Here is a summary of the key points from the trading statement of Kingfisher PLC for the third quarter ending October 31, 2024
Sales PerformanceKingfisher PLC reported flat total sales (in constant currency) and a 0.6% decrease in reported sales compared to the same quarter last year. Like-for-like sales decreased by 1.1%, with sales for key banners in line or <mark style="background-color:yellow">ahead</mark> of the market.
Regional PerformanceThe UK & Ireland division drove sales growth, particularly Screwfix and TradePoint, while France and Poland saw sales in line with or slightly below the market. Poland made market share gains with improved big-ticket sales.
Category PerformanceCore category sales improved by 0.4%, driven by repair, maintenance, and renovation activities. Big-ticket and seasonal category sales declined, but with early signs of improvement in big-ticket sales.
Profit GuidanceThe company tightened its full-year adjusted profit before tax guidance range to £510 million to £540 million, while free cash flow guidance remains unchanged.
Market OutlookKingfisher expects near-term market uncertainty but remains confident in its business model and ability to manage retail prices, costs, and cash effectively.
Q4 TradingTrading in the fourth quarter has started with an improvement over the third quarter, with Group like-for-like sales at -0.5% for the first three weeks of November.
Impact of Government AnnouncementsThe company expects to offset the impact of wage increases and is developing additional mitigations for the impact of changes in National Insurance Contributions and other taxes in the UK and France, totaling approximately £45 million.
Technical GuidanceNet finance costs are expected to be £115 million for the next financial year (FY 25/26) and £100 million for the current year (FY 24/25).
Overall MessageDespite economic uncertainties and their impact on consumer sentiment, Kingfisher PLCs trading performance in the third quarter was resilient. The company continues to focus on its strategic priorities and effectively managing retail prices, costs, and cash.