B&Q and Screwfix-owner Kingfisher PLC (LSE:KGF) reported a fall in full-year profits and said it expects that figure to slide again despite stating it is “well-positioned” to navigate the current financial year.
Adjusted pre-tax profits fell 20.2% to £758mln in the year to 31 January 2023 and sales also fell by 0.7% to £13.05bn on a constant currency basis, reflecting strong comparatives in the prior year.
Net debt grew to £2.2bn from £1.5bn, reflecting £2.4bn of lease liabilities under IFRS 16 and a net decrease in cash, according to a statement.
The FTSE 100 company said it is “comfortable with current consensus” of £633mln for the 2023/24 fiscal year.
“We have maintained a sharp focus on pricing to deliver value to our customers during this challenging period for household finances, while at the same time managing our cost inflation pressures effectively,” said chief executive Thierry Garnier.
Looking ahead, Kingfisher said new year underlying sales trends have been “resilient”, with like-for-like sales in February up 0.5% on last year.
The group pointed out that it is effectively managing inflation, costs and inventory levels while targeting further market share growth.
Kingfisher did say, however, it expects some impact in March from adverse weather conditions and strong comparatives in Poland.
"We remain confident in both the growth of our industry, and in our strategic priorities supporting growth ahead of our markets. And we are announcing today our new medium-term financial priorities, focused on growth, cash generation and higher returns to shareholders,” Garnier added.
Kingfisher's total dividend, at 12.4p, remains unchanged.