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Kingfisher cut costs to boost profits as sales dip in Q1
Kingfisher Plc, the European home improvement retailer, today posted a rise in Q1 profit, but said there is much for the company to do this fiscal year.
Retail profit, the key figure tracked by the U.K. market, rose 12% at constant currencies to £146 million for the 13 weeks to May 1 from £128 million in the same period last year, driven by margin improvements and cost cutting. At the reported level, retail profit rose 14.5%.
Kingfisher said same-store sales at constant currencies fell 1.8%. In the U.K. and Ireland, same-store sales fell 2.8%. Group sales at constant currencies fell 0.2% to £2.64 billion. At the reported level, sales were flat versus last year.
The group said sales were impacted by poor weather conditions.
"Sales were disrupted at the start of the quarter by heavy snow, and the prolonged cold weather also delayed the start to the outdoor spring season, contrasting with favourable conditions the previous year," Chief Executive Ian Cheshire said.
On outlook, Cheshire said: "Whilst this is a good start to the year, our first quarter is typically one of the least significant contributors to annual profit and so there is much still to do this year. The headwinds we anticipated at the start of the year look set to continue, but we are in good shape and well prepared."
Kingfisher is Europe's biggest home improvement retailer by sales and the third-largest in the world with more than 820 stores in eight countries in Europe and Asia. Its main brands are B&Q, Brico Depot and Screwfix.
The company also has a 50% joint venture business in Turkey with the Koc Group and a 21% interest in, and strategic alliance with, German home improvement retailer Hornbach.
Kingfisher shares closed at 224 pence on Wednesday, valuing the company at £5.29 billion.
Retail profit, the key figure tracked by the U.K. market, rose 12% at constant currencies to £146 million for the 13 weeks to May 1 from £128 million in the same period last year, driven by margin improvements and cost cutting. At the reported level, retail profit rose 14.5%.
Kingfisher said same-store sales at constant currencies fell 1.8%. In the U.K. and Ireland, same-store sales fell 2.8%. Group sales at constant currencies fell 0.2% to £2.64 billion. At the reported level, sales were flat versus last year.
The group said sales were impacted by poor weather conditions.
"Sales were disrupted at the start of the quarter by heavy snow, and the prolonged cold weather also delayed the start to the outdoor spring season, contrasting with favourable conditions the previous year," Chief Executive Ian Cheshire said.
On outlook, Cheshire said: "Whilst this is a good start to the year, our first quarter is typically one of the least significant contributors to annual profit and so there is much still to do this year. The headwinds we anticipated at the start of the year look set to continue, but we are in good shape and well prepared."
Kingfisher is Europe's biggest home improvement retailer by sales and the third-largest in the world with more than 820 stores in eight countries in Europe and Asia. Its main brands are B&Q, Brico Depot and Screwfix.
The company also has a 50% joint venture business in Turkey with the Koc Group and a 21% interest in, and strategic alliance with, German home improvement retailer Hornbach.
Kingfisher shares closed at 224 pence on Wednesday, valuing the company at £5.29 billion.
Thu, 3rd Jun 2010