Kingfisher's profits drop nearly 12 %

Kingfisher's profits drop nearly 12 %

Kingfisher, Europe's largest DIY group, is facing some problematic situations. Its French market is especially worrisome, but the group has basically only established growth in its British home territory.

3.6 % turnover drop

Kingfisher, which owns B&Q and Screwfix in Great Britain and Castorama and Brico Depot in France, experienced a 3.6 % turnover drop in its third quarter. It announced a 2.82 billion pounds (3.56 billion euro) turnover in a trading update this morning. Profit dropped nearly 12 % to 225 million pounds (284 million euro), down from the 271 million pound profit it managed in the same quarter last year.

 

Basically, Kingfisher is only doing well in its own home territory of Great Britain and Ireland, with a 5 % turnover increase to 1.148 billion pounds (1.45 billion euro) and an 11 % profit growth. Particularly Screwfix is doing well, with a like-for-like 13.1 % growth.

 

France is struggling the most with a 9.3 % turnover drop (- 2.7 % at level exchange rates). With 1.064 billion pounds (1.34 billion euro), it has even lost its position as Kingfisher's primary market, something that will not change anytime soon according to the board. In the rest of the world, its turnover dropped 7.4 % and profit even plummeted 33 %, but the impact rather smaller as the rest of the world only contributes a fifth of total turnover.

 

Véronique Laury, Kingfisher France's CEO, will have her work cut out for her when she succeeds Ian Cheshire on 8 December and become the group's CEO. Kingfisher is the world's third largest DIY chain, trailing 2 American companies: Lowe's and Home Depot.

Questions or comments? Please feel free to contact the editors


Les Mousquetaires acquires Bricorama

05/01/2018

The French Bureau of Competition has approved franchise group Les Mousquetaires' acquisition of DIY chain Bricorama. The deal will catapult Les Mousquetaires into the third position in the French DIY industry.

Intergamma's dispute with Bricorama persists

01/12/2017

Intergamma’s issues with CRH’s shares still have not been resolved and it seems the dispute with French shareholder Bricorama has now boiled over. The latter even wants the Chamber of Commerce to intervene.

Bricorama does not want to sell Gamma

01/09/2017

French DIY company Bricorama will not sell Gamma’s Belgian and Dutch stores. There was a longstanding rumour to that nature, but the company has now refuted those claims.

Kingfisher experiences another turnover drop

17/08/2017

DIY group Kingfisher has experienced yet another disappoiting quarter: the British-French group suffered setbacks in both its home markets and the restructuring plan is also weighing down its results.

Sizeable profit drop for Geberit

17/08/2017

Swiss sanitation specialist Geberit has had a disappointing first semester of 2017, in which its profit dropped about 20 %. Turnover also slumped, but only slightly.

Intergamma: departure largest shareholder sparks turmoil

01/08/2017

Irish group CRH, which owns nearly 50 % of DIY Intergamma’s shares, wants to sell those shares, but the other shareholders cannot find an appropriate solution.

Back to top