Preliminary results for the year ended 29 January 2011
24 March 2011
2010/11 Trading Review by Division – Other International
|Sales £m||2010/11||2009/10||% Change
|Retail profit £m||2010/11||2009/10||% Change
Other International includes Poland, China, Spain, Russia, Turkey JV and Hornbach in Germany. Joint Venture (Koçtaş JV) and Associate (Hornbach) sales are not consolidated
2010/11: £1 = 1.17 euro (2009/10: 1.13 euro)
2010/11: £1 = 4.65 Polish zloty (2009/10: £1 = 4.86 Polish zloty)
2010/11: £1 = 10.41 Chinese renminbi (2009/10: £1 = 10.79 Chinese renminbi)
All trading commentary below is in constant currencies
Other International total sales increased by 1.7% to £1.9 billion (-1.2% LFL). Retail profit was up 34.3% to £171 million driven by profit growth in Poland, Spain and Turkey and significantly lower losses in China.
During 2010/11, 10 new stores opened, three in Poland, two in Russia, four in Turkey and one in Spain, adding around 6% new space. A further 16 new stores are planned for 2011/12, including six in Poland, four in Russia and six in Turkey, adding around 10% new space.
In Eastern Europe sales in Poland were up 0.7% (-2.8% LFL) to £1,062 million in a more stable market after a difficult first half (2010/11 H1 -6.0% LFL). New bathroom and garden catalogues and expanded decoration ranges all boosted sales and profits. Retail profit was up 3.1% to £134 million driven by the sales growth and gross margins (+60 basis points) benefitting from sales of higher margin products, shrinkage reduction, buying scale benefits and tight cost control. Sales in Russia grew 39.2% to £240 million reflecting new store openings. In Turkey, Kingfisher's 50% JV, Koçtaş, retail profit grew strongly due to strong sales growth (+7.3% LFL), more direct sourcing benefitting gross margins and tight cost control.
Elsewhere, in Spain profits grew strongly with sales up 16.4% to £225 million, significantly outperforming the market. Hornbach, in which Kingfisher has a 21% economic interest, contributed £31 million to retail profit (2009/10: £30 million).
B&Q China sales declined 16.2% to £386 million primarily reflecting 15% less space now trading compared to the prior year. Like-for-likes declined by 2.3%. The 'fix-it' phase of the turnaround plan remains on track with losses reducing as planned to £8 million, down almost 80% on the prior year (2009/10: loss of £36 million).