Kingfisher 1H Sales Report
- 1H sales reached GBP 6.76 billion, just shy of the estimated GBP 6.81 billion.
- Gross profit hit GBP 2.48 billion, slightly above the estimate of GBP 2.47 billion.
- Gross margin was 36.7%, beating the estimate of 33.2%.
- Operating profit came in at GBP 374 million, surpassing the estimate of GBP 338.2 million.
- Other international retail profit was GBP 26 million, close to the estimate of GBP 25.9 million.
- Total retail profit reached GBP 420 million.
- Like-for-like (LFL) sales declined by 2.4%, worse than the estimated decline of 1.75%.
- B&Q UK & Ireland LFL sales fell by 1%, better than the estimated decline of 1.24%.
- Screwfix LFL sales grew by 1.2%, in line with the estimate of 1.11%.
- Castorama LFL sales dropped by 7.7%, while estimates predicted a smaller decline of 5.41%.
- Brico Depot LFL sales decreased by 6.8%, worse than the estimated decline of 5.19%.
- Poland LFL sales dipped by 0.2%, underperforming the estimated growth of 0.53%.
- UK and Ireland LFL sales decreased by 0.2%, better than the estimated decline of 0.65%.
- France LFL sales fell by 7.2%, missing the estimate of a 5.49% decline.
- Other international LFL sales rose by 0.3%, below the estimated 1.15% growth.
- Adjusted basic EPS was 13.2p, higher than the estimate of 10.8p.
- Interim dividend per share is set at 3.80p.
- Kingfisher is on track to achieve approximately GBP 120 million in cost reductions for the full year, focusing on the first half.
- The share buyback programme of GBP 300 million is accelerating, expecting to complete by March 2025, with GBP 150 million already completed.
- UK & Ireland banners have gained market share, supported by strong e-commerce sales and addressing trade customer needs.
- Sales in France were in line with the market, reflecting a soft consumer backdrop.
- In Poland, Kingfisher gained market share supported by an improved consumer environment.
- Profit guidance has been tightened and free cash flow guidance has been upgraded based on first-half performance and current market conditions.
- Company maintains analyst ratings of 3 buys, 9 holds, and 5 sells.
A look at Kingfisher PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Kingfisher PLC, a home improvement company, is currently positioned with solid scores across key factors. With a high momentum score of 5, the company shows strong positive price trend and investor interest. This indicates a promising future outlook in terms of market performance. Additionally, Kingfisher scores well in the value and dividend categories, both at 4, showcasing good fundamental strength and potential for returns for investors. While growth and resilience scores are slightly lower at 3, there is still room for improvement in these areas to further enhance the company’s long-term sustainability and expansion.
Overall, Kingfisher PLC appears to be a promising investment opportunity based on its Smartkarma Smart Scores. With a focus on home improvement products and a global reach, the company’s solid scores in momentum, value, and dividend highlight positive prospects for investors. Improving growth and resilience factors could further bolster Kingfisher’s position in the market and drive long-term success in its industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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