Kingfisher runs in London, raises guidance for 2024-2025
Europe's number one DIY group (and number three in the world) and owner of, among others, Castoroma and Brico Depot, is forecasting an adjusted pre-tax profit of £550 million for 2024-2025, while previously targeting £490-550 million
by Giuliana Licini
2' min read
2' min read
(Il Sole 24 Ore Radiocor) - Kingfisher is racing on the London Stock Exchange, buoyed by improved guidance for 2024-2025, after a first half of the year with falling revenues but rising profits. The stock of Europe's number one DIY company (and the world's number three) posted the biggest rise in the Ftse 100 index and also in the Stoxx Europe 600. Kingfisher, which owns Castoroma, Brico Depot, B&Q and Screwfix, among others, expects an adjusted pre-tax profit of £550m for 2024-2025, whereas it was previously targeting £490-550m, after making a profit of £568m in 2023. The group also expects free cash flow of 410-460 million (from the 350-410 million initially indicated) and has decided to accelerate the conclusion of the £300 million buy back, now expected by March 2025.
First half year in line with expectations, sees pink for the future
Kingfisher emphasises that it is 'strongly positioned for growth in 2025 and beyond', being 'more agile' after 'significant structural cost cuts', and says it is confident of 'multiple drivers of profitable growth in the medium term'. Meanwhile, the first half (to 31 July) ended with sales of £6.75bn (-1.8% on an historical basis and -1.4% in constant currencies), operating profit of £374m (+2%) and pre-tax profit of £324m (+2.3%). "The performance in the first half was overall in line with our expectations. Customers continued to repair, maintain and renovate their homes and this allowed for a resilient trend in our main product categories. As expected, demand for more expensive products remained weak, in line with the market. Against this backdrop, we maintained a strong focus on effective cost and inventory management," commented CEO Thierry Garnier, pointing out that the group's brands gained market share in the UK and Poland, while in France the sales trend (-7%) was affected by the weak consumer climate. "With the first positive signs of recovery in the property market, particularly in the UK, Kingfisher is strongly positioned for growth in 2025 and beyond," Garnier further stated. The group also indicated that it was on track to achieve cost reductions of around £120 million for the full year, mostly realised in the first half.
