B&Q owner Kingfisher has reported a “resilient” set of results after a series of profit warnings last year, but weaker sales in France continued to weigh on profit.
According to its half-year earnings for the six months ended 31 July 2024, sales fell by 1.8 per cent overall, to £6.75bn from £6.9bn, while gross profit fell by 0.6 per cent to £2.5bn.
The British multinational, which also owns Screwfix, said operating profit rose by two per cent to £374m, and earnings per share rose by 3.9 per cent to 12.8p.
Sales in France fell by 7.2 per cent year on year due to the “soft consumer backdrop”, the company said, while sales of big-ticket items fell by 6.8 per cent year on year.
E-commerce sales rose by 8.4 per cent, and sales at Screwfix and Tradepoint were positive, the company said.
Last year, Kingfisher issued two profit warnings for B&Q as it said a weak economy would dismantle its earnings for the full year but an improved economic backdrop seems to have aided the retailer, as sales at B&Q dipped only 0.2 per cent in the UK during the period.
Thierry Garnier, chief executive officer, said: “I am proud of the unwavering focus of our teams in executing against our strategic priorities, with two key highlights. First, our e-commerce sales penetration improved by 1.5 per cent to 18.3 per cent and B&Q’s e-commerce marketplace reached a 40 per cent share of its online sales. And second, in trade, we are extending the successes we have seen in the UK to other markets, with trade sales penetration growing strongly in France, Iberia and Poland.
“With positive early signs of a housing market recovery, notably in the UK, Kingfisher is strongly positioned for growth in 2025 and beyond.”
Kingfisher tightened its profit guidance and upgraded its free cash flow guidance for the year.
Thierry added the company remained “focused on continuing to manage costs and cash effectively, and driving further market share gains by delivering on our key strategic priorities”.
The firm rolled out £120m of cost-saving measures during the half.