LONDON, Sept 20 (Reuters) – Kingfisher reported a 29.5% drop in first-half trading profit on Tuesday, adding it was seeing resilience in sales of outdoor and high-end products, despite inflation.
The British DIY store group, which notably owns Castorama and Brico Dépôt in France, said on Tuesday it had made an adjusted pre-tax profit of 472 million pounds (538.46 million euros) in the six months ended July 31 , slightly above the average analyst forecast and up from £669 million in the same period last year when its performance was boosted by the pandemic.
The Kingfisher title fell 5.5% at 10:15 a.m. on the London Stock Exchange.
Total revenue at constant currency was down 2.8% to £6.81 billion, while the drop was 4.1% like-for-like. However, the group said it had gained market share.
The start of the third quarter is encouraging, the company said, with like-for-like sales in mid-September down 0.7% on the year, but up 15.2% year on year.
Third-quarter sales are in line with full-year 2022-23 adjusted pre-tax profit guidance of around 770 million pounds announced at the start of the year, it added.
However, the company has developed several business scenarios to account for the possibility of a more uncertain economic environment.
According to Kingfisher, these scenarios suggest a profit of 730 million pounds to 770 million pounds. (Report James Davey, French version Alizée Degorce, edited by Kate Entringer)