Preliminary results for the year ended 28 January 2012
22 March 2012
|Sales £m||2011/12||2010/11||% Reported Change||% Constant Change||% LFL
|Retail profit £m||2011/12||2010/11||% Reported Change||% Constant Change|
Other International comprises Poland, China, Spain, Russia, Turkey JV and Hornbach in Germany. Joint Venture (Turkey JV) and Associate (Hornbach) sales are not consolidated
All trading commentary below is in constant currencies
Other International total sales increased by 7.3% to £2.0 billion (+2.2% LFL). Retail profit was up 13.2% to £188 million driven by profit growth in Poland, Turkey, Germany and Russia and lower losses in China.
During 2011/12, 17 net new stores opened, eight in Poland, four in Russia, six in Turkey and one rationalisation in China, adding around 10% new space. A further 15 new stores are planned for 2012/13, including six in Poland, two in Russia, four in Turkey and three in Spain, adding around 7% new space.
In Eastern Europe sales in Poland were up 6.2% (+1.5% LFL) to £1,094 million. Expanded decorative ranges and a stronger performance in the building category all boosted sales and profits. Retail profit was up 3.8% to £135 million reflecting the sales growth with gross margins benefiting (+30 basis points) from more direct sourcing and buying scale benefits and continued tight cost control. In Russia sales grew by 34.6% to £321 million reflecting new store openings and strong LFL growth (+14.9% LFL). In Turkey, Kingfisher's 50% JV, Koçtaş, grew retail profit by 13.1% to £14 million reflecting strong sales growth (+5.9% LFL), more direct sourcing benefiting gross margins and tight cost control.
Elsewhere, in Spain the Brico Dépôt business continued to grow sales in a tough market with sales up 6.3% (+4.0% LFL) to £242 million. Hornbach, in which Kingfisher has a 21% economic interest, grew its retail profit contribution by 6.0% to £33 million (2010/11: £31 million).
B&Q China sales declined 6.0% to £366 million (-4.5% LFL) reflecting one less store and a more challenging housing market than anticipated (down 16%(1)). Losses of £3 million for the year were significantly reduced on the prior year (2010/11: £8 million loss) reflecting continued tight cost management and the annualising of sub-let rental income.
- New property transaction sales for China's 13 largest cities Jan 2011-Dec 2011 according to the China Real Estate Exchange Center