B&Q owner Kingfisher reports a 21% rise in profits amid record new store openings

Hardware store Kingfisher, which operates B&Q and Screwfix stores in Ireland, reported a strong performance last year as it opened a record number of new stores.

The group’s adjusted pre-tax profit rose 20.9% to £949m on higher retail profits and lower net financial costs.

Earnings before interest, tax, depreciation and amortization reached £1.6bn, up from £1.5bn in 2020/2021, on a net debt to EBITDA ratio of one.

The group has proposed a total dividend per share of 12.40p, up 50.3 per cent over the previous full year, giving a total dividend of 8.25p.

In its full-year 2021/2022 results released today, the group announced that total currency-adjusted sales increased by 9.7 percent to es 13,183 million (DIFM) trading business.

Online sales now account for 18 percent of total sales, up 10 points from before the pandemic.

Sales in the UK and Ireland rose 13.4 per cent (11.8 per cent on a like-for-like basis), with UK and Ireland retail profits up 16.7 per cent to £794 million.

The results came in slightly above analysts’ expectations, despite multiple Covid-19 lockdowns over the past year.

The group has no direct exposure to Russia, having completed the sale of its Castorama business to Russian hardware store Maxidom in 2020.

This month the sale of products from Russia and Belarus stopped.

While overall product availability is still below “normal”, Kingfisher said in a statement that it has been building stocks in key categories this year ahead of peak trading periods.

The company opened a record 70 new Screwfix stores in the UK and Ireland (12 in Ireland) last year and is targeting 80 in 2022/2023.

However, high demand, port congestion and issues with shipping costs and availability are expected to continue throughout 2022.

“While the macroeconomic and geopolitical environment is uncertain for the coming year, you can expect us to remain focused on revenue and market share growth, strong execution, effective management of our gross margin and active and responsive management of our operating expenses,” said CEO Thierry Garnier.

“We have now been working on our new strategy for over two years and the implementation is ahead of schedule.”

https://www.independent.ie/business/irish/b-and-q-owner-kingfisher-reports-21pc-profit-surge-amid-record-new-store-openings-41473381.html B&Q owner Kingfisher reports a 21% rise in profits amid record new store openings

Fry Electronics Team

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