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(Alliance News) - Kingfisher PLC on Tuesday reported a profit surge in the first-half as the DIY retailer benefited from continued demand for home-improvement projects spurred by the Covid-19 pandemic.
For the six months to July 31, the company's pretax profit grew 70% to GBP677 million from GBP398 million.
Interim revenue climbed 20% to GBP7.10 billion from GBP5.92 billion, while like-for-like sales were up 23% year-on-year and 21% compared to 2020.
In the UK & Ireland, like-for-like sales rose 28% in the first half, but are down 1.9% to date in the third quarter.
"We have navigated well through the challenging operational impacts of the pandemic, retaining good product availability at competitive prices and operating safely," said Chief Executive Thierry Garnier.
"We have addressed many of Kingfisher's past issues, with 'fixes' now complete in the UK and Poland. We are also on track in France, with positive results from our ongoing programme to repair our ranges and optimise the logistics network."
Garnier nodded to e-commcerce, which was the FTSE 100 retailer's fastest growing channel in the first-half. Group e-commerce sales were up 21% on 2021 and multiplied from 2020, a year that experienced some pre-pandemic demand.
"Following the onset of the pandemic and the rapid changes seen in consumer habits, we have accelerated our planned e-commerce initiatives to offer greater convenience and faster deliveries to our customers," Kingfisher said.
"We rapidly transformed our operations in March 2020 to shift to store-based picking and fulfilment as a priority."
The B&Q owner added it was continuing to make progress against 'Powered by Kingfisher' strategic aims, which was driving share growth in key markets.
The company declared an interim dividend of 3.80 pence per share, up 38% from 2.75 pence last year.
Also on Tuesday, Kingfisher unveiled a GBP300 million share buyback programme to commence soon, but did not provide any further details. It said the programme reflects "strong cash generation and confidence in outlook".
Looking ahead, the company expects full-year adjusted pretax profit between GBP910 million to GBP950 million. It posted adjusted pretax profit of GBP756 million in 2021.
"Our industry is benefiting from new trends that we believe will be supportive over the long term," commented Garnier.
"These include people spending more time working from home, the emergence of a new generation of DIY'ers, the need for greener homes, and a strong housing market. Kingfisher is well placed to capitalise on these trends and deliver sustained outperformance."
Shares were down 5.5% at 348.10 pence in London on Tuesday morning.
By Josie O'Brien; josieobrien@alliancenews.com
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