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Kingfisher plc, (LSE:KGF) the parent company of B&Q and Screwfix, reported its half-year results today, showing performance aligned with market expectations. The company's adjusted pre-tax profit (PBT) for the period decreased marginally by 0.5% to £334 million, while top-line sales fell by 1.4%. This represents a notable improvement compared to a 29% decline in adjusted PBT observed in the first half of 2023, indicating a recovery in the DIY market.
Kingfisher has revised its full-year adjusted PBT forecast upwards to a range of £510 million to £550 million, an increase from the previous forecast range of £490 million to £550 million. The company has also raised its free cash flow projections, reflecting enhanced financial performance.
However, the performance in France was a point of concern, with sales in the region declining by 7.2%. Despite this, Kingfisher’s overall trading performance in the first half of the year met expectations. The company attributed this stability to ongoing customer activities related to home repairs, maintenance, and renovation, which supported resilient volume trends in core product categories.
Thierry Garnier, Chief Executive Officer, commented on the results, stating that the company’s performance was in line with forecasts. Garnier noted that while demand for high-value items has remained subdued, consistent with broader market trends, sales in seasonal categories have shown improvement since early July. Kingfisher has continued to emphasize effective management of costs and inventory in response to these market conditions.
The report highlights Kingfisher’s strategic focus on cost management and operational efficiency while navigating a challenging market environment. The adjustments in financial forecasts and cash flow projections reflect a positive shift in the company's outlook despite regional sales challenges.
