Kingfisher Q4 results

Kingfisher plc, Europe's leading home improvement retailer with over 900 stores in 8 countries in Europe and Asia, has this morning released a Q4 trading update.

Kingfisher reports total Q4 sales up 2.2%, up 4.0% in constant currencies (LFL up 0.9%), expects full year adjusted profit to be up around 20%, in line with current analyst estimates* and announces updated organisation structure.

UK (B&Q in the UK & Ireland and Screwfix):
- Total sales: £968m, up 1.5% (-1.9% LFL).
- B&Q total sales: up 0.2% to £837 million (-2.5% LFL), continuing to benefit from the closure of Focus DIY in Q2 last year.
- Screwfix total sales: up 10.3% to £131 million (+2.2% LFL).

Commenting on trading, Ian Cheshire, Group Chief Executive, said:

“With sales growth in each of our three main divisions and further solid profit growth in our final quarter we have ended another challenging year in robust shape. Our established programme of self-help initiatives has continued to serve us well and so we expect to announce full year adjusted profit in line with the current consensus of analyst expectations.

“Looking ahead the global economic outlook is uncertain and so we will remain focused on self-help measures to trade the business effectively, whatever the market conditions. Our medium term ambition remains to reposition the business as the industry leader at the forefront of innovation, helping our customers have ‘better homes, better lives’.”

As part of an organisational evolution, Kingfisher today announces the following changes in the roles and responsibilities of the Group Executive team supporting the Group Chief Executive, Ian Cheshire:

Philippe Tible, currently CEO, Kingfisher France, will retain responsibility for our French and Spanish businesses and in addition will assume responsibility for the Castorama businesses in Poland and Russia. He becomes Kingfisher Divisional CEO, Castorama & Brico Dépôt.

Euan Sutherland, currently CEO, Kingfisher UK & Ireland, will become Kingfisher Chief Operating Officer with Group-wide responsibility for the key common range initiative, (which incorporates direct sourcing and own brands), and for developing our ‘Eco’ business. Euan will also assume responsibility for IT, Property and Human Resources and retain responsibility for the Screwfix business where several new Group-wide initiatives including multi-channel are currently under development.

Kevin O’Byrne, currently Group Finance Director, will become Kingfisher Divisional CEO, B&Q. Kevin will assume responsibility for the B&Q businesses in the UK and China as well as the B&Q joint venture in Turkey and our strategic alliance with Hornbach in Germany. Kevin will remain an Executive Director of Kingfisher. An internal and external search is currently underway to replace him as Group Finance Director.

Under this new organisation structure, the ‘CEO, Kingfisher International’ role will no longer exist. It is therefore with regret that we announce Peter Hogsted will be leaving the business later in the year.

Commenting on the organisation changes, Ian Cheshire added:

“Crucial to our success over the last four years has been the strength in depth of our whole management team and our new ‘One Team’ approach that better harnesses that talent. To support the next phase of our development, we intend to build on this momentum and today’s changes will enable us to do that. However, I will be very sorry to see Peter go as he is a great retailer and has played a big part in our success to date. I’m very excited by Kingfisher’s future potential and I’m looking forward to working with the management team and all our colleagues to deliver it.”

The full release can be found in the ‘Industry Articles’ section on our website:
http://www.insightdiy.co.uk/articles.asp

Source : Kingfisher Plc
www.kingfisher.com/index.asp?pageid=3