Kingfisher hails ‘record’ year as profits surge 20.9%

Kingfisher has reported “record” revenue and profits for the year ending 31 January 2022 as adjusted pre-tax profits surged 20.9% year-on-year from £786m to £949m, reflecting higher retail profit and lower net finance costs.

Total sales are up 9.9% to £13.18bn compared to £12.34m last year, and operating profit increased 24.7% year-on-year from £916m to £1.14bn.

Retail profit also increased 14.5% year-on-year from £1bn to £1.14bn, with “strong” performances in the UK and Ireland, France, Iberia and Romania, although Poland was impacted by Covid-related store closures in Q1 last year.

Additionally, e-commerce sales are up 5.3% compared to last year and up 171% on a two-year-basis, with e-commerce sales representing 18% of group sales.

Kingfisher said its success was achieved by “effective” management of product availability, supply chain and inflation pressures. The group is now accelerating investments for growth in digital, trade proposition, Screwfix and its Poland expansion, with new trends in home improvement and continued strategy delivery reportedly supporting long-term growth.

Kingfisher said there is “resilient demand” across all markets, supported by stock availability. Additionally, the current showroom order book for B&Q and Castorama France are 72% higher year-on-year, and up 79% on a two-year basis.

However, like-for-like sales for the quarter ending 19 March 2022 (Q1) are down 8.1%, although this is up 16% on a two-year basis.

Looking ahead to this year, Kingfisher said it is “mindful of heightened macroeconomic and geopolitical uncertainty” that has emerged since the start of the year. 

It is targeting further market share gains and accelerating investments for growth through the launch of its e-commerce marketplace, the expansion of Screwfix in the UK and France, new store openings in Poland, and it plans to increase trade customer penetration.

Thierry Garnier, chief executive officer, said: “Kingfisher has delivered a year of very strong financial performance. We saw growth in all banners and categories, with resilient demand from both DIY and DIFM/trade segments – each representing 50% of group sales.

“Looking forward, we are confident that these investments, supported by continued strong execution and the new demand-drivers we are seeing in our industry, will drive faster growth in sales, profit and free cash flow.”