LONDON, March 21 (Reuters) – Kingfisher, owner of the Castorama and Brico Dépôt brands in France, beat expectations for its annual profit on Tuesday, despite a 20% drop from the record result the previous year, boosted in the framework of the coronavirus pandemic.
The British retail group said on Tuesday it made a pre-tax profit of 758 million pounds (865.9 million euros) for the financial year ended January 31, 2023, above a consensus of 741 million pounds and in line with a forecast of 730-760 million pounds.
The title Kingfisher was up 0.7% at 09:08 GMT on the London Stock Exchange, after taking up 3.4% at the start of the session.
Turnover fell by 0.7% at constant exchange rates, to 13.06 billion pounds, and by 2.1% on a like-for-like basis.
The COVID-19 health crisis sparked the DIY craze as people were forced to spend more time at home, with fewer leisure and travel options resulting in a profit of £949m in 2021-22.
In 2022, rising interest rates, inflation and rising energy bills have weighed on consumer spending in the UK and Europe, although sales of DIY products continue to be weak. supported by telecommuting and customer investment in energy-saving products.
Kingfisher, whose stock is up 16% year-to-date, said it was in line with analysts’ average forecast for its 2023-24 financial year of pre-tax profit of £633m.
The group added that it was well positioned to enter the current financial year, citing resilient underlying sales trends at the start of the year.
The company, however, said it expects unfavorable weather conditions and a high basis for comparison in Poland to have an impact on the month of March.
“We are confident both in the growth of our business sector and, thanks to our strategy, in our ability to grow faster than our markets,” said CEO Thierry Garnier.
Kingfisher also announced new medium-term financial priorities, which focus on growth, cash generation and higher returns for shareholders.
The group also plans to announce a new share buyback program when the current £300 million program is completed.
(Reporting James Davey; Writing by Sarah Young and Louise Heavens; French version Diana Mandiá, Editing by Kate Entringer)
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