Kingfisher reports slight sales growth in H1 2018

Sales grew modestly for Kingfisher plc in the first half of 2018, up 1.2% on H1 2017 (1.1% l-f-l in constant currency).

The group, owner of B&Q, Screwfix, Castorama, Brico Depot and Koctas, said solid performances in the UK and Poland were offset by “significant weakness” in France – Kingfisher has put actions into place to support H2 performance in the territory.

The group said it was on track to deliver its strategic milestones as part of its five-year transformation plan.

B&Q total sales declined 2.3% to £1,833 million. Total online sales grew 8%, representing 4% of sales.

Digital revenues now account for 6% of the group, up from 5% last year. Click and collect revenues for B&Q grew a whopping 56% versus H1 2017, thanks to the roll out of a one hour click & collect service in Q3 2017/2018.

Screwfix total sales grew 10.4% (4.5% like-for-like) to £802 million, driven by specialist trade desks exclusive to plumbers and electricians, strong digital growth of 18% and more new outlets. 21 opened in H1 2018, bringing the total to 598 (overall target is 700 UK outlets).

Kingfisher plc recently announced a string of top level appointments across the business. Full details here.

Véronique Laury, Chief Executive Officer, said: “The extent and pace of change in the retail sector is profound. We saw these changes and acted early. We’re now halfway through our ONE Kingfisher transformation and we are well on our way to becoming a truly customer led, digital, and efficient business.

“Transformation on this scale is tough, and there are challenges that we’re working through. There is still much to do to improve our performance in France and to remove inefficiencies within the business as we continue to transform at pace. I am confident that we have the right plan and the opportunity for Kingfisher is significant.

“Our H1 results reflect a solid performance in the UK and Poland whilst France remains difficult. Looking to the full year we remain on track to deliver our strategic milestones for the third year in a row and have put actions in place to support our performance. The outlook for our main markets continues to be mixed.

“We firmly believe in the transformation plan benefits and maintain our ambition. The environment is making our task more difficult than expected and we will always take  the right decisions for the company in the long-term.”