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October 2, 2022
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Kingfisher announces the financial results for the first half of the year

Kingfisher Group announces the financial results for the first half of the fiscal year (February – July 2022), reporting an increase in sales of almost 17% compared to pre-pandemic levels.

In Romania, Brico Dépôt LFL sales in the first semester increased by 8.9% compared to the same period last year, and with more than 43% on a corresponding 3-year basis, thus consolidating the positive evolution of the company in recent years. Also, locally, sales recorded in the first half of the year are higher than the company’s estimated market growth for 2022, reaching £145 million.

 

Highlights & H1 22/23 Group results

 

  • Group sales significantly ahead of pre-pandemic levels, supported by market share gains.
  • Resilient sales from both DIY and DIFM/trade categories.
  • Strong execution against our strategic priorities and investing for growth – digital, trade proposition, Screwfix and Poland expansion.
  • LFL sales down 4.1% and corresponding 3-year LFL up 16.6%
  • Positive 1-year growth in Poland, Iberia and Romania and resilient performance in France.
  • Total e-commerce sales down 19% (3-year growth up 156%).
  • Retail profit down 27.1% in constant currency to £555m, largely reflecting very strong prior year comparatives in the UK & Ireland.

 

Adela Smeu, CEO, Brico Dépôt Romania, stated:

 

‘We continue to deliver strong results locally, ending the first semester with a growth of 8.9% compared to the same period last year. An important driver of growth has been the diversification of our product ranges, both online and in-store. Our existing portfolio includes products with a high level of quality, at Kingfisher standards, but also various sustainable solutions, that can help consumers achieve significant savings in water and electricity. We also offer customers the opportunity to purchase products in instalments, without interest, at affordable prices.

In the near future, a large part of our efforts will be focused on projects designed to develop dedicated services, such as consulting, home delivery or interest-free instalment financing programs, so that, in a challenging period from many points of view, our customers can benefit from a complete, improved buying experience. We want them to find in Brico a trustworthy partner and suitable sustainable solutions, to protect the environment and their purchasing power.

All these achievements would not be possible, however, without the support of the Brico Dépôt teams, without the commitment they show every day, and I would like to thank them all for their contribution to the results we registered.’

 

Thierry Garnier, Kingfisher Chief Executive Officer, said:

 

“Kingfisher has delivered a very resilient first half of sales. While facing very strong comparatives from the prior year as well as a more challenging environment, LFL sales were 16.6% ahead of pre-pandemic levels with a sequential improvement from Q1 to Q2. This was driven by the extension of share gains in all our key markets, reflecting successful execution of our strategy, and resilient sales from both DIY and trade customers. We are now back to pre-pandemic levels for in-store product availability and maintaining competitive pricing across our banners.

“Looking to the months ahead, although trading in the year to date has been in line with our expectations, we remain vigilant against the more uncertain economic outlook for the second half. We are therefore focussed on delivering value to our customers at a time when they need it most. You can expect continued strong execution, with a focus on growing sales and market share, effective management of our gross margin, and alignment of our costs and inventories to market conditions.

“With the business and our balance sheet in a strong position, we continue to invest in opportunities to drive growth. B&Q successfully launched its first home improvement marketplace during the period, and we are now preparing for marketplace launches in France, Poland and Iberia. We are also continuing to invest in the trade segment through Screwfix’s expansion in the UK and Ireland, as well as the further development of our offer for tradespeople across our banners, building on the success of TradePoint. We are on course to open our first Screwfix stores in France within a few weeks from now. And we are developing innovative new products and services to support more sustainable and energy efficient homes, which will benefit our customers and the environment.

“These investments, together with the proven resilience of the home improvement sector, our balanced exposure to DIY and DIFM/trade, and our strong and consistent execution, support our confidence in continuing to grow ahead of our markets.”

Additional information about the results recorded by the Kingfisher Group in the first half of the year can be found here.

 

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