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Kingfisher Group releases half year results ended 31 July 2020

Published: 23 September 2020 - Neil Mead

Kingfisher Group has released its half year results which show the business has faired well through the challenging first six months of 2020, with sales of just under £6b and gross profits of just over £2b, providing a margin of 37 per cent.

 

Highlights of the results include a resilient performance in H1 with strong sales recovery in Q2 and stronger demand for home improvement across its markets, with a new strategy delivering early benefits.

The Covid-19 crisis has reinforced the Group’s approach, pushing it to be bolder, with encouraging progress with its strategic priorities. The on-going focus is now on managing through Covid-19 and the business is confident in the opportunities ahead and committed to returning Kingfisher to growth.

Thierry Garnier, Chief Executive Officer, said: “We delivered a resilient financial performance in the first half of the year, with the adverse impact of Covid-19 in Q1 offset by a strong recovery in Q2. This recovery has continued into Q3 to date, with growth across all banners and categories.

“The crisis has prompted more people to rediscover their homes and find pleasure in making them better. It is creating new home improvement needs, as people seek new ways to use space or adjust to working from home. It’s also clear that customers are becoming more comfortable with ordering online. And delivering value to consumers is imperative against a challenging economic backdrop.

“Through our new strategic direction our retail banners have gained agility and have leveraged their distinct positioning. This has strengthened our market positions and delivered much improved LFL sales before and after the lockdowns. Our experiences through the crisis have reinforced the benefits of our strategic direction and have made us bolder in our priorities.

“We have made progress against the strategic plan announced in June. We are fundamentally reorganising our commercial operating model to serve our customers better. We have accelerated our plans around e-commerce, with a focus on fulfilment from stores. We are continuing to improve our operational performance in France, and have introduced new trading approaches at each of our banners. We are testing a number of initiatives, including new concepts, services and partnerships.

“There remains considerable uncertainty around Covid-19 and our near term priorities have not changed – to provide support to the communities in which we operate, to look after our colleagues as a responsible employer, to serve our customers as a retailer of essential goods, and to protect our business for the long term. We remain proud of, and humbled by, the response of our teams to the current challenges.

“Looking forward, while the near term outlook is uncertain, the longer term opportunity for Kingfisher is significant. There is a lot more to do, but the new team and new plan is now established in the business and we are committed to returning Kingfisher to growth.”

Outlook for FY 20/21 and beyond

• Encouraging start to the second half of the year. Q3 20/21 Group LFL sales up 16.6% (to 19 September 2020) and growth across all banners and categories
• Continued uncertainty and concerns over Covid-19 and the wider economic outlook limit visibility on sales outlook for remainder of FY 20/21
• Financial guidance provided for FY 20/21 where possible
• Focused on continuing to operate safely, ensuring good product availability, driving through our strategic priorities, and returning the business to growth

To better illustrate these half year results, Kingfisher has released the infographic you see here.

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