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DIY retailer Kingfisher PLC said it delivered a first-half performance in line with expectations, while facing strong comparatives from the prior year as well as a more challenging environment.
The London-based company said sales in the six months that ended July 31 totalled £6.81 billion, down 4.1% from £7.10 billion a year prior, which it noted was comparably strong.
A year ago, demand for home improvement products was higher, Kingfisher said. However, it said it kept a high number of customers it acquired during the pandemic.
Pretax profit fell 30% year-on-year to £474 million from £677 million. Retail profit in the UK & Ireland fell by 41% to £339 million from £579 million. Kingfisher said it had seen an ‘encouraging’ start to trading in the second half of the year.
‘High demand, port congestion and Covid lockdowns have placed considerable strain on the industrys
global supply and logistics network over the last two years,’ it added.
The company explained that freight headwinds which were a constant challenge throughout 2021 have been easing since January 2022.
Kingfisher proposed an unchanged interim dividend of 3.80 pence per share.
‘Looking to the months ahead, although trading in the year to date has been in line with our expectations, we remain vigilant against the more uncertain economic outlook for the second half. We are therefore focussed on delivering value to our customers at a time when they need it most. You can expect continued strong execution, with a focus on growing sales and market share, effective management of our gross margin, and alignment of our costs and inventories to market conditions,’ stated Chief Executive Officer Thierry Garnier.
Kingfisher shares fell 5.3% to 234.20 pence each in London on Tuesday morning.
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