Kingfisher Raises Profit Outlook After 9.9% First-Half Gain

Kingfisher raised its full-year profit and cash forecasts after adjusted pre-tax profit climbed 9.9% to £404 million in the six months ended July 31. The British home-improvement group now expects annual adjusted profit before tax of £595 million to £635 million.

Sales, including goods sold through online marketplaces, rose 1.6% in a mixed market. Trade sales excluding Screwfix increased 16%, while e-commerce sales excluding Screwfix also grew 16%. Marketplace sales value jumped 42% to £372 million.

Screwfix was a standout, with like-for-like sales up 5.6%. Kingfisher said it gained market share at Screwfix, in Poland and Spain. Poland’s sales increased 3.6%, while Iberia’s like-for-like sales rose 7.7%.

Results were weaker in some other areas. Brico Dépôt France’s like-for-like sales fell 4.2%, which the company linked to heatwaves and weaker demand for building materials and larger projects. B&Q also faced a softer market.

A 70-basis-point increase in gross margin and £44 million in structural cost savings helped lift profit. Those gains more than offset £48 million in operating-cost inflation, though a £14 million business-rates refund also supported the result.

Kingfisher generated £339 million in free cash flow, down from £478 million a year earlier. The company maintained its interim dividend at 3.8 pence per share and said £125 million of its £300 million share-buyback program had been completed.

The updated forecast raises the midpoint for both profit and free cash flow by £20 million. Kingfisher said its second-half assumptions remain broadly unchanged, leaving investors focused on whether trade and digital growth can hold up if big-ticket home projects stay weak.