// DIY retail giant Kingfisher has seen full-year profits drop as sales slip
// The B&Q owner reported adjusted pre-tax profits dropped 20% to £758m in the year to 31 January
B&Q and Screwfix owner Kingfisher full-year profits have plummeted 20.2% as demand for home improvement goods wanes amid the rising cost of living.
Adjusted pre-tax profits for the DIY retailer dropped to £758m in the 12 months to 31 January, down from £949m in the year before.
Sales were down 0.7% on a constant currency basis to £13.06m while like for like sales were up 15.6% on pre-pandemic levels but were 2.1% lower year on year.
Despite lower sales, chief executive Thierry Garnier said performance across the group’s DIY and trade channels have “remained resilient”.
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“We have maintained a sharp focus on pricing to deliver value to our customers during this challenging period for household finances, while at the same time managing our cost inflation pressures effectively,” Garnier said.
“We continue to execute our strategy at pace and invest in our multiple growth opportunities. We are proud of the progress our teams have made during the year, and since the start of our ‘Powered by Kingfisher’ strategy.”
Garnier said the group’s online proposition had “performed strongly” with ecommerce sales up 146% over the last three years. However, online sales dropped 9.1% last year.
He said the group was “strengthening” its proposition for trade customers with the acceleration expansion of Screwfix, which saw the retailer open 87 stores in the past 12 months, pushing it closer to its goal of 1,000 branches.
“We remain confident in both the growth of our industry, and in our strategic priorities supporting growth ahead of our markets. And we are announcing today our new medium-term financial priorities, focused on growth, cash generation and higher returns to shareholders.”
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