TIDMKGF
RNS Number : 9508X
Kingfisher PLC
16 August 2018
Thursday 16 August 2018: Q2 trading update to 31 July 2018
Financial highlights
Sales % Total % Total % LFL(1) Change
2018/19 Change Change
------------------------- --------- --------- ------------------ ------------------
GBPm Reported Constant currency Constant currency
UK & Ireland 1,412 +6.0% +6.0% +4.2%
- B&Q UK & Ireland 1,005 +3.9% +3.9% +3.6%
- Screwfix 407 +11.8% +11.8% +5.5%
France 1,193 +0.4% (0.7)% (1.0)%
- Castorama 648 (3.1)% (4.1)% (3.8)%
- Brico Dépôt 545 +4.8% +3.7% +2.6%
Other International 650 +3.6% +5.6% +1.4%
- Poland 388 +1.8% +2.5% +1.3%
- Iberia (2) 102 +0.8% (0.3)% (0.3)%
- Russia 99 (10.9)% (1.1)% +2.1%
- Romania (3) 58 +79.5% +80.8% +4.6%
- Screwfix Germany 3 +21.6% +20.4% +20.4%
Total Group 3,255 +3.4% +3.4% +1.6%
------------------------- --------- --------- ------------------ ------------------
-- Q2 Group LFL up 1.6% helped by improved performance of
weather-related categories which contributed c.+2% to Group LFL; H1
LFL -1.1% (Q1 LFL -4.0%)
-- Good Q2 sales recovery at B&Q and Screwfix versus Q1
within the context of a continuing weak UK consumer backdrop
-- Sales and gross margin of unified and unique ranges continued to grow
-- H1 Group gross margin after clearance costs expected to be c.-40bps with Q2 ahead of Q1
-- Actions in place to improve H2 Group gross margin and
therefore still expect to grow the full year Group gross margin
after clearance costs
-- France performance in H1 reflects:
o Weaker footfall and impact of transformation-related activity
at Castorama
o Continued sales growth at Brico Dépôt benefitting from new
unified ranges
o Higher costs (c.+3.5% in constant currency) including phasing
of marketing investment in Brico Dépôt
-- GBP90m returned (30m shares) year to date via share buyback.
Now returned GBP550m of c.GBP600m capital return commitment (4)
Véronique Laury, Chief Executive Officer, said:
"We started our transformation two and a half years ago and are
on track to deliver our strategic milestones for the third year in
a row.
"In Q2, I'm pleased that we grew our sales after the
exceptionally harsh weather conditions in Q1. In B&Q, Screwfix
and Brico Dépôt France we delivered good sales growth. However, the
performance of Castorama France has been more difficult and as a
result we have put additional actions in place to support our full
year performance in France with the benefits expected to come
through in H2.
"We look forward to providing a more detailed update at our H1
results in September."
Q2 trading highlights by division (in constant currencies)
UK & IRELAND
Total sales +6.0%. LFL +4.2% reflecting improved performances at
B&Q and Screwfix within the context of a continuing weak UK consumer
backdrop
* B&Q UK & Ireland sales +3.9%. LFL +3.6% driven by
strong performance of weather-related categories
benefiting LFL by c.+7% (impact on LFL in Q1 18/19
c.-6%, H1 18/19 c.+1%)
* Screwfix sales +11.8%. LFL +5.5% with 12 new outlets
opened during Q2
FRANCE
Total sales -0.7% (LFL -1.0%). Sales for the home improvement market
(Banque de France data(5) ) were up c.1% in Q2
* Castorama sales -4.1%. LFL -3.8% reflecting continued
softer footfall and the impact of
transformation-related activity. LFL of
weather-related categories was flat (impact on LFL in
Q1 18/19 c.-4%, H1 18/19 c.-2%)
* Brico Dépôt sales +3.7%. LFL +2.6%
reflecting good growth from the new unified ranges,
which continue to re-energise the Brico
Dépôt offer, supported by investment in
marketing
OTHER INTERNATIONAL
Total sales in Poland +2.5%. LFL +1.3% against a strong comparative
(Q2 17/18: +4.0%)
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 Q2 2018/19 are available for download in excel
format at http://www.kingfisher.com/index.asp?pageid=59
Our next announcement will be the Half Year results on 19
September 2018.
We can be followed on Twitter @kingfisherplc with the Q2 results
tag #KGFQ2. 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 your 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 31 July 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
Company's intentions, beliefs or current expectations concerning,
among other things, the Company's results of operations, financial
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in tax rates, liquidity, prospects, growth and strategies. By their
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The Company does not undertake any obligation to update or
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END
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