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Kingfisher PLC on Monday backed its guidance for financial 2023 on first-quarter results that met expectations and announced a return of surplus capital.
The London-based DIY retailer said group sales in the three months to April 30 fell 5.8% to £3.25 billion compared to the same period a year before. At constant currency, sales were down 4.2%. On a like-for-like basis, they were 5.4% lower.
Kingfisher said its performance throughout the quarter was ‘in line with our expectations’.
Further, the FTSE 100 listed firm noted that sales were 16% higher on a like-for-like basis compared to three years earlier, before the onset of the pandemic, due to ‘strong market share gains.’
In the UK & Ireland unit alone, which includes brands like B&Q and Screwfix, sales were down 14% yearly to £1.57 billion.
Compared to three years before, quarterly sales are 17% higher on a like-for-like basis, due to market share gains and good retention of revenue from new and existing customers, Kingfisher said.
Chief Executive Thierry Garnier said: ‘While facing very strong comparatives in the prior year, our continued strategic progress has enabled us to retain a significant proportion of the increased sales during the pandemic.’
Kingfisher reported that group sales for the two weekends ended May 14 were down 2.5% on a like-for-like basis but stressed that demand remains ‘resilient’.
The company said it continues to manage inflationary and supply chain pressures ‘effectively’.
Looking ahead, it stated that it has good momentum going into the second quarter.
Kingfisher backed its full-year guidance and continues to expect an adjusted pretax profit of £770 million for the current financial year, which runs to the end of January 2023. This would be a 4.5% improvement from £737 million in financial 2022.
‘Looking forward, we are reiterating our profit guidance for [financial 2023]. We are focused on delivering on our strategic objectives and growth initiatives, including the growth of our scalable e-commerce marketplace, the expansion of Screwfix in the UK and France, new store openings in Poland, further increasing our trade customer base.’
Kingfisher also has more ‘surplus capital’, which will be returned to shareholders, in line with its policy.
‘Further to the ordinary dividend and the recently completed £300 million share buyback, the board is pleased to announce the return of a further £300 million of surplus capital via a share buyback programme. The first tranche of this programme will commence soon,’ Kingfisher said.
Kingfisher shares were trading 2.7% higher at 253.40 pence each in London on Monday morning.
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