months to October 30.

But a market-beating performance from its Castorama and Brico Depot operations in France lifted the gloom, with profits increasing 3.1 per cent to £130million.

Overall, international profits, including operations in Russia, Spain, China, Turkey and Poland, came in higher 18 per cent to £64million, despite a 1.1 per cent sales drop on a like-for-like basis.

The company said that profits across its UK and Ireland arm, which also includes building supplier Screwfix, came in flat at £46million

Chief executive Ian Cheshire described the group’s performance as ‘solid’, adding that a series of self-help initiatives helped it to offset the pressure on consumer spending. ‘We are well prepared to trade effectively in these challenging times and we continue to lay solid foundations for sales and profit growth in the future,’ Cheshire added.

Source : Mailonline