B&Q and Castorama owner Kingfisher (LON:KGF) unveiled a £600mln cash return to shareholders but said its overhaul would hit profits.
Kingfisher said it planned to return about £600mln of capital to shareholders in the next three years via share buybacks, in addition to the annual ordinary dividend.
But it forecast that pre-exceptional reported profit would take a hit, net of operational efficiency benefits, by about £50mln in the first year of its five-year restructuring drive and up to £100mln in the second year.
Total expected cash costs would be £800mln, comprising capital spending on the restructuring plus profit and loss costs of the overhaul and exceptional costs.
The restructuring is expected to increase annual profits by £500mln by the end of the five years.
Chief executive Véronique Laury said: "With a clear road-map now in place alongside clear long-term targets, the size of the five-year opportunity is significant. We do acknowledge the challenges ahead, however."
Kingfisher is launching the restructuring to streamline the company into a single, unified unit across Europe, rather than having individual stand-alone businesses.
It said there would be limited expansion during the five-year-period, the focus of which, in the medium-term, would be Screwfix Europe.