TIDMKGF
RNS Number : 0986P
Kingfisher PLC
24 May 2018
Thursday 24 May 2018: Q1 trading update to 30 April 2018
Financial highlights
Sales % Total % Total % LFL(1) Change
2018/19 Change Change
------------------------- --------- --------- ------------------ ------------------
GBPm Reported Constant currency Constant currency
UK & Ireland 1,223 (3.7)% (3.7)% (5.4)%
- B&Q UK & Ireland 828 (8.8)% (8.8)% (9.0)%
- Screwfix 395 +9.0% +9.0% +3.6%
France 1,074 (1.0)% (3.6)% (3.9)%
- Castorama 554 (5.6)% (8.1)% (8.0)%
- Brico Dépôt 520 +4.4% +1.7% +0.8%
Other International 528 +4.5% +3.0% (0.5)%
- Poland 338 +8.0% +3.0% +1.8%
- Iberia (2) 82 (3.0)% (5.6)% (5.6)%
- Russia 68 (20.2)% (9.3)% (6.5)%
- Romania (3) 37 +84.5% +84.7% +1.6%
- Screwfix Germany 3 +21.1% +17.9% +18.6%
Total Group 2,825 (1.2)% (2.5)% (4.0)%
------------------------- --------- --------- ------------------ ------------------
------------------------------------------------------------------------------------------
-- Q1 LFL down 4.0% reflecting unusually adverse weather
conditions which impacted footfall. Impact on LFL sales of weather
related categories & temporary UK store closures:
o At Group level around 3% of 4% decline
o At operating company level:
-- B&Q c.-6% (outdoor products & snow related store
closures)
-- Castorama France c.-4% (outdoor products)
-- Screwfix c.-2% (snow related store closures)
-- Still on track to deliver Year 3 strategic milestones of our transformation plan
-- Further GBP40m returned (13.5m shares) year to date via share
buyback. Have now returned GBP500m of c.GBP600m capital return
commitment(4) ; commencing next GBP50m of remaining GBP100m
Véronique Laury, Chief Executive Officer, said:
"It was a challenging start to the year with exceptionally harsh
weather across Europe and weak UK consumer demand. This impacted
footfall, especially sales of weather related categories. February
and March were particularly affected with sales improving over the
course of April and into May.
"We are on track to deliver our ONE Kingfisher strategic
milestones for the third year in a row and we continue to see
tangible delivery of our plan. Around 40% of our ranges are now
unified and continue to be well received by customers. Sales of
these ranges, excluding outdoor products, are up, and we expect to
grow the full year Group gross margin, after clearance costs.
Meanwhile, we are into the final year of our unified IT platform
roll out with Poland now underway and Brico Dépôt France due to
start soon.
"Market conditions continue to be mixed. The UK is uncertain, as
demonstrated by recent weak retail sales data; France is
encouraging, but volatile; whilst Poland continues to be
supportive. We remain confident about delivering the business and
customer benefits of our transformation plan, supported by the
continued hard work and expertise of our colleagues."
-
Q1 trading highlights by division (in constant
currencies)
UK & IRELAND
Total sales -3.7%. LFL -5.4% reflecting a weaker
performance at B&Q and a solid performance at Screwfix
* B&Q UK & Ireland sales -8.8%. LFL -9.0% reflecting
ongoing lower footfall and soft demand patterns.
Adverse weather conditions and temporary snow related
store closures impacted LFL by c.6%
* Screwfix sales up 9.0%. LFL +3.6% including a c.2%
impact from temporary snow related store closures.
Ten new outlets opened during Q1
FRANCE
Total sales -3.6% (LFL -3.9%). Sales for the home
improvement market (Banque de France data(5) )
were down c.2% in Q1
* Castorama sales -8.1%. LFL -8.0% reflecting adverse
weather conditions, impacting LFL by c.4%, and
further investment to improve price position
* Brico Dépôt sales +1.7%. LFL +0.8%
reflecting good growth from the new unified ranges,
which are starting to re-energise the Brico
Dépôt offer, and lower exposure to outdoor
products
OTHER INTERNATIONAL
Total sales in Poland +3.0%. LFL +1.8% reflecting
a supportive market with limited impact so far
from the changes to Sunday trading laws
-------------------------------------------------------------------------
Footnotes
(1) Like-for-like sales growth representing the constant
currency, year on year sales growth for stores that have been open
for more than a year
(2) Brico Depôt Spain & Portugal
(3) Includes Praktiker Romania acquired on 30 November 2017
(4) Through to end of FY 2018/19 (over and above the annual
ordinary dividend)
(5) Includes relocated and extended stores
http://webstat.banque-france.fr/en/browse.do?node=5384326
Contacts
Tel: Email:
Investor Relations +44 (0) 20 7644 1082 investorenquiries@kingfisher.com
Media Relations +44 (0) 20 7644 1030 corpcomms@kingfisher.com
Teneo Blue Rubicon +44 (0) 20 7260 2700 Kfteam@teneobluerubicon.com
This announcement can be downloaded from www.kingfisher.com.
Data tables for Q1 2018/19 are available for download in excel
format at http://www.kingfisher.com/index.asp?pageid=59
Our next announcement will be the Q2 sales update on 16 August
2018.
We can be followed on Twitter @kingfisherplc with the Q1 results
tag #KGFQ1. Kingfisher American Depository Receipts are traded in
the US on the OTCQX platform:(OTCQX: KGFHY)
http://www.otcmarkets.com/stock/KGFHY/quote
Forward-looking statements
You are not to construe the content of this announcement as
investment, legal or tax advice and you should make you own
evaluation of the Company and the market. If you are in any doubt
about the contents of this announcement or the action you should
take, you should consult a person authorised under the Financial
Services and Markets Act 2000 (as amended) (or if you are a person
outside the UK, otherwise duly qualified in your jurisdiction).
This announcement has been prepared in relation to the financial
results for the Quarter ended 30 April 2018. The financial
information referenced in this announcement is not audited and does
not contain sufficient detail to allow a full understanding of the
results of the group. Nothing in this announcement should be
construed as either an offer or invitation to sell or any offering
of securities or any invitation or inducement to any person to
underwrite, subscribe for or otherwise acquire securities in any
company within the group or an invitation or inducement to engage
in investment activity under section 21 of the Financial Services
and Markets Act 2000 (as amended).
Certain information contained in this announcement may
constitute "forward-looking statements" (including within the
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that are not historical facts and include statements regarding the
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among other things, the Company's results of operations, financial
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END
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