Kingfisher Share News (KGF)

- Q3 held back by French weakness- Group LFL sales up 1.4 per cent- Group profit up 1.7 per centA weak performance in France held back third quarter retail profits at DIY retailer Kingfisher.While UK and Irish profits were strong thanks to Screwfix, and other territories even stronger, the French arm surrendered 5.6% of profits in constant currencies on flat like-for-like sales to limit group retail profits to a 1.7% gain to £271m, less than analysts had forecast.Broker Numis, for example, had expected Kingfisher to report a solid 7% increase in trading profits to reflect improved UK weather and currency tailwinds from the zloty and euro.Gross margins were down 10 basis points (bps) in France as the Castorama and Brico Depot business suffered higher costs and were forced into higher price promotional activity to generate sales in soft markets impacted by weak consumer confidence. Despite continued focus on cost control, overall costs increased year-on-year resulting in flat reported profits and a fall in constant currencies. Group Chief Executive Ian Cheshire said the French market continued to look difficult."Following a mixed first half, we have seen growth in both sales and profits in our third quarter, one of our most significant trading periods in the year," he said."Whilst we have delivered sales growth in each of our geographies our markets remain challenging, especially in France where consumer confidence is still weak and with no obvious signs of an imminent improvement. "Looking ahead, we remain ready to capitalise on any improvement in conditions or opportunities as they arise. In the meantime, our self-help plan, 'Creating the Leader', continues to progress well so I remain enthusiastic about our longer-term prospects."Despite a largely flat performance from B&Q, due to lower sales of outdoor products, UK and Irish total sales rose 3.7%, like-for-like sales 2% and retail profits 8.3%, thanks to a strong performance from Screwfix and encouraging early signs in the smaller tradesman market.Screwfix grew total sales 21.1% thanks to strong promotions, extended opening hours, nine new outlets and the successful introduction of a mobile 'click, pay & collect' offer last year.UK & Ireland retail profits grew 8.3% to £63m, limited by a 30bps fall in operating profits from price cuts.The Other International segment, sales were boosted by an acquisition in Romania, like-for-like growth in Russia and China, a turnaround in Poland, and new store openings in Turkey and Spain. The segment lifted total sales 11.6% to £653m, up 2.9% on a like-for-like basis, with profits up 13.6% to £68m driven by Poland and a weather-boosted higher contribution from Hornbach in Germany.OH