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.