22nd Feb 2007 07:01
Kingfisher PLC22 February 2007 EMBARGOED UNTIL 0700 HOURS Thursday 22 February 2007 Kingfisher plc Trading update for the fourth quarter ended 3 February 2007 Group Financial Summary % Total % Total % LFLRetail Sales (1) 2006/07 2005/06 Change Change on a 13 week Change £m £m (Reported) basis (Constant Currency) UK 1,042.6 922.6 13.0% 4.4% 1.4%France 659.9 607.6 8.6% 10.9% 3.8%Rest of Europe (2) 248.4 213.4 16.4% 17.7% 2.6%Asia (3) 132.1 119.0 11.0% 16.2% 5.8%Total 2,083.0 1,862.6 11.8% 8.8% 2.5% (1) For the UK businesses, the fourth quarter reported total sales figures are for the 14 weeks ended 3 February 2007. Outside the UK, figures are on a calendar month basis. (2) Rest of Europe includes sales for Castorama Poland, Castorama Italy, Brico Depot Spain, B&Q Ireland and Castorama Russia. Sales from Koctas JV in Turkey and Hornbach in Germany are not consolidated. (3) Asia includes B&Q China and B&Q Home South Korea. B&Q Taiwan JV sales are not consolidated. Q4 Highlights (all figures in constant currency) • Group total sales up 8.8% (13 week basis), like for like sales (LFL) ahead 2.5%. • B&Q UK total sales up 2.7% (13 week basis), up 1.3% LFL with gross margin rate recovering over three percentage points. Eleven new format stores trading well, next phase of eight revamps underway. • Strong finish for Brico Depot (+8.5% LFL). Mild weather impacted sales at Castorama (flat LFL). Overall gross margins in France one percentage point lower across the second half reflecting strong price pressure which is expected to continue in 2007/08. • Good performance in Rest of Europe and Asia against strong comparatives. Full Year • Kingfisher expects to announce on 29 March 2007 full year adjusted profit before tax slightly ahead of current consensus of analyst expectations. • Retail profit for B&Q UK is expected to benefit from improved trading and £6 million of one-off items in the fourth quarter. Retail profit in France is expected to be adversely impacted by seasonal weakness at Castorama and continuing price pressure affecting both businesses. • Net debt is expected to be around £1.3 billion, below current market estimates. Gerry Murphy, Group Chief Executive, said: "Kingfisher delivered growth in the fourth quarter despite continuing toughconditions in our biggest markets. We have accelerated development activity atB&Q UK and Castorama France and the strong momentum of our internationalexpansion in the Rest of Europe and Asia continues." UK Q4 Retail Sales £m 2006/07 2005/06 % Total % Total % LFL Change Change Change (14 weeks) (13 weeks) UK 1,042.6 922.6 13.0% 4.4% 1.4% UK includes B&Q in the UK, Screwfix Direct and Trade Depot. B&Q total reported sales were £942.2 million, up 2.7% on a 13 week basis (+1.3%LFL), reflecting less promotional activity in the quarter than the previousyear. Building and energy efficiency products, kitchens and bathrooms benefitedfrom new ranges and targeted promotions. The gross margin rate improved by overthree percentage points, reflecting less stock clearance and general discountactivity compared to last year. Results from the three large new format stores opened in summer 2006 continue tobe encouraging. The second phase of eight revamps was completed in the quartertaking the total number of new format stores trading to 11. The next phase ofeight revamps is now underway and due for completion before Easter 2007. Screwfix Direct total reported sales were £96.2 million, up 24.4% on a 13 weekbasis. LFL sales growth was slower (+1.8%) reflecting strong growth last year(2005/06: +37.1%) and slower trade sales in January. Screwfix's Trade Counterroll-out continues with eight openings during the quarter, taking the total to38. FRANCE Q4 Retail sales £m 2006/07 2005/06 % Change % Change % LFL (Reported) (Constant) Change France 659.9 607.6 8.6% 10.9% 3.8% 2006/07 £1 =1.4720 euro 2005/06 £1 = 1.4649 euro All percentage increases below are in constant currencies. Total sales grew 10.9% to £659.9 million with unusually mild weather benefitingsome outdoor categories (e.g. building) but significantly reducing demand forheating products, particularly at Castorama, France's leading retailer ofheating supplies. Continuing price pressure in the market compressedKingfisher's overall French gross margin rate