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Kingfisher UK & Ireland - B&Q & Screwfix results

Kingfisher UK & Ireland Results:

Total sales grew by 0.1% to £4.3 billion (-1.4% LFL) in a continuing challenging consumer environment which saw Focus DIY, the UK’s fourth largest DIY operator with 177 stores, close during the year. Retail profit grew by 11.6% benefiting from continued gross margin and cost initiatives.

GfK market data for the UK’s leading home improvement retailers(1) was down around 3% across the year whereas the trade market(2) declined by 7%.

B&Q UK & Ireland:

B&Q UK & Ireland’s total sales were down 0.9% (-1.8% LFL) to £3.8 billion with outdoor product sales up around 1% and indoor product sales down around 3%.

The new in-store trade-only ‘TradePoint’ offer continues to grow and attract new trade professional customers with around 800,000 registered by the end of the year, four times the number previously registered with the B&Q Trade Discount Card. This growing database enables B&Q to identify and directly market to this important customer segment for the first time.

Retail profit grew by 10.9% to £238 million. Gross margin was up 30 basis points against tough comparatives (2010/11: +110 basis points) benefitting from sales of higher margin products and more direct sourcing. A strong focus on operating cost efficiencies also continued with costs (SG&A(3)) percentage to sales held broadly flat across the year despite high general inflation.

Screwfix:

Screwfix grew total sales by 8.2% (+1.9% LFL) to £518 million in a challenging smaller tradesman market(2). Continuing initiatives which helped to drive market share gains included new ranges (e.g. safety and work wear), the addition of specialist trade desks 10/25 exclusive to plumbers and electricians within Screwfix outlets, and the continued roll out of new outlets.

During H1 Screwfix developed and successfully trialled a smaller format outlet (400 sq m compared with the typical 700 sq m) in order to access smaller or more densely populated urban catchments. As a result, Screwfix accelerated its UK expansion plans beyond the 20 new outlets originally planned at the start of the year. As a result, 53 net new outlets were opened during the year, 42 in the newer, smaller format. Screwfix now operates 215 outlets in total which now account for around two-thirds of total sales.

Retail profit was up 16.2% to £33 million, reflecting the strong sales growth, more direct
sourcing, distribution efficiencies and continued tight cost control.

Source : Kingfisher PLC
www.kingfisher.com

22 March 2012
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