First Quarter trading update to 30 April 2017

24 May 2017

 

Kingfisher reports sales of £2.9 billion, LFL(1) down 0.6%

Financial highlights

  Sales
2017/18
£m
% Total
Change
Reported
% Total
Change
Constant currency
% LFL Change
Constant currency
UK & Ireland    1,270 +1.5% +1.4% +3.5%
- B&Q UK & Ireland 908 (4.4)% (4.6)% +0.5%
- Screwfix 362 +20.3% +20.3% +12.6%
France 1,085 +3.8% (5.0)% (5.5)%
- Castorama 587 +4.9% (4.0)% (4.3)%
- Brico Dépôt 498 +2.5% (6.2)% (6.8)%
Other International 505 +18.4% +3.1% +0.7%
- Poland 313 +17.0% +5.7% +3.5%
- Russia 86 +35.8% (4.1)% (7.8)%
- Spain 77 +6.1% (2.9)% (1.2)%
- New Country Development(2) 29 n/a n/a n/a
Total Group 2,860 +5.0% (0.9)% (0.6)%
  • Q1 LFL down 0.6% reflecting continued weaker sales in France and some business disruption from our ONE Kingfisher plan
  • Remain on track to deliver Year 2 strategic milestones
  • Returned further £79m (23m shares) year to date via share buyback of previously announced c.£600m capital return(3)

Véronique Laury, Chief Executive Officer, said:

“We have set ourselves up well for our transformation, which continues in line with our plans. Strong performance in Screwfix and Poland continues, though performance in France remains weak. In addition, we are experiencing some business disruption given the volume of change, as we clear old ranges, remerchandise new ranges and continue the roll out of our unified IT platform.

“However, we are on track to deliver our Year 2 strategic milestones. Early customer reaction to our new ranges is encouraging, especially in France where our new unique bathroom ranges are launching first. We are also progressing well with our IT platform, which is now live in nearly a third of our Castorama France stores and which will enable us to build a much stronger digital offer.

“We remain confident in the size of the prize and our ability to deliver our long term plan, both the financial benefits of the transformation and the benefits to customers, supported by the continued expertise and energy of our colleagues.”

Q1 trading highlights by division (in constant currencies)

UK & IRELAND

  • Total sales +1.4%. LFL +3.5% reflecting continued strong Screwfix performance and modest price inflation
    • B&Q UK & Ireland sales -4.6% reflecting annualisation of completed store closure programme. LFL +0.5% including benefit from sales transference associated with store closures(4) and strong digital growth (+31%). LFL of seasonal +17.5%. LFL of non-seasonal, including showroom -3.9%
    • Screwfix sales up +20.3% (LFL +12.6%) driven by its leading digital capability, new and extended ranges and new outlets

FRANCE

  • Total sales -5.0% (LFL -5.5%). Sales for the home improvement market (Banque de France data(5)) were down c.1% in Q1
    • Castorama sales -4.0% (LFL -4.3%). LFL of seasonal +3.3%. LFL of non-seasonal, including showroom -6.9%
    • Brico Dépôt sales -6.2% (LFL -6.8%)

OTHER INTERNATIONAL

  • Total sales in Poland +5.7% (LFL +3.5%) benefiting from a supportive market. LFL of seasonal -5.9%. LFL of non-seasonal, including showroom +5.2%

Footnotes

(1) Like-for-like sales growth representing the constant currency, year on year sales growth for stores that have been open for more than a year
(2) Brico Dépôt Romania, Brico Dépôt Portugal and Screwfix Germany
(3) Through to end of FY 2018/19 (over and above the annual ordinary dividend); now returned £279m of the c.£600m
(4) c.1% LFL sales transference benefit from B&Q store closures remains full year guidance
(5) Includes relocated and extended stores http://webstat.banque-france.fr/en/browse.do?node=5384326

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

This announcement can be downloaded from www.kingfisher.com or viewed on the Kingfisher IR iPad App. Data tables for Q1 2017/18 are available for download in excel format at http://www.kingfisher.com/index.asp?pageid=59
Our next announcement will be the Q2 sales update on 17 August 2017.

We can be followed on Twitter @kingfisherplc with the Q1 results tag #KGFQ1. Kingfisher American Depository Receipts are traded in the US on the OTCQX platform:(OTCQX: KGFHY) http://www.otcmarkets.com/stock/KGFHY/quote

Forward-looking statements

You are not to construe the content of this announcement as investment, legal or tax advice and you should make your own evaluation of the Company and the market.  If you are in any doubt about the contents of this announcement or the action you should take, you should consult a person authorised under the Financial Services and Markets Act 2000 (as amended) (or if you are a person outside the UK, otherwise duly qualified in your jurisdiction).

This announcement has been prepared in relation to the financial results for the Quarter ended 30 April 2017. The financial information referenced in this announcement is not audited and does not contain sufficient detail to allow a full understanding of the results of the group.  Nothing in this announcement should be construed as either an offer or invitation to sell or any offering of securities or any invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the group or an invitation or inducement to engage in investment activity under section 21 of the Financial Services and Markets Act 2000 (as amended).

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The Company does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances or in the Company’s expectations.