Kingfisher, the home improvement retail company, released a cautionary statement on Monday, predicting its annual profit would not meet market forecasts after revealing a 25% decline in the financial year of 2023-24. The company attributes the decline, in part, to a delay evident between thriving housing demand and the subsequent need for home improvement, as observed by CEO Thierry Garnier.
The big-name group, which is listed on FTSE 100 and operates brands such as B & Q and Screwfix in the UK and Ireland, while also owning Castorama and Brico Depot in France and various other markets, witnessed an 11% slump in share value over the prior year. The company’s interests include 8 B & Q stores and 35 Screwfix locations within the republican region.
Instead of expected average forecasts of £560 million, the company’s adjusted profit before tax for the fiscal year 2024-25 is estimated in the range of £490 million to £550 million. Kingfisher stated that the first quarter of this year saw a 2.3% downturn in like-for-like sales from the previous year, despite beneficial sales trends in the UK, Ireland, France, and Poland over the last quarter along with positive volume trends for all three product categories – standard items, high-priced goods, and seasonal offerings.
In 2023-24, Kingfisher secured an adjusted profit before tax of £568 million, which aligns with the revised guidance provided in November but is a significant decrease from the £758 million made in the prior year. The company’s total sales dropped by 1.8% to a value of £12.98 billion, with a 3.1% decline in like-for-like sales.
While the UK and Ireland divisions demonstrated growth and increased their market footprints, sales operations in France and Poland encountered significant headwinds, exacerbated by challenging customer landscapes. Kingfisher plans to navigate these conditions through business simplification in France, including a restructuring plan and overhaul of the Castorama store network. This information comes courtesy of Reuters with content copyright by Thomson Reuters 2024.