Kingfisher revises its annual objectives downwards

The stock plunged 10,25% on the London Stock Exchange on Tuesday around 14:45 p.m. (12:45 p.m. GMT).

During the first half (ended July 31), the group's net profit stood at 237 million pounds (274 million euros) compared to 373 million a year earlier, according to a press release.

The group achieved a turnover of 6,88 billion pounds (7,98 billion euros), a slight increase of 1,1%.

“Despite unfavorable weather and a complicated macroeconomic context in our markets, our like-for-like turnover was slightly higher than expected,” highlighted Thierry Garnier, general manager of the group, quoted in the press release.

"Sales in particular in France and the United Kingdom were a little better than expected, but this was more than offset by our activity in Poland" - the group's third market - where "last year we made a first quite exceptional semester,” he detailed during a conference call with journalists.

In France, where performance was "resilient" for Castorama but "weaker" for Brico Dépôt, "household confidence has reached its lowest level in 10 years", Mr. Garnier also insisted.

At the end of May, the owner of the Castorama, Brico Dépôt, B&Q and Screwfix brands - which has just over 1.500 stores mainly located in the United Kingdom, Ireland, France and Poland - had already confirmed that it anticipated a drop in its annual net profit.

On Tuesday, it indicated that it was lowering its objectives for the current financial year, now counting on an adjusted profit before tax of 590 million pounds (684 million euros), and no longer on an “analyst consensus” of 634 million pounds which he has taken over until now.

“Business continues to be dynamic in the United Kingdom and Ireland. However (...) we have updated our results guidance for this year and we have initiated a plan to control our costs accordingly” , commented Thierry Garnier.

“In the medium and long term, we remain very positive on the growth prospects of the home improvement sector in our markets, and we are confident in our ability to gain market share and achieve our financial objectives in the future. medium term,” added the Director General.

Thierry Garnier indicates in particular that it is banking on the growing needs for products and materials for energy renovation and home insulation, a sector whose sales represent "between 10 and 11%" of the group's revenues.

Furthermore, Kingfisher indicates that its online sales increased by 7,1% over the half-year.

In France, the brand dedicated to professionals Screwfix now has nine stores, and is now planning “up to 20 openings this year”.

Kingfisher also announced a new £300m share buyback programme.