skip to main content
Find Insight DIY on
* * *

International DIY News

Kingfisher: France Struggles; Strong Growth From Poland & Romania

Bricot Depot Romania.jpg

Kingfisher has reported unaudited results for the six months ended 31st July 2019.

Information regarding the Group's UK business can be found here:

Screwfix Growth Counters B&Q Decline in UK & Ireland

Screwfix Like-For-Like Sales Rise by 5.1%


Kingfisher France sales decreased by 4.2% (-4.4% LFL) to £2,158 million. According to Banque de France data*, sales for the home improvement market were up 1.9% and continue to be volatile from month to month. Gross margin % increased by 60 basis points with the benefit of lower promotional activity at Brico Dépôt partly offset by a weak performance at Castorama France, including impacts from logistics & stock inefficiencies. Retail profit decreased by 12.2% to £114 million.

Castorama total sales declined by 4.3% (-4.3% LFL) to £1,143 million reflecting price repositioning (c. -2% impact on LFL sales), and the impact of transformation-related activity (c. -2% impact on LFL sales). LFL sales of weather-related categories were down 4.1% while sales of non-weather-related categories, including showroom, were down 4.5%. Further commentary on the performance of Castorama France is detailed in Section 1 of this release.

Brico Dépôt total sales declined by 4.2% (-4.6% LFL) to £1,015 million driven by the proactive reduction of low margin promotional activity, which impacted LFL sales by c. -5%. Gross profit and gross margin % both increased year on year.

Across the two businesses, space remained broadly flat.

Other International 

Other International total sales increased by 1.8% (+1.2% LFL) to £1,184 million reflecting growth in Poland and Romania. Retail profit decreased by 0.9% to £75 million, reflecting a modest decline in Poland and similar combined losses in Romania, Russia, and Screwfix Germany.

Sales in Poland were up 5.2% (+3.3% LFL) to £753 million. Two new stores were opened in H1. The removal of one further Sunday of trading each month had an estimated adverse impact on LFL sales of c. 1%. LFL sales of weather-related categories were up 5.1% while sales of non-weather-related categories, including showroom, were up 2.9%. Gross margin % was down 20 basis points reflecting higher sales of weather-related categories and higher clearance. Retail profit decreased by 0.5% to £88 million reflecting good sales growth offset by higher costs, largely driven by wage inflation, higher digital costs and pre-opening costs.

Romania sales increased by 4.1% (+10.5% LFL) to £96 million with a good performance of unified & unique ranges. The business made a retail loss of £8 million (2018/19: £7 million reported retail loss) driven by losses in the former Praktiker stores, which have been rebranded to Brico Dépôt with the final store to complete in H2 19/20. The back-office integration process for the businesses will commence towards the end of the year.

At Q3 18/19 we announced the decision to exit Russia and Iberia to focus on markets where we have, or can reach, a market leading position. At FY 18/19 we announced that we would close our 19 Screwfix Germany outlets and retain an online presence.
In Iberia* sales decreased by 3.6% (-3.6% LFL) to £176 million, with retail profit decreasing by 5.0% to £3 million.

In Russia sales declined by 6.9% (-6.9% LFL) to £154 million. The business delivered a retail loss of £7 million (2018/19: £5 million reported retail loss) reflecting a continuing challenging market environment and one store closure.

In Screwfix Germany, all 19 stores were closed during the period and the business made a £4 million retail loss (2018/19: £7 million reported retail loss). Screwfix maintains an online presence in Germany through its European website.

In Turkey, Kingfisher’s 50% JV, Koçtaş, contributed retail profit of £3 million (2018/19: £2 million reported retail profit).

Source : Insight DIY Team and Kingfisher

For all the very latest news and intelligence on the largest UK home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.

18 September 2019

Related News

view more International DIY News

Insight DIY always publishes the latest news stories before anyone else and we find it to be an invaluable source of customer and market information.

Max Crosby Browne - CEO, Home Decor

Don't miss out on all the latest, breaking news from the DIY industry