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B&Q & Screwfix Drive Retail Profit For Kingfisher

B&Q social distancing

Kingfisher has reported on trading for the year ended 31st January, 2021.

For Group performance data, please click here

UK & Ireland Results

£m

2020/21

2019/20

% Reported Change

 

% Constant

Currency

Change 

% LFL

Change

B&Q

3,707

3,284

+12.9%

+12.8%

13.0%

Screwfix

2,036

1,828

+11.4%

+11.4%

6.6%

Total sales

5,743

5,112

+12.4%

+12.3%

10.7%

 

 

 

 

 

 

Retail profit

681

499

+36.3%

+36.3%

 

Retail profit margin %

11.9%

9.8%

+210 bps

+210bps

 

Kingfisher UK & Ireland sales increased by 12.3% (LFL +10.7%) to £5,743 million, reflecting strong trading from Q2 20/21 onwards, following the impact of COVID-related temporary store closures and disruption in Q1 20/21. Gross margin % increased by 80 basis points, largely reflecting higher full-price sales and lower clearance in B&Q, partly offset by higher supply & logistics costs in Screwfix. 

Retail profit increased by 36.3% to £681 million, with a strong performance from both B&Q and Screwfix. Operating costs increased by 7.2% largely due to higher staff costs (headcount increases, higher bonuses and wage inflation), 41 net new store openings, and COVID-related costs. This was partially offset by temporary cost reduction measures (e.g. reduced advertising & marketing). 

In H2 20/21, Kingfisher repaid the full amount of £25 million received in H1 20/21 under the UK and Republic of Ireland furlough programmes. In addition, in December 2020, Kingfisher decided to forego all UK and Republic of Ireland business rates relief, worth £105 million in FY 20/21. Of this, the benefit in H1 20/21 from business rates relief was £42 million, which was repaid. 

B&Q total sales increased by 12.8% to £3,707 million. LFL sales increased by 13.0% with building & joinery the strongest performing category, followed by outdoor and surfaces & décor. LFL sales of weather-related categories increased by c.22% while sales of non-weather-related categories, including showroom, increased by c.10%. B&Q’s e-commerce sales grew strongly in FY 20/21, increasing by 117% and representing 10% of total sales (FY 19/20: 5% of total sales). 

In FY 21/22 we plan to relaunch TradePoint, B&Q’s trade-focused banner. The business continues to be a significant part of B&Q at c.19% of its sales, with sales growth of c.11% in FY 20/21. Work is ongoing to address gaps in ranges, and to improve the digital customer journey and services proposition. Engagement from trade customers has been high in FY 20/21, with TradePoint’s H2 20/21 LFL sales growing at over 20%.  

B&Q opened five new stores in FY 20/21, including three compact stores. 

Screwfix total sales increased by 11.4% (LFL +6.6%) to £2,036 million, with net space growth of nearly five percentage points. E-commerce sales grew by 165%, representing 78% of total sales (FY 19/20: 33% of total sales). Screwfix’s stores in the Republic of Ireland continue to trade well (first store opened in December 2019). Screwfix orders were taken exclusively online from late March to late July 2020, with all stores closed for in-store browsing and purchasing during that period. 

In FY 20/21, Screwfix opened 36 net new stores (including eight in the Republic of Ireland). The total number of stores at year-end is 722, including 12 in the Republic of Ireland. The business has a longer-term target of over 900 stores in both the UK and Republic of Ireland (versus previous target of 800 in the UK). In H1 21/22 the business will commence its broader international expansion plans, initially through an ‘online-first’ approach, similar to that applied to the Republic of Ireland.

Source : Kingfisher PLC

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22 March 2021

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