[ad_1]
// Home and DIY giant Kingfisher has seen profits and sales fall in the first half thanks to soaring inflation and supply chain issues
// The B&Q and Screwfix owner saw profits drop to £474m in the six months to 31 July
B&Q owner Kingfisher has reported a 29.5% drop in first-half profits as the DIY boom which started during the pandemic ends and inflation hits budgets, adding that it now faces a “more uncertain” macroeconomic environment.
Pretax profits at the DIY retailer slumped 30% to £474m in the six months to 31 July, down from £677m a year earlier, while operating profit fell 29.1% to £531m in the period.
Sales slipped by 4.1 % to £6.8bn compared with the first half of 2021, when home improvement boomed as nationwide lockdowns forced Brits to stay home, while gross profits slipped 7.4% to £2.4bn. However, the group said it had won market share.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Profit margins dropped as the Screwfix owner grappled with rising raw material costs and supply chain pressures although Kingfisher did say it is back to ‘pre-pandemic levels for in-store product availability after supply chain issues left gaps on its shelves.
The company also said it was seeing resilience in outdoor and ‘big-ticket’ category sales trends despite the cost-of-living crisis.
Kingfisher chief executive Thierry Garnier said the group had made an “encouraging” start to trading in its third quarter, with like-for-like sales to September 17 down 0.7% on the year but up 15.2% on a three-year basis.
It said third-quarter trading was consistent with the full year 2022-23 adjusted pretax profit guidance of about £770 million set out at the start of the year although it has run several trading scenarios to take into account the potential for a more uncertain economic environment.
It said these point towards profit outcomes of £730 million to £770 million.
Click here to sign up to Retail Gazette‘s free daily email newsletter
[ad_2]
Source link >
