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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Retail

Screwfix boosts Kingfisher to first quarter profit rise

B&Q owner Kingfisher (LON:KGF) shares advanced in early deals as the home improvement retailer’s like-for-like sales figures improved.

Like-for-like group sales, in the 13 weeks to 2 May, rose by 0.8% to £2.6bn while on the same basis profits increased 1.4% to £150mln.

Chief executive Véronique Laury described it as “a solid start to the year.”

The bottom line, however, told a different story with lower overall sales and profits in the first quarter.

Total group sales fell 4.6% to £2.6bn while retail profits fell 4.8% to £150mln, due in part to a £10mln hit for foreign exchange movements and £7mln of development costs in new countries.

In the UK and Ireland, which accounts for around half the group’s revenue, B&Q sales were 1.7% lower, though the Screwfix brand continued to grow with a 26% increase in sales.

“In the UK, B&Q continued to grow sales volumes and Screwfix delivered an excellent performance, opening its 400th store in May,” Laury said.

The turnaround continues for the company as it continues to reduce the number of B&Q stores in the UK.

The international businesses had a tough time as French brands Castorama and Brico Dépôt together saw an 11.5% drop in sales and sales were down about 8.5% for the operations in Poland, Russia and Spain.

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