Kingfisher Reports Strong H1 Profit, Raises Full-Year Outlook
Kingfisher reported a rise in first-half adjusted pre-tax profit to £404 million, up 9.9%, driven by gross-margin gains and structural cost savings of £44 million. The company raised its full-year guidance for both adjusted pre-tax profit (£595–635 million) and free cash flow (£480–520 million). Trade sales excluding Screwfix grew 16%, e-commerce rose 16%, and marketplace GMV surged by 42%. These digital channels contributed over £13 million in retail profits. However, performance was mixed across markets with stronger results from Poland and Iberia offsetting weaker performances at B&Q and Brico Dépôt. Kingfisher is responding to market pressures through store transformations, new lower-priced bathroom ranges, and continued investment in trade and digital capabilities. CFO Bhavesh Mistry highlighted that gross-margin gains and cost discipline more than offset £48 million of operating-cost inflation, including higher U.K. national insurance contributions. CEO Thierry Garnier noted the company's strategy is gaining momentum, particularly at Screwfix and within its marketplace business. The firm returned £333 million to shareholders via dividends and buybacks in H1 and plans to complete half of a £300 million share-buyback program by year-end. Capital expenditures totaled £171 million for new stores, technology upgrades, and product ranges.
Topics: earnings free cash flow market performance profit guidance