Final results for year ended 31 January 2017

22 March 2017

 

Financial highlights

      % Total Change % Total Change % LFL* Change
  2016/17
 
2015/16
 
Reported
 
Constant currency
 
Constant currency
 
Adjusted sales* £11,225m £10,331m +8.7% +1.7% +2.3%
Retail profit* £847m £746m +13.5% +6.1%  
Underlying* pre-tax profit £787m £686m +14.7%    
Adjusted* pre-tax profit £743m £686m +8.3%    
Underlying basic EPS 25.9p 22.0p +17.7%    
Adjusted basic EPS 24.4p 22.0p +10.9%    
Lease adjusted ROCE* 12.5% 12.3% +20bps    
Full year dividend 10.4p 10.1p +3.0%    
Net cash* £641m £546m n/a    

Year 1:

Group results ahead on all key metrics

  • Total adjusted sales in constant currencies up 1.7% (UK & Ireland* +2.4%; France* (1.4)%; Other International* +7.0%)
  • Underlying pre-tax profit of £787m, up 14.7% driven by
    • UK and Poland LFL sales growth
    • £30m Goods Not for Resale* (GNFR) benefits delivering earlier than planned
    • £52m favourable FX movements on the translation of non-sterling retail profits

Returned £430m of cash to shareholders

    • £230m via ordinary dividend (full year dividend up 3.0%)
    • £200m via share buyback

Delivered key Year 1 ONE Kingfisher strategic milestones

Year 2 and beyond:

Well set up for Year 2 alongside preparing for Year 3
Key learnings taken on board, aware of challenges
Reaffirming 5 year financial transformation targets

  • Expected to deliver £500m sustainable EBIT uplift by end of FY 20/21 over and above business as usual (BAU)*
  • Total expected cash costs* of £800m (FY 16/17 £77m; FY 17/18 guiding c.£270m)
  • Improved ROCE
  • Capital return of c.£600m by end of FY 18/19

Statutory reporting

  2016/17 2015/16 % Change Reported  
Statutory sales* £11,225m £10,441m +7.5%  
Statutory pre-tax profit £759m £512m +48.2%  
Statutory post-tax profit £610m £412m +48.1%  
Basic EPS 27.1p 17.8p +52.2%  

*Throughout this release ‘*’ indicates first instance of a term defined and explained in the Glossary (section 5). Not all of the figures and ratios used are readily available from the unaudited preliminary results included in part 2 of the announcement. These non-GAAP measures, including constant currency and like-for-like sales growth, underlying and adjusted profit measures, management believes are both useful and necessary to better understand the Group’s results. Where required, a reconciliation to statutory amounts is set out in the Financial Review (Section 4).

Véronique Laury, Chief Executive Officer, said:

“It has been a very productive and important year, a year which has again delivered sales and profit growth. I am really pleased that our performance has been achieved alongside delivering the key first year strategic milestones of our ambitious five year transformation plan, based on creating a unified company where customer needs come first. We have learned a lot and are aware of the challenges. We are well set up for next year and beyond as the level of activity increases.

“Looking forward, the EU referendum has created uncertainty for the UK economic outlook and we remain cautious on the outlook for France, especially in light of the forthcoming presidential elections. Looking longer term, supported by the expertise and energy of our colleagues, we remain confident in the size of the prize and our ability to deliver the plan - both the financial benefits the transformation will unlock and the stronger business it will create.”

 

Contacts:

Investor Relations
+44 (0) 20 7644 1082
investorenquiries@kingfisher.com

Media Relations
+44 (0) 20 7644 1030
corpcomms@kingfisher.com

Teneo Blue Rubicon
+44 (0) 20 7260 2700
Kfteam@teneobluerubicon.com

Further copies of this announcement can be downloaded from www.kingfisher.com or viewed on the Kingfisher IR iPad App available for free at the Apple App store. We can be followed on Twitter @kingfisherplc.

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