Kingfisher profits surge as B&Q and Screwfix drive growth

Kingfisher plc has reported a significant increase in profits, thanks to cost-cutting measures and strong performances from its brands B&Q and Screwfix.

For the year ending January 31, the FTSE 100 company posted pre-tax profits of £378 million, marking a 23% increase, while adjusted profits rose by 6% to £560 million. Sales increased slightly by 1.3%, reaching £12.95 billion.

Strong demand in the UK contributed to this growth, with like-for-like sales rising by 3.3% at B&Q and 3.2% at Screwfix, driven by online expansion, trade-focused initiatives, and new store openings.

Chief Executive Thierry Garnier noted that the company has made “rapid progress” in its growth strategy and anticipates further profit increases this year, with adjusted earnings expected to range from £565 million to £625 million.

Garnier added: “We are very mindful of the crisis and the impact on customers.

“We have no operations in the region and have only two suppliers in this area, so are expecting a very limited impact.”

Despite facing challenges from higher wages, increased employer national insurance contributions, and investments in stores, the company has successfully offset rising costs.

Management also downplayed the impact of geopolitical tensions in the Middle East, asserting that the business is “well-hedged” in terms of energy and expects only a limited short-term effect from disruptions linked to the Iran conflict.

However, Kingfisher warned that the overall consumer environment remains “mixed,” as households continue to cope with the rising cost of living.

Garnier said: “We have continued to execute our strategy at pace and delivered good margin and cost discipline.

“We are making rapid progress against our strategic priorities across our banners.

“With a mixed consumer environment across our markets, we continue to focus on delivering our strategic priorities, maintaining cost discipline and driving shareholder returns.

“This positions us well to capitalise on the attractive long-term structural growth opportunities within our markets.”