Kingfisher PLC (LSE:KGF) posted results for 2021 well ahead of market forecasts but said profits will fall this year as the lockdown bounce continues to ease and inflation pressures mount.
Revenues and profits both hit records in the 12 months to end-December, with sales up 6.8% to £13.2bn and by almost 10% on a like-for-like basis.
Fourth-quarter revenues though slowed by 1.7% compared to a year earlier to follow a 2.4% dip in the preceding three months.
An improvement in margins helped boost pre-tax profits by 33% to £1bn and by 21% on an underlying basis.
The B&Q and Screwfix owner said eCommerce sales tailed off towards the end of the year, though the bulk of the weakness was in France at Brico and Castorama.
Thierry Garnier, chief executive, noted: "We saw growth in all banners and categories, with resilient demand from both DIY and DIFM/trade segments - each representing 50% of group sales.”
B&Q had an "outstanding year", he added, with sales exceeding £4bn.
Going forward, Kingfisher said sales had continued to slow in this current quarter and are down 8.1% compared to a year ago though still 16% higher than before the pandemic.
Garnier added the group can manage the inflationary pressures building both in the UK and France and said it was committed to "effective management of its gross margin", which usually means passing rising costs on to customers.
Brokers are guiding for adjusted profits of £769mln this year, 2023, a drop of 19% and a number Kingfisher said it was happy with.
The annual dividend rises by 50% to 12.4p.