Kingfisher Q1 Report 2024

“Trading in the first quarter has been in line with our expectations. We have seen continued resilience in our core categories, although ‘big-ticket’ sales have been weak reflecting the broader market as expected. In the UK, we have gained considerable share across our banners. Our trade proposition continues to resonate with customers, driving positive LFL sales at Screwfix and strong LFL sales growth of 8.5% at TradePoint. In France, while slightly improved on Q4, trading reflects the weak overall retail market. And in Poland, we are seeing encouraging sales trends as the consumer environment improves.

Highlights

• Q1 sales of £3.3bn; total sales +0.3% (constant currency) and -0.3% (reported)
• LFL -0.9% including a +1.9% calendar impact (of which +1.1% relates to the leap year)(1)
• Q1 by region:
• UK & Ireland: share gains at B&Q supported by strong e-commerce and TradePoint sales; share gains and positive LFL at Screwfix
• France: sales in line with our expectation. Castorama and Brico Dépôt performing broadly in line with weaker market
• Poland: improved sales trend supported by stronger market
• Q1 by category:
• Core (66% of sales): resilient performance (LFL -0.3%)(2), with sequential improvement in YoY volume trends vs Q4 23/24
• Big-ticket (15% of sales): weak sales as expected (LFL -6.3%) (3), reflecting trends across the broader market
• Seasonal (19% of sales): resilient sales (LFL +1.9%) (4) despite unfavourable weather in April
• Volume and retail price inflation flat YoY; negative mix impact on average selling price from lower ‘big-ticket’ sales
• Q2 trading to date(5) in line with underlying Q1 trends, with LFL -2.5%
• Making progress against our key strategic priorities in Q1:
• Opened three Screwfix stores in France and seven in the UK & Ireland
• Total e-commerce sales +12.7%; now 18.8% of Group sales (Q1 23/24: 16.9%)
• Continued strong growth of e-commerce marketplace at B&Q (GMV(6) +99.4% YoY), and successful launch at Castorama France in March
• TradePoint LFL sales +8.5%. Trade loyalty programmes now live in all banners
• Full year guidance unchanged: expect FY 24/25 adjusted PBT of c.£490m to £550m(7) and free cash flow of c.£350m to £410m