Kingfisher (KGF)

Sector:

Retailers

Index:

FTSE 100

278.10p
   
  • Change Today:
    -0.90p
  • 52 Week High: 334.60p
  • 52 Week Low: 203.00p
  • Currency: UK Pounds
  • Shares Issued: 1,940.03m
  • Volume: 4,446,065
  • Market Cap: £5,395m
  • RiskGrade: 158

Strong second quarter recovery sees Kingfisher profits rise

By Josh White

Date: Tuesday 22 Sep 2020

LONDON (ShareCast) - (Sharecast News) - Kingfisher reported a "resilient" first half performance on Tuesday, with its sales falling 1.1% at constant currencies to £5.9bn, reflecting the impact of Covid-19 in the first quarter, partially offset by a "strong" recovery in the second quarter.
The FTSE 100 home improvement retailer's adjusted pre-tax profit was ahead 23.1% year-on-year at £415m for the six months ended 31 July at £415m, while its retail profit rose 17.7% at constant currency to £533m.

Its retail profit margin was ahead 140 basis points at 9%, with adjusted basic earnings per share improving 28% to 15.1p.

On a statutory basis, Kingfisher's sales were down 1.3% at £5.92bn, and its gross profit was 1.6% weaker at £2.19bn.

Free cash flow came in at £1.04bn, which was up £838m, and reflected the company's higher operating profit, working capital inflow of £656m, and lower capital expenditure.

Its net debt-to-last 12 months' EBITDA ratio was 1.0x at period end, compared to 2.0x at the start of the year, and well below its medium-term target range of between 2.0x and 2.5x.

The board declared no interim dividend, given the ongoing uncertainty around the coronavirus pandemic.

"We delivered a resilient financial performance in the first half of the year, with the adverse impact of Covid-19 in the first quarter offset by a strong recovery in the second quarter," said chief executive officer Thierry Garnier.

"This recovery has continued into the third quarter to date, with growth across all banners and categories.

"The crisis has prompted more people to rediscover their homes and find pleasure in making them better."

Garnier said it was also creating new home improvement needs, as people were seeking new ways to use space or adjust to working from home.

"It's also clear that customers are becoming more comfortable with ordering online.

"Through our new strategic direction our retail banners have gained agility and have leveraged their distinct positioning.

"This has strengthened our market positions and delivered much improved like-for-like sales before and after the lockdowns."

He said the company's experience through the crisis had reinforced the benefits of its strategic direction, and made the firm "bolder" in its priorities.

"We have made progress against the strategic plan announced in June.

We are fundamentally reorganising our commercial operating model to serve our customers better.

"We have accelerated our plans around e-commerce, with a focus on fulfilment from stores."

Kingfisher was continuing to improve its operational performance in France, Garnier said, and introduced new trading approaches at each of its banners.

It was also testing a number of initiatives, including new concepts, services and partnerships.

"Looking forward, while the near term outlook is uncertain, the longer term opportunity for Kingfisher is significant.

"There is a lot more to do, but the new team and new plan is now established in the business and we are committed to returning Kingfisher to growth."

At 0810 BST, shares in Kingfisher were up 6.2% at 281.1p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Kingfisher Market Data

Currency UK Pounds
Share Price 278.10p
Change Today -0.90p
% Change -0.32 %
52 Week High 334.60p
52 Week Low 203.00p
Volume 4,446,065
Shares Issued 1,940.03m
Market Cap £5,395m
RiskGrade 158

Kingfisher Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
17.57% above the market average17.57% above the market average17.57% above the market average17.57% above the market average17.57% above the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Price Trend
32.69% above the market average32.69% above the market average32.69% above the market average32.69% above the market average32.69% above the market average
30.43% above the sector average30.43% above the sector average30.43% above the sector average30.43% above the sector average30.43% above the sector average
Income
67.22% above the market average67.22% above the market average67.22% above the market average67.22% above the market average67.22% above the market average
53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average53.85% above the sector average
Growth
38.60% above the market average38.60% above the market average38.60% above the market average38.60% above the market average38.60% above the market average
4.55% above the sector average4.55% above the sector average4.55% above the sector average4.55% above the sector average4.55% above the sector average

What The Brokers Say

Strong Buy 1
Buy 0
Neutral 10
Sell 5
Strong Sell 2
Total 18
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Kingfisher Dividends

  Latest Previous
  Interim Final
Ex-Div 06-Oct-22 19-May-22
Paid 11-Nov-22 27-Jun-22
Amount 3.80p 8.60p

Trades for 01-Feb-2023

Time Volume / Share Price
16:45 550 @ 279.00p
16:45 550 @ 279.00p
16:35 2,839,376 @ 278.10p
16:35 15,699 @ 278.10p
16:35 1,750 @ 278.10p

Kingfisher Key Personnel

Chair Andrew Cosslett
CEO Thierry Garnier
CFO Bernard Bot

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