21st Mar 2018 07:47
LONDON (Alliance News) - DIY retailer Kingfisher PLC on Wednesday said profit fell in its recently ended financial year though revenue rose, as it warned its outlook by country for the year ahead is a "mixed picture"
Sales rose 3.8% to GBP11.66 billion for the year ended January 31 from GBP11.23 billion the year before, as pretax profit fell to GBP682 million after exceptional items from GBP759 million the year prior.
Adjusted pretax profit still fell to GBP682 million from GBP742 million, though underlying pretax profit rose 1.3% to GBP797 million. Retail profit rose 0.3% to GBP849 million in the period.
Like-for-like sales at constant currency for the year fell 0.7%.
The company raised its full-year dividend to 10.8 pence from 10.4p.
The outlook by country for the current financial year is a "mixed picture", Kingfisher said. In the UK it is "more uncertain", and in the fourth quarter both B&Q and Screwfix experienced softer sales.
B&Q total sales declined by 5.3% to GBP3.49 billion in the year, reflecting annualisation of the completed store closure programme. Like-for-like sales declined by 2.8%.
Screwfix total sales increased by 17%, or 10% on a like-for-like basis, to GBP1.52 billion, driven by strong growth from the specialist trade desks exclusive to plumbers and electricians, digital growth, and the continued roll out of new outlets.
In France, Kingfisher said it is "encouraged" by the market backdrop although it is volatile, whilst in Poland the market remains supportive.
Kingfisher said its current financial year is "another big year of implementation", and it is aware of the challenges ahead. The company said it remains confident in its ability to deliver its transaction plan benefits for the year ending in 2021.
"Our performance this year has been mixed, however, with solid growth at Screwfix and Poland, offset by continued weaker sales in France and some business disruption, principally reflecting product availability and clearance," said Chief Executive Veronique Laury.
"We are acting on the causes of this disruption, however next year will be another big year in our transformation plan," Laury added.
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