Kingfisher have released the half year results to July 31, 2023, with sales slightly ahead of expectations. The UK & Ireland performance was positive (LFL +1.7%) with strong market share gains at Screwfix.
Group H1 total sales -1.0% and LFL -2.2%, with Q2 LFL -1.2% up from Q1 (LFL -3.3%) Regionally, France (LFL -3.8%) saw resilient performance at Castorama, although weaker at Brico Dépôt. Poland (LFL -10.9%) has been impacted by strong comparatives and had a weaker than expected Q2. The company announced its continued international expansion plans.
The company noted resilient core and 'big-ticket' category sales LFL -1.0% (78% of sales), with volumes showing an improving trend through H1. Seasonal sales LFL -5.9% (22% of sales), with sequential improvement in Q2 driven by better UK weather conditions in May and June.
Thierry Garnier, Chief Executive Officer, said: "Our LFL sales in H1 were slightly ahead of expectations, against a backdrop of unseasonal weather and ongoing macroeconomic challenges in our markets. We saw good growth in our UK banners, with Screwfix gaining significant market share. At the same time, we faced strong comparatives and a weaker trading environment in Poland, while consumer confidence in France is at a 10-year low. Overall, demand for our core and 'big-ticket' categories was healthy, and we were pleased to see an improving volume trend in these categories through the half.
"We continue to make strong progress against our strategic priorities. E-commerce sales were up 7% in H1, supported by the continued success of our online marketplaces. B&Q's marketplace sales reached 33% of its e-commerce business in July. We leveraged our data science capabilities to develop AI-powered solutions such as our markdown tool, which in early pilots at B&Q delivered a very encouraging margin improvement on clearance products. We also advanced our retail media plans through new partnerships to accelerate advertising income. And we continued to invest in dedicated ranges, tailored services and expert colleagues to better serve trade customers across all our banners, including launching 'Pro' zones in 27 stores in France and Poland.
"Further, with nine Screwfix stores now open in France including four new stores in H1, customer momentum is building. We are now planning for up to 20 store openings this year. These early results in France have encouraged us to take the next step in our international expansion journey, and we are today announcing the launch of Screwfix in Q3 as a pure-play online retailer in up to 20 European countries.
"Trading in the UK & Ireland continues to have positive momentum. However, to better reflect our performance in H1 and the trading environment in our markets, we have updated our profit guidance for this year and are proactively managing our operating costs accordingly. We remain very positive on the medium-to-long term outlook for home improvement growth in our markets, and confident in our ability to grow market share and deliver on our medium-term financial objectives. Underscoring this confidence, we are today announcing a new £300m share buyback programme,
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