by one percentage point across thesecond half of the year compared with the same period last year. This pricepressure is expected to continue in 2007/08. Castorama sales grew by 2.7% to £350.3 million (flat LFL). Stores in the modernformat (representing 36% of store space) continued to perform well although theperformance of older format stores was weaker. Sales benefited from newdecorative ranges and Castorama's range development progressed in the fourthquarter. In 2007/08 its store development programme will continue with sixrevamps scheduled for the first quarter. Three Castorama stores closed duringthe fourth quarter ahead of their conversion to Brico Depots in 2007/08. Brico Depot sales grew 21.9% to £309.6 million (+8.5% LFL) with eight morestores compared with the same quarter last year, an additional catalogue andstronger promotional activity. The implementation of the new informationtechnology platform remains on track for completion in the first half of 2007/08, and the second central distribution centre opened on schedule in southernFrance during January. REST OF EUROPE Q4 Retail sales £m 2006/07 2005/06 % Change % Change % LFL (Reported) (Constant) Change Rest of Europe 248.4 213.4 16.4% 17.7% 2.6% Rest of Europe includes sales for Castorama Poland, Castorama Italy, Brico Depotin Spain, B&Q in Ireland and Castorama Russia. Sales from Koctas JV in Turkeyand Hornbach in Germany are not consolidated. All percentage increases below are in constant currencies. Rest of Europe sales increased 17.7% to £248.4 million, with 14 more storestrading compared with the same period last year and LFL growth of 2.6% against avery strong 2005/06 comparative in Poland. Castorama Poland sales grew 9.6% to £129.6 million as milder weather extendedthe outdoor construction season. Underlying trading was strong but LFL saleswere ahead only 0.4% compared to +31.1% in the last quarter of 2005/06, boostedby non-recurring tax incentives to customers in that year. One new store openedduring the quarter. Castorama Italy sales increased 9.0% (+3.8% LFL) to £69.4million in a generally weak Italian retail market. Underlying trading at Brico Depot Spain and Castorama Russia continues to bestrong with two new stores opening in Spain during the quarter. ASIA Q4 Retail sales £m 2006/07 2005/06 % Change % Change % LFL (Reported) (Constant) Change Asia 132.1 119.0 11.0% 16.2% 5.8% Asia includes B&Q China and B&Q Home South Korea. B&Q Taiwan JV sales are notconsolidated. All percentage increases below are in constant currencies. Asia sales increased 16.2% (+5.8% LFL) to £132.1 million. B&Q China sales grew by 14.9% (+5.9% LFL) with 10 more stores trading comparedwith the same quarter last year. Four new stores opened during the quarter,taking the total to 58. For the year ended 3 February 2007 Retail Sales £m (1) 2006/07 2005/06 % Change % Change % LFL Change (Reported) (52 week basis, Constant currency) UK 4,261.5 4,172.0 2.1% 0.2% (1.8)%France 2,955.2 2,724.9 8.5% 9.0% 2.0%Rest of Europe (2) 1,002.5 795.2 26.1% 25.0% 7.4%Asia (3) 456.7 318.0 43.6% 42.2% 10.9%Total 8,675.9 8,010.1 8.3% 7.4% 0.9% (1) For the UK businesses, the fourth quarter reported total sales figures arefor the 53 weeks ended 3 February 2007. Outside the UK, figures are on acalendar month basis. (2) Rest of Europe includes sales for Castorama Poland, Castorama Italy, BricoDepot Spain, B&Q Ireland and Castorama Russia. Sales from Koctas JV in Turkeyand Hornbach in Germany are not consolidated. (3) Asia includes B&Q China and B&Q Home South Korea. B&Q Taiwan JV sales arenot consolidated. 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 Copies of this announcement can be downloaded from www.kingfisher.com or from:The Company Secretary, Kingfisher plc, 3 Sheldon Square, London, W2 6PX. Kingfisher plc is Europe's leading home improvement retail group and the thirdlargest in the world, with over 700 stores in 11 countries in Europe and Asia.Its main retail brands are B&Q, Castorama, Brico Depot and Screwfix Direct.Kingfisher also has a 21% interest in, and strategic alliance with, Hornbach,Germany's leading DIY Warehouse retailer, with over 120 stores in Germany andseven neighbouring countries. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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