Preliminary results for the year ended 30 January 2010
25 March 2010
Trading Review – OTHER INTERNATIONAL
|Sales £m||2009/10||2008/09||% Change
|Retail profit £m||2009/10||2008/09||% Change
Other International includes Poland, China, Spain, Russia, Turkey JV and Hornbach in Germany. Continuing operations only. JV and Associate sales are not consolidated. Prior year figures have been restated to exclude Ireland.
All trading commentary below is in constant currencies.
Other International total sales increased 5.1% to £1.8 billion (LFL sales broadly flat). Retail profit was up 77.8% to £125 million, reflecting strong growth in Poland and lower losses in China.
During 2009/10, 16 stores opened, five in Poland, five each in Turkey and Russia and one in Spain, adding around 18% new space. A further 16 stores are planned for 2010/11, including six in Poland, five in Turkey, four in Russia and one in Spain.
In Eastern Europe sales in Poland were up 8.0% to £1.0 billion (+0.3% LFL despite a tough comparative of +9.8%) reflecting good growth in expanded decoration ranges and a good response to the new garden catalogue. Retail profits were up 10.7% to £125 million with gross margin percentage slightly higher benefiting from sales of higher margin products and buying scale benefits. Costs grew slower than sales due to tight cost control. Russia continued to be encouraging with sales up 18.6% to £163 million and trading profitably at store level. In Turkey, Kingfisher's 50% JV, Koçtaş, grew retail profit by almost 40% due to tight cost control.
Elsewhere, Spain delivered its first retail profit with sales up 28.2% to £200 million, significantly outperforming the market. Hornbach, in which Kingfisher has a 21% economic interest, contributed £31 million to retail profit (2008/09: £29 million).
B&Q China sales declined 11.1% to £444 million primarily reflecting 20 fewer net stores now trading compared to the prior year. As the year progressed the housing market improved, boosting demand. LFLs were down 3.3% (2008/09: down 27.9%) and losses of £34 million were almost half that of the previous year. The turnaround plan announced last year is progressing well.