22nd Sep 2026 09:28
(Alliance News) - Kingfisher PLC on Tuesday raised annual guidance, despite a "mixed" consumer environment, after reporting better-than-expected first half results.
In response, shares in the London-based do-it-yourself retailer jumped 8.6% to 332.10 pence each in London on Tuesday morning, the best performing stock on the FTSE 100 which was down 0.1%.
Kingfisher, which owns brands such as B&Q, Screwfix and Castorama, said pretax profit surged 18% to GBP400 million in the six months ended July 31 from GBP338 million the year prior. The prior year figure included a GBP31 million loss related to the sale of its business in Romania.
Adjusted pretax profit grew 9.9% to GBP404 million from GBP368 million, beating GBP372 million consensus cited by RBC Capital Markets. The current year includes a GBP14 million one-off business rates refund.
Sales amounted to GBP6.86 billion, a rise of 0.8% from GBP6.81 billion a year prior. Like-for-like sales edged up 0.1% in the half-year, with 1.0% growth in the second quarter.
Gross margin expanded 70 basis points to 38.4% from 37.7%, with retail profit margin of 7.1%, up from 6.6% on-year.
Like-for-like sales grew 5.6% at Screwfix in the first half of 2026, but fell 2.9% at B&Q, leaving UK & Ireland LFL growth at 0.4%.
LFL sales in France fell 2.3%, including declines of 0.5% at Castorama and 4.2% at Brico Depot. In Poland, LFL sales climbed 2.2%, while growth was 7.7% in Iberia.
Kingfisher said strong growth at Screwfix and in Poland and Iberia was driven by trade, and e-commerce initiatives, product innovation and seasonal categories. This was partly offset by lower sales at B&Q and Brico Depot France.
Market share gains were seen at Screwfix, TradePoint, Castorama Poland and Spain. Castorama France returned to growth in the second quarter and performed broadly in line with its market in the half, the firm said, while B&Q traded broadly in line with the market. Brico Depot France was impacted by heatwaves due to category mix, the FTSE 100 listing added.
Free cash flow in the half-year declined to GBP339 million from GBP478 million.
Kingfisher maintained its interim dividend at 3.8p per share and said it is starting a third tranche of its GBP300 million share buyback. The GBP50 million part of the overall programme will start immediately and end no later than December 15.
Chief Executive Thierry Garnier said: "While the consumer environment remains mixed, our consistent delivery, strategic progress and opportunities ahead give us the confidence to upgrade our guidance."
Kingfisher now sees adjusted pretax profit for the full year between GBP595 million and GBP635 million, its guidance range lifted from GBP565 million to GBP625 million.
Kingfisher sees free cash flow between GBP480 million and GBP520 million for the full year, lifting its outlook from GBP450 million and GBP510 million.
In the financial year ended January 31, Kingfisher reported adjusted pretax profit of GBP560 million and free cash flow of GBP512 million.
By Jeremy Cutler, Alliance News reporter
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