Kingfisher Q3 trading update

This morning, Kingfisher has announced Q3 trading figures for the 13 weeks ending 27th October 2012.

Highlights from the publication follow but the full release can be found and downloaded from our Industry Articles pages (www.insightdiy.co.uk/articles).

Kingfisher reports Q3 retail profit of £257 million, up 0.1% in constant currencies, and sales of £2.7 billion, down 2.8% LFL

Highlights in constant currencies:

■Group total sales up 0.8% driven by growth in the Other International division where Kingfisher recently opened its 1,000th store
■Group retail profit slightly up, supported by on-going self-help initiatives. (On a reported basis retail profit was adversely impacted by £16 million due to translating euro and zloty overseas profits into sterling)
■Net cash was £222 million (28 July 2012: net cash of £29 million) reflecting peak trading patterns, tight cash control and some capital expenditure projects now scheduled to fall in the next financial year

Kingfisher UK & Ireland:

Total sales declined by 0.7% to £1,055 million (-3.8% LFL) in a continuing challenging consumer environment. Retail profit however grew by 5.5% to £59 million driven by a higher gross margin and continued cost initiatives.

B&Q UK & Ireland's total sales declined by 2.3% to £906 million (-4.0% LFL) reflecting the generally weak consumer backdrop in the UK and a particularly challenging environment in Ireland. Retail profit grew by 1.7% to £45 million benefiting from higher gross margins (up 50 basis points) and operating cost efficiencies including lower bonus provisions.

Screwfix grew total sales by 10.9% to £149 million, despite the continued challenging trading conditions in the smaller tradesman market(1), benefiting from the continued roll out of new outlets, the success of ‘click, pay & collect’ and a redesigned catalogue. Twelve outlets were opened during Q3, taking the total to 252. Retail profit was up 19.8% to £14 million, boosted by the strong sales growth, higher gross margins and continued tight cost control.

(1) Based on the Builders' Merchants Federation lightside trade data July-September 2012

Ian Cheshire, Group Chief Executive, said:

“Following a particularly tough first half, I am pleased that our teams’ hard work has delivered a solid profit performance in our third quarter, one of our most significant trading periods in the year. Our markets remain challenging, with consumer confidence still weak and so we maintain our strong focus on margin, costs and cash.

“Kingfisher is in good shape and I remain enthusiastic about our longer-term prospects under our new ‘Creating the Leader’ programme which will establish us as a world class retailer at helping customers have better and more sustainable homes.”

Source : Kingfisher
www.kingfisher.co.uk/index.asp?pageid=255