Q2 pre-close update

Wednesday 24^th July 2013

 

Q2 pre-close update for the 10 weeks to 13 July 2013

 

Kingfisher reports total sales up 5.2% in constant currencies,

up 2.5% on a like-for-like basis

 

Constant currencies	10 weeks to 13 July 2013		23 weeks to 13 July 2013
Sales (1)	% Total Change	% LFL  Change	% Total Change	% LFL Change
France (2)	+3.4%	+1.1%	(0.5)%	(2.5)%
UK & Ireland (3)	+3.6%	+2.5%	(0.2)%	(1.5)%
Other International (4)	+11.2%	+5.3%	+8.6%	+3.2%
Total Group	+5.2%	+2.5%	+1.4%	(1.0)%

 

(1)   All figures are on a constant currency basis. Joint Venture (Koçtaş) and Associate (Hornbach) sales are not consolidated. Data is provided for the 23 and 10 weeks to 13 July 2013, with the exception of China and Russia which are reported for the 26 and 13 weeks to 30 June 2013. Romania included from 31 May 2013 acquisition date.

(2)   Castorama and Brico Dépôt.

(3)   B&Q in the UK & Ireland and Screwfix in the UK.

(4)   Poland, China, Spain, Russia and Romania.

 

Ian Cheshire, Kingfisher's Group Chief Executive, said:

 

"Following a tough Q1, I am pleased to report that we have been able to capitalise on the better weather conditions in Q2, particularly in the UK, which has helped us to deliver growth. However, underlying consumer confidence remains weak in our major markets, so we continue to focus hard on our self-help margin and cost initiatives. We are on track to deliver a first half in line with our expectations.

 

"Our self-help plan, 'Creating the Leader', continues to progress well, including the successful completion in Q2 of the acquisition of 15 stores in Romania, our first new country entry in seven years. We remain confident in our future prospects."

 

 

Trading review for the 10 weeks (in constant currencies)

 

Total sales in France were up 3.4% (+1.1% LFL) benefiting from some reversal of the Q1 negative calendar impact of around 1.5%. Castorama sales were up 3.5% (+1.2% LFL). Brico Dépôt sales were up 3.3% (+1.0% LFL).

 

Total sales in the UK & Ireland were up 3.6% (+2.5% LFL). B&Q total sales were up 1.7% (+1.9% LFL) with sales of outdoor and seasonal products up nearly 20%, representing almost 40% of total sales. Screwfix sales grew by 17.8% (+6.6% LFL).

 

Total sales in Other International grew by 11.2% (+5.3% LFL). Sales in Poland were up 7.5% (+3.6% LFL) benefiting from the pricing reinvestment over the last year and from higher sales of seasonal products (+8% LFL). Sales in Russia grew by 9.4% (+9.0% LFL) whereas sales in Spain were up 14.4% (-6.1% LFL). In China sales were up 9.7% (+10.7% LFL) driven by promotional and pricing activity. 

 

COMPANY PROFILE

 

Kingfisher plc is Europe's leading home improvement retail group and the third largest in the world, with around 1,060 stores in nine countries in Europe and Asia. Its main retail brands are B&Q, Castorama, Brico Dépôt and Screwfix. Kingfisher also operates the Koçtaş brand, a 50% joint venture in Turkey with the Koç Group, and has a 21% interest in Hornbach, Germany's leading large format DIY retailer.

 

CREATING THE LEADER

 

Progress continued with the next phase of our medium term development under the following eight steps:

 

EASIER

1.   Making it easier for our customers to improve their home

2.   Giving our customers more ways to shop

 

COMMON

3.   Building innovative common brands

4.   Driving efficiency and effectiveness everywhere

 

EXPAND

5.   Growing our presence in existing markets

6.   Expanding in new and developing markets

 

ONE TEAM

7.   Developing leaders and connecting people

8.   Sustainability: becoming 'Net Positive'

 

Further details on progress will be given with the interim results on 11 September 2013 for the half year ended 3 August 2013.

 

Enquiries

Ian Harding, Group Communications Director	020 7644 1029
Sarah Levy, Head of Investor Relations	020 7644 1032
Nigel Cope, Head of Media Relations	020 7644 1030
Matt Duffy, Investor Relations Manager	020 7644 1082
Clare Haines, Media Relations Manager	020 7644 1286
Brunswick	020 7404 5959

 

Further copies of this announcement can be downloaded from www.kingfisher.com or viewed on the Kingfisher IR iPad App available for free at the Apple App store.

We can also be followed on twitter @kingfisherplc. 

Kingfisher American Depository receipts are traded in the US on the OTCQX platform:

(OTCQX: KGFHY)  

http://www.otcmarkets.com/stock/KGFHY/quote

FORWARD-LOOKING STATEMENTS

 

This press release contains certain forward-looking statements, which should be considered, amongst other statutory provisions, in light of the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts may be forward-looking statements. Such statements are, therefore, subject to risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied because they relate to future events. We urge you to read our annual report and other company reports, including the risk factors contained therein, for a more detailed discussion of the factors that could affect our future performance and the industry in which we operate. Reliance should not be placed on any forward-looking statement. The forward-looking statements contained herein speak only as of the date of this press release and the Company undertakes no obligation to update any forward-looking statement publicly, whether as a result of new information, future events or otherwise. Nothing in this press release should be construed as a profit forecast.

 

Please refer to page 116 of the Annual Report and Accounts 2012/13 for further details and definitions concerning forward-looking statements and how they should be considered.