19th Feb 2009 07:00
EMBARGOED UNTIL 0700 HOURS
Thursday 19 February 2009
Kingfisher plc today reports Q4 total sales up 11% to £2.3 billion.
Expects adjusted pre-tax profit for the full year to be in line
with analyst consensus estimates.
|
Retail Sales - 13 weeks to 31 January 2009 |
% Total |
% Total |
% LFL |
|
|
2008/09 £m |
Change (Reported) |
Change (Constant currency) |
Change (Constant currency) |
|
|
France |
937 |
24.5% |
2.1% |
(2.9)% |
|
UK |
947 |
(4.2)% |
(4.2)% |
(6.8)% |
|
Other International |
461 |
25.9% |
4.1% |
(7.7)% |
|
Total Group |
2,345 |
11.2% |
(0.3)% |
(5.5)% |
Note: Figures are for the continuing operations, both years exclude the now disposed Castorama Italy. Joint Venture (JV) and Associate sales are not consolidated.
Q4 Highlights (constant currencies)
Group total sales broadly flat, down 5.5% on a like for like (LFL) basis in a weaker international trading environment
French total sales up 2.1%, down 2.9% LFL, gross margins flat
UK total sales down 4.2%, down 6.8% LFL, costs of higher discount activity fully offset by strong cost control
In Other International
Eastern European businesses continued to deliver strong sales growth
Sales in China continued to decline in a weak housing market. China turnaround plans have been finalised, with a detailed update to be announced with the preliminary results on 26 March 2009
As previously announced, the sale of Castorama Italy was completed. Cash proceeds of €615 million were received shortly before the end of the quarter
Full Year
Kingfisher expects to announce on 26 March 2009 full year adjusted profit before tax in line with the current consensus of analyst expectations*
The Group achieved its flat net debt target for the year, before the sale of Castorama Italy and excluding the adverse impact of exchange rate movements. Year end net debt is expected to be below £1.1 billion (2007/08: £1.6 billion)
*Analyst consensus of £364 million, see www.kingfisher.com/investors/analystestimates for more detail.
Ian Cheshire, Group Chief Executive, said:
"We continued to take share in our major markets during Q4 and have managed our cashflow in what was a particularly difficult time for consumers. Adopting a vigorous and prudent approach to costs and cash at the start of the year enabled us to meet key financial targets, including our target for net debt, and make real progress with our Delivering Value programme in 2008.
"With a strong and experienced management team in place, we now enter what is anticipated to be a very challenging year in good shape with a robust balance sheet, leading market positions and an international portfolio of retail brands with strong value positions."
FRANCE (1)
Total sales grew 2.1% to £937 million (-2.9% LFL). Castorama total sales grew by 1.6% to £490 million (-1.0% LFL, +0.3% on a comparable store basis). Brico Dépôt total sales grew by 2.6% to £447 million (-4.9% LFL). Gross margins in France are expected to be flat reflecting higher own-brand sales penetration and sales mix benefits at Castorama, and improved stock management at Brico Dépôt.
UK (2)
B&Q total sales declined by 5.5% to £825 million (-5.9% LFL). High-ticket sales, including kitchen and bathroom products, improved relative to Q3. Increased promotional activity impacted gross margins by £17 million but this was fully offset by cost savings. Screwfix delivered total sales growth of 4.2% to £115 million driven by the continued roll-out of trade counters.
OTHER INTERNATIONAL (3)
In Eastern Europe sales in Poland were up 16.2% to £228 million (+5.5% LFL despite a tough comparative of +12.1%). Sales in Russia grew 68.4% (+16.7% LFL). In China sales were down 26.6% (-31.2% LFL) with the on-going property slowdown continuing to impact B&Q's design and fit-out business. Details of a comprehensive repositioning plan will be announced with the preliminary results on 26 March 2009.
For the year ended 31 January 2009
|
Retail Sales |
% Total |
% Total |
% LFL |
|
|
2008/09 £m |
Change (Reported) |
Change (Constant currency) |
Change (Constant currency) |
|
|
France (1) |
3,888 |
20.6% |
3.1% |
(1.3)% |
|
UK (2) |
4,279 |
(2.6)% |
(2.6)% |
(6.5)% |
|
Other International (3) |
1,859 |
29.9% |
7.0% |
(3.7)% |
|
Total Group |
10,026 |
10.8% |
1.2% |
(4.1)% |
2008/09 £1=1.2367 euro (2007/08 £1 =1.4472 euro)
(1) Castorama and Brico Dépôt.
(2) B&Q, Screwfix and Trade Depot.
(3) Poland, China, Spain, Ireland and Russia. Following the disposal of Castorama Italy its results have been excluded from both years. Joint venture (JV) and Associate sales are not consolidated.
Kingfisher plc will announce its full year preliminary results for the 12 months to 31 January 2009 on 26 March 2009.
Enquiries:
|
Ian Harding, Group Communications Director |
020 7644 1029 |
|
Nigel Cope, Head of Communications |
020 7644 1030 |
|
Sarah Gerrand, Head of Investor Relations |
020 7644 1032 |
Further copies of this announcement can be downloaded from www.kingfisher.com or by application to: The Company Secretary, Kingfisher plc, 3 Sheldon Square, London, W2 6PX.
Company Profile
Kingfisher plc is Europe's leading home improvement retail group and the third largest in the world, with around 830 stores in eight countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also has a 21% interest in, and strategic alliance with Hornbach, Germany's leading large format DIY retailer, with over 120 stores in nine European countries.
Delivering Value - seven key steps to delivering a step-change in shareholder value:
Driving up B&Q's profit
Exploiting our UK Trade opportunity
Expanding our total French business
Rolling out in Eastern Europe
Turning around B&Q China
Growing Group sourcing
Reducing working capital
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