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


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.

Strong Dutch growth for Hornbach

09/06/2017

German DIY chain Hornbach’s turnover and profit grew a lot in the past fiscal year, which ended 28 February 2017. Particularly its Dutch division performed very well.

Cooperative Menouquin joins Hagebau

10/05/2017

Belgian’s largest cooperative in tools, hardware and DIY, Menouquin, will join German Hagebau, a move designed to help Menouquin grow.

Bauhaus opens second Dutch store

05/04/2017

On 14 April, DIY store chain Bauhaus will open its second Dutch store in Twente. Its 15,000 sqm store will be located in the Westermaat business park in Hengelo.

DIY giant Kingfisher's growth slowed down

18/08/2016

British DIY giant Kingfisher will have mixed feelings about its second quarter: its British subsidiaries performed very well, while the French chains' turnover dropped.

Hornbach Netherlands achieves double-digit growth

20/06/2016

In its past fiscal year, German DIY chain Hornbach has raised its consolidated turnover by 5 %, partially thanks to a good performance in the Netherlands: its Dutch turnover growth even reached a double-digit growth.

Back to top