Swiss change of course may cause Kingfisher problems

Swiss change of course may cause Kingfisher problems

British DIY chain Kingfisher may lose a lot of profit in the next few years as a Swiss policy change may impact the Polish currency, which is good for 10 % of the group's turnover.

Strong Swiss currency

The Swiss national bank has decided to lift the cap it had placed on the Swiss franc, which means it may gain value compared to the euro. The news caused panic on the stock exchange and may also negatively affect DIY group Kingfisher's results. The Polish zloty depends heavily on the Swiss franc as more than half of its mortgages are priced in Swiss francs. As their value will now rise, it will also influence the Polish curency.

 

Poland is one of Kingfisher's most profitable markets: it already contributes about 10 % of its total group turnover and a weakened market could severely impact Kingfisher's 2016 and 2017 profits.

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